The tax challenge

Description

This article examines the structural weaknesses of Pakistan’s taxation system, including its low tax-to-GDP ratio, large informal economy, reliance on withholding taxes and limited taxation of property, agriculture and influential commercial sectors. It argues for broadening the tax base, formalising economic activity, improving federal–provincial fiscal coordination and strengthening transparency and accountability. The article advocates a more progressive system that raises sustainable revenue while reducing the disproportionate burden on salaried, middle- and lower-income groups. (The News International)