The Pakistan Economy Watch (PEW) on Saturday demanded a commission to analyze the impact of increased taxes on the masses and the fragile economy. The purpose of taxes is to provide resources to run the country, trigger economic and social development and ensure just distribution of wealth but our taxation system is not serving any of these purposes, it said.
The reason behind the dysfunctional taxation system is irrational tax targets, low morale, and political interference, said Dr. Murtaza Mughal, President PEW. He said that authorities are only concerned about their targets which has taken a toll on the masses and the economy.
Squeezing masses and businesses beyond their capacity will never help increase revenue rather it will reduce the collection, he added.
Dr. Murtaza Mughal said that the tax system should be just, transparent and simple to attract people as millions of dollars have been wasted in improving tax machinery which has only deteriorated things. He said that the authorities are still burdening existing taxpayers and avoiding to find new taxpayers while some sectors are deliberately ignored.
Dr. Mughal said that there should be one agency to collect all taxes and the dispute resolution system should be improved as revenue over Rs1.5 trillion is stuck in litigation.
There are millions of commercial and industrial connection of gas and electricity while ninety thousand companies are registered with SECP but only forty thousand file returns which must be noticed.
FBR should be depoliticized, morale and the integrity of staff should be improved, technology should be used to find new taxpayers and a system to penalize corrupt and reward honest should be introduced otherwise situation will remain dismal, he warned.