The recent problem of lack of financial resources badly affected the country and government was bound to request International Monetary Fund (IMF) to do to agreement for resuming the program. Along with other conditions, IMF put the conditions on the government for financial help, the expansion on the tax base was one.
The IMF Managing Director Kristalina Georgieva said that there is a need for enhanced efforts to extend the tax base, improve public financial management and increase progressively and efficiency in delivering quality infrastructure.
Contrary to it, the government of Pakistan has provided a big relief to the retailers. This step may badly harm the efforts of stabilizing the country economically.
?PDM led government has deleted an important condition for integration big retailers with FBRÂ’s system through the Finance Act 2023.
Surprisingly, at the same time, the government has burdened the salaries people with collection of additional taxes. By this unexpected and understandable measure of the government, the popularity of which is already at stake, around 4,800 big retailers will benefit which means, about 53 percent of the 9,082 big retailers registered with the central tax collecting authority will no longer be required to file their monthly sales tax return statement.
This action of FBR has created restlessness among the government and private employees.
GovernmentÂ’s announcement to clarify the situation is still awaited to burden the already tax paying people of Pakistan. The question also arises that during the current financial year, Pakistan has to pay more than $20 billion external debts then why the benefit of tax relief has been given to a particular class. ????
However, the issue of tax evasion in Pakistan has been of vital importance since the inception of country and no government for last about 74 years could succeed in the collection the desired tax from the those who should pay it.