The recovery of Rs34.5b by the federal government in just four weeks, following the vacation of stay orders by the high courts in cases related to income tax on banks, represents a remarkable achievement.
This success is attributed to clear vision and leadership of Prime Minister Shehbaz Sharif, whose proactive stance in urging the courts to expeditiously dispose of tax-related cases and his directive to form a competent legal team played a pivotal role.
This serves as a powerful reminder of importance of strong leadership and a proactive approach to fiscal matters.
Last month also led to the recovery of Rs23 billion following verdicts by Sindh High Court, and an additional Rs11.5 billion following Lahore High Court’s ruling.
This outcome is undoubtedly encouraging yet long-term success of Pakistan’s economy hinges on much more than individual cases or short-term victories.
The core issue remains the need for reforms in the country’s taxation structure.
Moving forward, the focus must remain on expanding the tax base to ensure that every sector of the economy contributes fairly to nation’s revenues.
This is not merely about ensuring fair tax collection but also about moving Pakistan closer to economic self-reliance, reducing its dependence on foreign loans and aid, and building a sustainable fiscal foundation.
One of the most pressing concerns is the overburdened salaried class, which has been carrying an unfair share of the tax load for years.
The middle class has long been the backbone of country’s tax system, while other sectors often evade their tax obligations.
With improvement in tax collection, it is imperative that burden on salaried class be alleviated.
