Every developed nation heavily depends on its taxes for development and government funds. Pakistan is the most amazing nation, well maybe there are many more of which I don’t know, which does not pay tax. I asked a friend who has a large garment factory if he paid tax, he burst out laughing and said “pay tax in Pakistan, the money goes into private accounts not on development as happens in other countries, so I just pay the tax collector some money and that’s it.” This is the most common factor of the large IMF loans and other help that Pakistan gets.

According to some reports, only two million people pay taxes in Pakistan, from a population of more than 180 million. Which means only one percent population is in the tax net? What about the other 99 percent? This is not how countries thrive and grow. There should be tight tax laws, and honest implementers to stop the plundering of the nation. The big fish, such as large land holders, factory owners, big businesses should have transparent and clear tax payments and the people should have access to all this information. Every company should post their tax payments on their websites.

There are two types of taxes; namely, direct taxes levied on incomes, profits, fees, wealth, property etc; and indirect taxes, which everybody, unobtrusively pays. These indirect taxes include duties on imports, raw materials, consumer goods and so-called luxury items like cigarettes and cell phones which low-income groups also use. The other group which comes inside the tax net is the salaried person, whose tax in automatically cut before they get the salary, so why not the rich?


Karachi, May 28.