More than 70 taxes administered by 35 agencies have made the system a

labyrinth, with umpteen forms of taxation and the crisscrossing of several

jurisdictions leaving the masses behind
It is the man on the street who ultimately has to bear the brunt through
indirect taxation
Just as democracy has evolved, taxation too has undergone a
transformation. But it is a continuous trial-and-error process, especially at
the federal level, and it has pushed the whole system into an unfortunate
downward slide in terms of tax-to-GDP ratio, which in our case ranks
among the lowest when compared to other developing nations

The menace of the undocumented economy — and its attendant ills such as
money laundering and terror financing — can be contained through a
verified registration mechanism that, among other things, actually revives
efforts to broaden the tax base. A genuine effort towards this end, instead of
the usual platitudes, would go a long way in substantiating tax collectors’
assessments through corroborated data.

Paying taxes, as well as collecting them, has never been a pleasant task
anywhere in the world. However, in our case, we also lack awareness of the
benefits of paying taxes. Most people with taxable incomes have no idea
that if they file their tax returns they can claim refunds of large amounts
that have been withheld by the banks, or sums that they have had to pay on
the sale or purchase of immovable property, or money deducted on cellular
phones bills, etc

On the one hand, the public’s concern that those in the corridors of power
are recklessly spending the hard-earned money of taxpayers needs to be
allayed. On the other, civil society and academia have a role to play in
improving Pakistan’s tax culture. It would be a positive step to remind
people to always ask for receipts whenever they pay for goods and services.