THIS is apropos of Muhammad Azam Shaikh’s letter ‘Democratisation of taxation’ (Oct 2). I would like to point out that ground realities in our country have hardly been accounted for while dealing with the topic.

Had the writer put in perspective the following facts, the malaise of our tax regime would have a clear manifestation for readers to critically analyse it and suggest meaningful remedial measures.

While dealing with any issue in the backdrop of democratisation, the kind of democracy being practised in our country must be kept in view, i.e. before suggesting any foreign model, one should make sure that democracy involved in that case is on all fours with that of ours.

Let me draw the attention of readers to the fact that our taxation system was ‘democratised’ in 1979 when the then president promulgated the ‘Income Tax Ordinance, 1979’ which was later allowed by our National Assembly to find its place in the statute book without any change in its nomenclature.

The self-assessment scheme of this ordinance was largesse for tax evaders, who were already enjoying immunity from documentation of their business transactions. This is not to say that before this ordinance the taxation system was any better: pocketing by taxation authorities was being heard from the rooftops during that period as well. However, if we go by the book, the system was, by and large, well-thought-out except that it granted specific exemption to the landed class.

There was a law for taxation of wealth, but it was done away with to allow unlimited opportunities for the exploitative class to multiply their wealth.

Apart from wealth tax, there was a rule for obtaining an NOC from the Income Tax Department before transfer of any property.

Had these laws and rules been implemented in letter and in spirit, hardly any loophole would remain open for tax evasion. The said democratisation led to dismantling of these provisions of law, and introduction of a system of tax collection at the source.

This mode of taxation is indirect taxation of sorts because of the incidence of tax shifts to the end-consumer. In short, this democratisation has resulted in making the rich even richer and the poor even poorer.

Now it can be anybody’s guess where further democratisation of our taxation is likely to lead us.

Last but not least, I would like to suggest a Robin Hood model of taxation for our country.

NISAR AHMED ABASSI Larkana