Game
Pakistan tennis hopes fade as foreign scholarships take priority
字号+ Author: Source:PG Game 2025-01-16 10:48:18 I want to comment(0)
THE government is desperate to increase its abysmally low tax collection to meet the stringent reven
THE government is desperate to increase its abysmally low tax collection to meet the stringent revenue conditions of the new $7bn funding programme approved by the IMF recently. In order to meet the tax target, the FBR has worked out a new compliance and enforcement , which primarily relies on punitive actions against tax evaders and cheaters. The authorities hope that it will compel existing taxpayers to stop underreporting their taxable incomes and incentivise non-filers to become taxpayers in order to avoid restrictions on their use of cash for travel, and the purchase of property, cars and financial instruments. The political and financial leadership appears to be enthusiastic about the new strategy, owing to its promise of achieving the desired results in the near term by narrowing the tax gap of Rs7.1tr — representing tax evasion and corruption — without the need to pursue tedious reforms. On the basis of this plan, Finance Minister Muhammad Aurangzeb announced on Sunday the government’s “ ” as part of the strategy to tap into over the Rs9.3tr in circulation and maximise revenue potential. According to him, and are evading taxes amounting to around Rs1.3tr at the individual level. When it comes to circumventing real tax reforms to broaden the tax base, the new ‘transformation plan’ does not deviate from previous strategies. There is a broad consensus among tax experts and economists that Pakistan’s tax system is complicated, unfair, inequitable, corrupt, and inefficient — enough to discourage people from filing. The experience of other countries has established that broad-based, low-rate taxes provide the least incentives for people to evade, avoid and underreport taxable incomes. India, for example, has significantly increased its direct income tax collection as a ratio of the economy by streamlining its tax regime, offering reduced rates, and curbing exemptions. In addition to increased monitoring and compliance, and the expansion of the formalisation of the economy through technology, initiatives such as incentivised lower tax rates for corporations and individuals who forgo exemptions have been implemented, aligning with the agenda to simplify taxation. It is no wonder that India’s direct tax-to-GDP ratio reached a record high of 6.5pc in the fiscal year 2023-24. This increase is attributed to growth in income tax collections rather than corporate tax collections. The Indian experience shows that tax compliance can be ensured only through a combination of incentives and the fear of punishment. However, the strategy developed by the FBR to boost compliance rates appears to rely solely on enforcement through punitive actions against tax evaders and cheaters, without actually reforming the complicated tax regime. Hence, most tax experts — unlike the minister — have little confidence in the plan as a viable strategy that will help Pakistan overcome its tax woes.
1.This site adheres to industry standards, and any reposted articles will clearly indicate the author and source;
Related Articles
-
Jackpot Crush: The Ultimate Casino Slots Experience
2025-01-16 10:11
-
Admiral Twin: The Sonic Legacy of Tulsa's Own Power Pop Band
2025-01-16 10:04
-
Kairo 365: Your Year-Round Travel Companion
2025-01-16 10:00
-
Plinko Palace: A Dive into a World of Fun and Excitement
2025-01-16 08:06
User Reviews
Recommended Reads
Hot Information
- How to Withdraw Money from 1xBet Pakistan: A Step-by-Step Guide
- Twin Spin 777: An Exciting Journey into the World of Online Slots
- Crazy777: The Ultimate Gaming Experience
- Online Casino Apps in Pakistan: A Comprehensive Guide
- Aviator Desant: The Evolution and Impact of Airborne Operations
- Baccarat: The Elegant Game of Chance and Strategy
- Money Gogo: A New Era of Financial Freedom
- Lucky Lot Win: Unveiling the Secrets Behind Successful Lottery Play
- Exploring the Thrill of Betway: Your Ultimate Online Casino Destination
Abont US
Follow our WhatasApp account to stay updated with the latest exciting content