Prudent spending

This letter refers to the news report ‘PM approves plan to transform FBR’ (September 21, 2024). The report claims “Prime Minister Shehbaz Sharif granted his nod to go after top one per cent wealthy/affluent class” by taking stern punitive measures such as freezing of bank accounts and banning purchase of immovable property. The best way to increase tax revenues is to spend available resources prudently by facilitating business and improving public services. If government schools and hospitals are working properly, people will save a lot of money. Similarly, if there is efficient public transport, households will save expenditure on their daily commute to work and the government would have to spend less on maintaining road infrastructure due to less traffic.

Additional savings can help bolster government revenues. There is also the fact that tax revenues are currently being wasted on the perks and privileges of senior bureaucrats and elected officials, ineffective subsidies, and loss-making public-sector enterprises. The government should first give up its own perks and privileges and divert resources towards schools, hospitals and public transport. Otherwise, struggling with reorganizing the FBR will amount to a bad worker quarrelling with his tools.

Abdul Majeed

Islamabad