PRIME Minister Shehbaz Sharif’s consistent focus on reforming tax machinery deserves appreciation and strong public support.
In a high-level review meeting on Tuesday, the Prime Minister ordered immediate and effective implementation of reforms with a pronounced focus on digitisation and automation.
These reforms are not only long overdue but are critical to correcting decades—indeed, 70 years—of systemic mismanagement and inefficiency in the country’s revenue collection apparatus.
The PM’s remarks reflect a decisive stance: while honest taxpayers will be facilitated, those involved in tax evasion will face uncompromising legal action.
This clarity in policy direction is the need of the hour.
We can no longer afford to let a parallel, undocumented economy flourish at the expense of those who comply with the law.
It is the salaried class and other documented sectors who continue to bear the brunt of the country’s limited tax base—a burden made heavier by the presence of large-scale evasion.
By extending surveillance mechanisms previously applied to the sugar industry to other sectors such as tobacco, beverages, cement, steel, hatcheries, and poultry feed, the government is moving toward a more equitable and transparent tax system.
These steps are not just administrative in nature—they represent a broader attempt to shift the burden of revenue generation toward those who have long remained outside the formal tax net.
With the budget due early next month, this is also a crucial time to rebalance tax policy.
The salaried class, often seen as the most reliable source of direct tax collection, has faced rising financial pressure due to inflation and high taxes.
Providing them with meaningful tax relief should be a priority for the government.
At the same time, strict enforcement must target those who have historically evaded taxes, ensuring that the honest are not penalized for the dishonesty of others.
It is also important to recognize the broader economic context.
Our GDP growth rate of 2.7 per cent—barely above the population growth rate—signals stagnation, even if it reflects some improvements in sectors such as livestock, electricity, and gas.
The government must prioritise the facilitation of productive sectors—such as agriculture, manufacturing, and services—through incentives, infrastructure investment, and policy stability.
Only through inclusive growth can job opportunities be expanded for a rapidly growing population.
