MORE reforms are needed to overcome the low income-tax-to-GDP ratio, lower tax base, tax evasion and lack of new source of taxable income. There are too many concessions and exemptions, either permanently notified or extended through SROs.

Moreover, when it comes to taxing the rich, leaders have resisted obeying democratic norms. Income tax forms the major share of direct taxes and is the ultimate source of a balanced and developed society, whereas indirect taxes contribute the chunk of source of revenues.

During the last financial year, the share in the GDP of direct taxes in the national tax revenue was 3.50pc and of indirect taxes 6.40pc.

Big companies pay billions in taxes which are collected from customers through the supply chain, as companies merely act as collectors and consolidators of those tax sums.

About 25 pc tax revenue is collected through direct taxes and the remaining 75 pc through indirect taxes.

Noble Laureate Joseph Stiglitz in his recent book The Price of Inequality has argued that big corporations abuse market mechanism to shift their corporate tax burden to others. A major reason for the market abuse is the asymmetric relationship between well-informed and well-organised business giants and ill-informed and unorganised consumers.

Consumers mostly do not know as to whose burden they are made to carry. Even if some of them realise it, the individual burden is so small that they do not consider it worthwhile to mount a challenge socially or legally.

Thus, there is a need to examine inadequacies of tax administration which require strategic deviation from the comfort zone to a realistic and equitable approach in taxing taxpayers.

Muhammad Azam Shaikh

Advocate, High Court &

General Secretary

Tax Bar Association

Larkana

Opinion

Revival? For whom?

Revival? For whom?

Numerous sets of numbers, not quoted by govt sources, suggest that things are not as dazzling as claimed by those who run the country.

Editorial

Premature alarm
Updated 20 Feb, 2025

Premature alarm

Improvement in headline inflation gives policymakers chance to fix investment policies, implement structural reforms.
Forsaken province
20 Feb, 2025

Forsaken province

AND the endless cycle of violence continues. The brutal killing on Tuesday night of seven Punjab-bound passengers in...
In poor health
20 Feb, 2025

In poor health

THE absence of decent and affordable healthcare in the country continues to ruin lives. An example of this is ...
Out of control
Updated 19 Feb, 2025

Out of control

AS bodies continue to fall in Kurram despite a state-sanctioned ceasefire, one wonders how long local militants’...
Hollow words
19 Feb, 2025

Hollow words

IT is not uncommon for politicians to resort to the use of hyperbole in order to boost their public standing. ...
Migration matters
19 Feb, 2025

Migration matters

THE grass, it seems, did appear greener on the other side to millions of people as evidenced by the latest UN ...