The nationwide strikes against the government’s tax policies, led by trader unions of every conceivable type, illustrate why Pakistan has struggled to broaden its tax base over the years. Pakistan’s failure in this regard is not due to a lack of intent but rather the fierce resistance it faces from business owners who seek to maximise their own profits at the expense of the state’s development and the nation’s overall well-being. This resistance is evident in the strike leaders’ opposition to the FBR’s Tajir Dost Scheme, where they refuse to pay taxes while portraying themselves as the common man burdened by excessive taxation.
However, this portrayal is misleading and needs to be scrutinised. These traders cannot be considered the common man by any stretch of the imagination. Most of them earn enough to be categorised as middle class or upper middle class.
It is this segment of business owners that resists taxation the most. If they truly cared about the common man, they would support taxation not only for themselves but for other businesses and trade sectors as well. A well-funded government is better equipped to implement support programmes, poverty alleviation initiatives, and create jobs that can lift the destitute out of their current conditions. The FBR’s statement, asserting that while it is open to discussing the issues, it will not retract the scheme, is precisely the stance needed. The path taken by the PML-N is a difficult one. No government wants to alienate the economic class, and the PML-N has chosen to do so despite this class being historically its strongest supporter.
It must now stand firm and continue along the course it has set. Throughout our history, only one government needs to establish a proper tax regime for future generations to benefit from it. If the PML-N perseveres down this challenging path, it has the potential to be remembered in history.