27- TAXATION SYSTEM

An outdated and defective system for the collection of taxes exists in our country. For that reason the country is deprived of billions of rupees in taxation every year. Due to the inadequate policies, billions of rupees find their way into the pockets of government officers and bureaucrats rather than the government treasury. What is immediately needed is to establish an effective and simple system which will tend to minimise the tax burden upon the people on one hand but controlling tax evasion on the other, thereby, creating an increase in tax recovery.

Furthermore, for the collection of taxes in a better way, and to eliminate corruption immediate steps should be taken to formulate a simple and effective system where room for corruption is minimised. Instead of imposing exorbitant new taxes without due consideration there should be a levy of taxes that are endurable to the tax payers, so the tax payer would not be tempted into corrupt practices and tax evasion.

It is absolutely essential to extend the tax recovery framework to all classes of society with the aim of increasing State income and reducing the burden upon poor people. The system must be extended to all classes of people so they can play their role in contributing to the State exchequer. Unnecessary burden upon a particular class or a few classes must not be imposed. In this regard the enforcement of tax on agricultural income would be a step in the right direction.

The MQM point of view in this regard is that instead of increasing the burden upon existing taxpayers to meet the increased monetary requirements of the country, a positive policy should be introduced to promote and increase production in the country. The increase in productivity would subsequently lead to an increase in imposition and recovery of taxation revenue. Instead of concentrating on the levy of further taxes, efforts should be concentrated on making tax recovery efficient, enabling the country to increase its Revenue income.

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