The taxman cometh

This refers to the news report ‘Additional taxes, sales tax registration: Traders announce protest outside Finance Ministry on 27th’ (Sept 20). The finance minister’s decision to impose extra sales tax, which will progressively increase in proportion to electricity consumed by non-filers, is being resisted as if it were a gross brutality. One hopes that the government will not give in to any blackmail. Digital tax collection and tax assessment is being practised all over the world. Pakistan’s failure to achieve economic stability and self-reliance is a result of massive tax evasion and loopholes built in the system by corrupt officials. These are big threats to national security. For Pakistan to get out of this economic mess every retail or wholesale outlet and manufacturer must have its sales and distribution digitally monitored with minimal human involvement.

No system of governance can work without tax collection across the board and a welfare system for the most deprived. Repetitive tax amnesty schemes, a failure to prosecute evaders and financial indiscipline have allowed tax evasion to flourish. This means that the country inevitably has to resort to taking foreign and domestic debts to meet its expenditures. The manner in which big fertilizer and cement manufacturers tried to avoid paying the Gas Infrastructure Development Cess (GIDC) is a classic example of how some powerful groups evade laws.

Malik Tariq Ali

Lahore