A sense of semblance

This refers to the news report ‘Fighting tax evasion’ by Mansoor Ahmad (January 9). The writer has suggested using NADRA data concerning sale/purchase of property, cars, gold, foreign travel, residence in posh areas etc to identify tax evaders. These variables are not sufficient proof that one has taxable income and has evaded payment of tax. One may have all these amenities with income from agriculture, remittances from abroad, profit on shares and saving deposits – all of which are exempt from income tax.

Tax authorities need information on the taxable income of individuals and businesses. This is done mostly with the connivance of tax collectors. The government should set its own house in order to improve tax collection. It is also important to note that money in private hands is more productively used than by the government. If the tax collected by the Government is wasted on superfluous projects and funding the luxurious lifestyles of ministers, advisers and bureaucrats, an increase in tax collection will not benefit people or the economy. Therefore, the government should pay more attention to check wasteful expenditures and make productive use of available resources.

Abdul Majeed

Islamabad