Traumatic taxes

It is a normal practice in any democratic country to raise required revenues through direct taxation on people’s income. However governments try to ensure that they resort to indirect taxation only after all sources on which direct taxation can be levied have been exhausted and they still need more revenue. Unfortunately, the incumbent government has given tax reliefs and subsidies to real-estate developers, the tobacco industry and fertiliser, sugar and energy cartels. Subsidies should only be given on welfare projects and basic necessities.

Countries levy heavy taxation on tobacco products to fund the consequential high cost of healthcare provision. Doing so also prevents a rise in addiction to smoking and drugs among young people. Levying sales tax on the import of essential hospital items and items needed for the disabled, while giving tax exemptions to luxury goods is condemnable. How can the state justify tax exemptions to fertiliser, when it is not made available to farmers at reduced prices? The state must prioritise citizens’ welfare over everything else.

Malik Tariq Ali

Lahore