WHILE at a highly recommended restaurant in Karachi’s Do Darya area, I happened to ask about their mode of payment only to be informed that only cash was accepted. When I asked why debit or credit cards could not be used I was informed I could withdraw cash from an automatic teller machine on the premises of the restaurant.

In a country where many business transactions remain unrecorded and assuming that the practice of cash payments implies evading the tax net, I am curious whether the management of this particular restaurant records its income and pays taxes.

The bill included general sales tax. I was, therefore, wondering whether this might be a case of unrecorded economy or tax evasion where the business is earning substantially and at the same time charging GST to their customers. This kind of practice would call for closer scrutiny by the government.

Asad Abbas

Karachi

Published in Dawn, October 21st , 2018