A recently published study prepared by Centre for Investigative Reporting of Pakistan( CIRP) revealed that two-third of lawmakers sitting in our country’s present assemblies did not file income returns for the financial year ended on 30-06-2011. Quite a sizeable number of parliamentarians reportedly do not even have national tax number (NTN). In a country where legislators themselves appear to be violating income tax law, one should not be surprised to note that it has tax-to-GDP ratio is just 9.5 percent, the lowest in South Asia.
The story does not perhaps end here. It is generally perceived that big businessmen also do not pay their due share of income tax to exchequer. A country where legislators as well as big businessmen do not pay their due share of tax to the government, it is very likely that this tendency will trickle down giving the society a tax avoiding culture which is very alarming sign for us as a nation. However, I would like to point out that it is not a rocket science as to how to improve tax-to-GDP ratio. The simple solution is that our political and business leaders should first set examples of paying their due share of tax to the government. The rest of puzzle will be solved automatically.
EJAZ AHMAD MAGOON
Lahore