There is much furore surrounding taxation these days. There is no doubt that the Pakistani tax system is in dire need of reform, given that many of its elements are regressive and inefficient. The primary problem is the fact that the rich are not taxed. The rich in this country include not only the urban elite but the feudals whose agricultural incomes would put corporate tycoons to shame. Another untaxed reserve of unchecked wealth is none other than our very own politicians who rank as some of the lowest paying tax members of Pakistan.
But there is another issue that we keep ignoring in these discussions. While who is taxed is a prime concern, the fact as to how the collected tax is used is a bigger concern (and it becomes ever more pressing given our stellar rise in rankings in the Transparency International Report). Corruption and squandering tax money is one of our major problems as reports of FBR show that our tax collections have never been meager despite the problems with the reach and scope of the tax net. It is highly important that we consider a mechanism for efficient and transparent allocation of taxes so that tax funds can be kept away from the scourge of corruption.
MARIAM HANIF
Lahore
