Party Chief Nawaz Sharif has said while addressing a public gathering in Sheikhupura on December 11 that the PML-N will not support the federal government on the issue of the Reformed General Sales Tax (RGST) and will not allow the government to increase the burden on the masses. Nawaz Sharif took a right stand and suggested the Pakistan Peoples Party-led government should focus on eliminating corruption instead of increasing taxes. He urged the need for a revolution and the need to combat the evils faced by the people. Currently the IMF team is present in Islamabad to ensure implementation of tax reforms. The reforms in the general sales tax to be introduced through proposed General Sales Tax Act, 2010 would help achieve the desired target of documentation of economy and would remove exemptions available to various sectors. Some informal sectors are also to be brought under GST regime. Documentation required through the proposed legislation would not only document each and every transaction after import or local production at all levels but also to help document annual turnover of the businesses for determination of income tax liability of the registered entities. There is no doubt the State is in dire need of increasing its tax revenues by broadening its tax base which has increasingly became distorted and narrow-based due to poor government policies. But it is duty of the government to keep the tax burden as low as possible and increasing the numbers of taxpayers simultaneously ensuring that taxes are applied equally and fairly to everyone. The government should rather reduce tax rates on income and business profits that help to sharpen incentives to work and create wealth in the economy as a strategy to enhance long-run growth. The tax base should be broadened by levying direct taxes on pay as you earn basis instead of levying frequent indirect taxes like RGST which is highly inflationary and passed on by the suppliers to the final consumers. The overall taxes that a person pays can be reduced by proper planning and making appropriate adjustments; it should be governed by peoples ability to pay, that is, wealthier individuals or firms with greater incomes should pay more in tax while those with lower incomes should pay comparatively less and every sector of the economy should be taxed. The current system of taxation is completely ineffective which needs to be revolutionized by bringing more people in the tax-net. Corrupt and immoral characteristics sums up the personal attributes of the vast majority of Pakistani politicians and generally the closed club of Pakistans ruling elite, barring a few exceptions. They formulate the policies keeping in view their personal interests instead of that of the nation. Policies are modified even for one person or one class. Due to these reasons a good tax culture could not take root in Pakistan. The elite club is always exempted from all sorts of taxes. The MNAs, MPAs, minister and other government dignitaries want taxes from the poor public, but themselves do not pay a single penny. Pakistans taxation system is characterized by widespread tax-evasion. Annual evasion by the elite club comprising politicians, military and civil bureaucracy, and some businessmen stands near hundreds of billions of rupees. There are a number of ministers who pay less than Rs 10,000 as their annual income tax. The state is responsible to provide basic fundamental rights and facilities but has totally failed to fulfill expectations of the poor people. People are more frustrated when they see the ruling elites social life and their living standards. Due to our constant wrong use of vote or avoiding its use, corrupt politicians have created the issue of survival of Pakistan and Pakistani society. On the one hand people are committing suicides due to starvation and financial hardships and on the other, assets of a few politicians, bureaucrats, and some businessmen are increasing with the hour. SHAUKAT MASOOD ZAFAR, December 12.