IT is assumed that the primary purpose of all tax-related amendments is to incr-ease woefully low tax collection. The recent proposals in this regard may serve that specific purpose to some extent, but not to the required level.

The amendments propose to impose many restrictions on the non-filers of tax returns, now to be called ‘ineligible’. Among other things, they will not be able to buy a car of more than 800cc, will not be able to transfer immovable prop-erties, and will not be able to carry out banking transactions. These steps will certainly increase the number of filers, but not necessarily increase tax collection. People may file nil returns or with nominal income.

Only recently, the report ‘FBR chief carps at under-filing elite’ (Dec 18) quoted the chief of the Federal Board of Revenue (FBR) as saying that the top one per cent, or some 670,000 top earners, were not paying their due taxes. Ironically, the proposed amendments do not even plan to touch them.

It is surprising that despite the infor-mation available with the FBR, no action against the big evaders is being planned. Taxing the big evaders should not be a tricky task. All one needs is the will to proceed.

The real estate, the big cars and the huge expenditure incurred by the elite can actually facilitate the FBR machinery to recover proper tax collection. The real estate and cars are registered, and it should not be difficult to find out their owners.

The FBR can trace expenditure on travel, fabulous weddings and dozens of such functions that are held in luxury, where even flowers are imported from abroad.

All such functions are publicised in the newspapers for all to see. The entity that does not see it is the FBR, because it is more interested in looking the other way.

Shamim Ahmad
Islamabad

Published in Dawn, December 26th, 2024

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Predatory taxation

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