I am shocked and dumbfounded by the sheer lack of even a shred of sense in our great finance minister. In a country like Pakistan where undocumented economy is at least three times the size of documented one, the government should be giving incentives to use formal banking channels to encourage people to shun cash transactions and informal channels. Thanks to the genius of Mr Dar who imposed tax on all banking transaction, now our business and individuals, who have no love lost for formal banking, are less likely to use banks.
This would only encourage cash and informal transactions further. The government is not likely to gain anything out of it as only people using banks would be those already paying taxes and hence would get refund. Others will now have one more reason to shun formal channels for traditional informal ones to evade taxes in general and this ridiculous advance tax. I am now convinced that either our finance minister is completely indifferent to what happens to Pakistan or has no brains for country’s economic and financial needs.
USMAN RAJA
Lahore
