Prime Minister Shehbaz Sharif’s stance on bolstering revenue collection through rigorous reforms within the Federal Board of Revenue (FBR) is a commendable step towards steering Pakistan’s economy towards stability and growth. His assertion at ceremony on Saturday that country has the potential to outpace regional economies with diligence and efficiency resonates with aspirations of the nation.
Rewarding upright officers within the FBR serves as a pivotal strategy to appreciate honest tax collection efforts. It fosters a culture of integrity and accountability within the organisation. However, amidst these efforts, it is imperative to address the root causes of revenue leakage.
The evasion of taxes by sectors such as retailers, real estate, tobacco and others not only undermines fiscal health of the nation but also exacerbates burden on common citizen through indirect taxation, leading to price hikes and economic strain. Hence, it is essential to direct attention towards these sectors to ensure a fair and equitable tax regime. The decision by Pakistan Telecommunications Authority (PTA) to refuse FBR’s demand to block SIMs of non-filers is a prudent move.
The concerns highlighted by PTA regarding adverse impact on social norms, access to communication for education and broader implications on financial transactions are valid and merit consideration. Blocking SIMs indiscriminately could disproportionately affect vulnerable segments of society and hinder essential economic activities. Moreover, complexities involved in tax filing process often deter individuals from fulfilling their obligations.
It is imperative to simplify tax return forms and streamline procedures to facilitate compliance, especially for average taxpayer. Additionally, launching awareness campaigns to educate populace about the importance of tax compliance is crucial for fostering a culture of responsibility. A multifaceted approach is necessary to address challenges faced by Pakistan’s economy. By targeting tax evasion, rewarding honesty, and advocating for simplified processes government can steer the country in right direction.
