At IMF's recommendations once again, reformed GST is being imposed which'll mean further inflation for the ordinary Pakistanis who are already struggling to survive. To increase the much debated "tax to GDP ratio", why don't we never even consider to tax the rich directly? As I can bet & prove that the poorest of the Pakistanis are paying far more taxes through indirect taxation without even knowing than what most of the elite class members are paying in the current scenario. We need to convert the current regressive taxation system into a progressive one to make life easier for the masses. Progressive Taxation means taxing the rich through direct taxes and lowering or eliminating the indirect taxes to move towards a progressive welfare state. Why taxing the poor ordinary masses all the time?
Only 13% of the total revenue is collected in terms of direct taxes while 87% of the total revenue is minted not collected through indirect taxes. And mostly people don't even know, how much they are actually made to pay from their hard-earned money to keep these oppressive civil & military forces in rule.
Pakistan has one of the lowest effective tax rates in the world, equal to about 9 percent of the value of the country's economy while the United States collects more than three times as high at about 28 percent. One of the reasons Pakistan's rate is so low is because many people avoid paying taxes. Fewer than 2 percent of the country's 175 million citizens pay any income tax AND MIND YOU, mainly it includes the govt servants who are somehow forced to pay taxes through direct deductions. Some sectors of the economy like agriculture — a major money maker for the elite — are totally exempt from tax, and the rich have pushed to keep it that way.
As Henry Home (Lord Kames) says, a goal of taxation should be to “Remedy inequality of riches as much as possible, by relieving the poor and burdening the rich.”
Revenues, in addition to finance public funding, meant for distributive justice, which is an important function of tax policy. Economic justice relates largely to distribution of tax burden and benefits of public expenditure. In Pakistan we are moving from progressive taxation to regressive taxation. It is a dangerous step that is bound to create ever-widening gulf between the haves and have-nots in a volatile society that is already divided on economic, geographical and ethnic lines. A successful tax system must reduce inequalities through a policy of redistribution of income and wealth. So point I want to make is that the government should TAX THE RICH & SPEND ON POOR for a PROGRESSIVE MODERN WELFARE STATE.
NOTE: Friends & foes, I am looking forward to your valued feedback & suggestions in this regard. Thank you
اندھیری رات ٹھکانے لگا کے آتے ہیں
چلو کہ اپنی صبح کو جگا کے آتے ہیں
سبھی جو مان رھے ہیں، بہت اندھیرا ھے
چراغ جوڑ کے سورج بنا کے آتے ہیں
ہجومِ شہر پہ سکتہ کہ پہل کون کرے
صلیبِ شہر کو آؤ سجا کے آتے ہیں
یہ رات روز جو ہم سے خراج مانگے ھے
ہزار سر کا چڑھاوا، چڑھا کے آتے ہیں
نہیں ھے کچھ بھی بچا اب، بجز یہ زنجیریں
اُٹھو یہ مال و متاع بھی، لٹا کے آتے ہیں
ஜ۩۞۩ஜ اِبنِ اُمید ஜ۩۞۩ஜ