Says the \u2018ruling elite\u2019 in Pakistan never wanted a tax culture to take root because they wanted to continue their lavish lifestyles
\n Islamabad
\nPrime Minister Imran Khan on Tuesday said that in the absence of a \u201ctax culture\u201d in Pakistan, the very country\u2019s sustainability is at stake.
\nHis remarks came during the launch ceremony of the Federal Board of Revnue\u2019s Track and Trace System for the sugar industry.
\nHailing the introduction of the system, which he observed had been a struggle by the FBR since 2008, the prime minister said that it had already been rolled out for the tobacco industry and would now extend to the sugar industry as well.
\nHe said there are plans to implement it for the cement, fertiliser and in the rebar (iron bars used to reinforce and strengthen concrete) sectors.
\nThe premier said this positive development today will have \u201cfar reaching consequences\u201d.
\nSpeaking of the challenges Pakistan faces, he said the foremost issue that the government has to deal with is that \u201cit does not have enough money to run the country, which is why we have to take loans\u201d.
\nHe likened the situation to a household which continues to struggle due to financial constraints and never is able to advance since it never has enough savings to invest in the future.
\nPM Imran Khan said that in Scandinavia, the tax-to-GDP ratio is 50%, whereas in Pakistan, \u201ca tax culture was never created\u201d.
\nHe said that evading tax was \u201cnever considered to be a bad thing\u201d.
\nWhy was a tax culture never developed in Pakistan?
\nThe prime minister said that he had analysed the reasons for this. One was that there had been the \u201ccolonial culture\u201d in Pakistan in the past. \u201cWhen there was foreign rule, people would almost consider it a good deed to not pay taxes,\u201d he said.
\nHe said there were those who were of the view that the tax will be collected and spent on them, but others saw it to be a pointless exercise, thinking that it will be taken abroad, \u201cso what\u2019s the use?\u201d
\nPM Imran Khan said another reason behind the lack of a tax culture is that after independence, the \u201cruling elite\u201d in Pakistan never wanted it to take root, because they wanted to continue their lavish lifestyles without being questioned.
\nHe said that in other countries, for instance England, leaders are constantly made aware of the fact they are spending the people\u2019s money paid through taxes.
\n\u201cThe ministers of a country with a population of 60 million and whose GDP is 50 times that of ours, have been ordered to travel via economy class if the flight duration is less than five hours,\u201d the premier said.
\nHe said even the British prime minister, when he went to the US, stayed in a room at the embassy so as to avoid unnecessary expenditure, while drawing comparisons with Pakistani prime ministers who spent \u201c10 times as much\u201d on their foreign tours.
\nThe prime minister explained that this culture is found even among students abroad who point out whenever the taxpayers\u2019 money is being spent wisely or unwisely. \u201cSo the people are conscious and the government, too, is very aware of the fact that they are accountable to the people.\u201d
\n\u2018Pakistan\u2019s sustainability at stake\u2019
\n\u201cIt is so important that this culture is developed in Pakistan because our very sustainability is at stake here,\u201d he said, adding that in between 2008 and 2018, Pakistan\u2019s debts saw a four-fold increase.
\n\u201cIt astonishes me. These people should be punished. In 10 years, the debt which stood at Rs6 trillion soared to Rs30 trillion,\u201d the prime minister added.
\nHe said that all the while, \u201cno big projects which could benefit the country were introduced\u201d.
\n\u201cSo our challenge was tax collection and I laud the FBR team for a record tax collection,\u201d he said, adding that the government aims to take it to Rs8,000 billion.
\nPM Imran Khan said, of this amount, Rs3,000 billion will go to debt repayments. \u201cAnd we will be left with Rs3,000 billion for a population of 220 million,\u201d he said, adding that their health, education needs and infrastructure needs will need to be served.
\n\u201cAnd then we need to invest, in research and agriculture, which has so much potential,\u201d he said.
\nThe prime minister said without enough money to support all these projects, the government ends up having to take loans \u201cand we remain in this vicious cycle\u201d.
\n\u201cThe only way it will break is if we ramp up our tax collection,\u201d he said, adding that that will only be possible with the use of technology and the track and trace system marks a big step in that direction.
\nSpeaking of the youth, he said that they will end up being the \u201cengine of growth\u201d for Pakistan and will need to be invested in, which is only possible through more earnings.
\nThe premier said that the government is working full throttle to bring a change when it comes to the luxury lifestyles of the ruling elite for which an austerity campaign is in full swing. Pointing in the distance, he said the expenditures of two offices of the FBR have \u201cwitnessed a reduction of Rs1.1 billion, despite inflation\u201d.
\nHe said that when the people see that money is being spent on them and taxes are for the welfare of the people, the change in perception will come automatically.<\/p>\n
Track and Trace System
\nEarlier, a statement issued by the Prime Minister\u2019s Office said that the system will also be used to monitor the goods\u2019 movement from production to sale in major sectors like fertilisers and cement in the next phase.<\/p>\n
\u201cThe scope of electronic surveillance will extend from the production of goods to the utilisation by the consumers, which will enhance the country\u2019s revenue generation, bring transparency in the system and prevent tax evasion,\u201d the statement said.<\/p>\n
After implementing the track and trace system in the tobacco sector, the FBR is now rolling out the electronic monitoring in other major sectors like sugar, it adde.<\/p>\n","protected":false},"excerpt":{"rendered":"
Says the \u2018ruling elite\u2019 in Pakistan never wanted a tax culture to take root because they wanted to continue their lavish lifestyles Islamabad Prime Minister Imran Khan on Tuesday said that in the absence of a \u201ctax culture\u201d in Pakistan, the very country\u2019s sustainability is at stake. His remarks came during the launch ceremony of […]<\/p>\n","protected":false},"author":2,"featured_media":229098,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[772,20,214],"class_list":{"0":"post-229088","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news","8":"tag-culture","9":"tag-pakistan","10":"tag-pm"},"yoast_head":"\n