The federal government has chalked up a plan to impose taxes worth Rs 50 billion from the next month. The justification provided is that this is being done to cover up for the tax revenue losses. But would those quarters that are shirking the taxes at the moment be forced into the net? The answers seems in the negative because if the past is any guide, the burden would continue to be borne by the general public, which is a convenient practice to fulfil the ruling classes’ appetite for more cash.
There is also no doubt that more taxes will harm the economy, particularly the middle class, if at all there is such a thing. The influentials have schemes such as tax amnesties to get away with taxes.
Over the years, a consistent deterioration in the standard of living as well as a considerable weakening of the general public’s earning power, courtesy a barrage of price hikes, has led to blizzard of inflation that makes such moves counterproductive. At the same time, the people are being inflicted with fuel surcharge and a whole variety of other such charges added to their electricity, fuel and gas billing, which plainly falls in the category of indirect taxation. The FBR or rather the powers that call the shots have to put their act together; taxation has to be proportionate. Instead of burdening that segment of society that is already under strain, it is time to strike at the defaulters.