SINCE the ongoing economic crisis hit the country in the closing months of 2021, successive administrations have increased their drive towards collecting tax revenues. As the current tax-to-GDP ratio is a bare minimum in comparison to other developing countries, the target has been to bring the ratio in line with the world average.

The Federal Board of Revenue (FBR) has sought various strategies to enhance tax revenues in the country. Prior to expanding the tax net, however, the government should overcome the trust deficit among the taxpayers, who are not sure if their money is going to be used for the right purposes.

Pakistan’s standing is alarmingly low on the Corruption Perceptions Index (CPI). With such a low credibility, voluntary tax payment is like daydreaming. Not a single retailer, wholesaler, trader, entrepreneur or anyone else would wish to throw their hard-earned money to finance corruption within the system.

The government is just a mediator between taxpayers and the public, not a tax-owner. Before the government intro- duces any strategy or plan to improve collection, it must improve credibility.

Muhammad Ilyas
Zhob

Published in Dawn, May 18th, 2024

Opinion

Editorial

After the deluge
Updated 16 Jun, 2024

After the deluge

There was a lack of mental fortitude in the loss against India while against US, the team lost all control and displayed a lack of cohesion and synergy.
Fugue state
16 Jun, 2024

Fugue state

WITH its founder in jail these days, it seems nearly impossible to figure out what the PTI actually wants. On one...
Sindh budget
16 Jun, 2024

Sindh budget

SINDH’S Rs3.06tr budget for the upcoming financial year is a combination of populist interventions, attempts to...
Slow start
Updated 15 Jun, 2024

Slow start

Despite high attendance, the NA managed to pass only a single money bill during this period.
Sindh lawlessness
Updated 15 Jun, 2024

Sindh lawlessness

A recently released report describes the law and order situation in Karachi as “worryingly poor”.
Punjab budget
15 Jun, 2024

Punjab budget

PUNJAB’S budget for 2024-25 provides much fodder to those who believe that the increased provincial share from the...