The culture of simplicity should be promoted at the government level

The culture of simplicity should be promoted at the government level

We will complete our program with the IMF, we will have to sacrifice politics to save Pakistan, we will get the country out of trouble.

These views were expressed by Prime Minister Shahbaz Sharif while addressing the launch ceremony of Prime Minister Youth Business and Agri Loans Scheme. Learn from the past and move forward.

On the other hand, according to sources, Pakistan has assured the IMF to achieve the target of tax collections including petroleum levy and gas price hike.

The Prime Minister has painstakingly presented the correct picture of the economic situation before the people.

Issuance of loans is a good practice to get the youth on their feet, as educated youth are going abroad in large numbers and this process is called "brain drain" which accelerates with time. Coming, the government has to stop this process immediately.

Rising cost of living has pushed people into poverty, refusing to acknowledge the worst economic crisis conditions.

Due to political reasons, our government is refraining from taking tough but necessary measures while the IMF is under pressure to accept its conditions as "restrictive" while increasing the tax rate for the government to increase inflation. It has become difficult and if the demands of the IMF are accepted, it will undoubtedly increase the hardships of the people, but the government has no choice but to swallow this bitter pill.

Before the negotiations, we have to take some preliminary steps which include devaluation of rupee and increase in prices of petroleum products. A decline in national income (revenue collection) in recent months has made economic reforms imperative.

Certainly, the restoration of the IMF program is not a solution to the current economic problems facing Pakistan, but it will play an important role in settling matters with other financial institutions. Before it's too late.

There is also the fact that the salaried taxpayers of the country are paying a significant share of their income compared to the non-salaried segment of the population which is largely informal.

The tax and service delivery structure in Pakistan has been in shambles for the last few years, and if not addressed, it will collapse completely. The present tax system of Pakistan can be said to be for the poor by the rich.

80% of the indirect tax revenue can be estimated from the end user i.e. the poor people are paying the tax. A person earning 25 thousand rupees per month is also paying the same tax on eggs, double bread, clothes and other items as a person earning 15 lakh rupees per month.

If the tax was based on income, Pakistan's tax revenue would have been very different from what it is now. On the other hand, tax rebates, refunds and other forms of subsidies are also meant for the rich and not for the poor. The subsidy given on electricity, gas and petrol is nothing in addition to the above mentioned subsidies. Tax-related institutions, collection systems and related bureaucracy are also part of the problem.

FBR needs to be reformed such that the tax collection function is separated from fiscal policy and planning, tax rebates exemptions etc. Tax payment systems and procedures should also be simplified. FBR officers prefer to spend time on small taxpayers rather than collecting tax from big fish or perhaps the big fish are out of their reach.

It should also be estimated how much time FBR officers spend on small tax payers. Governments in Pakistan have been trying to widen the tax net, various amnesty schemes have been given for this purpose but with no positive results. Not exported. Even today the number of active tax payers is only a few lakhs which is 1% of the total population and more than 80% of the revenue is collected through indirect taxes.

There are three main reasons why the tax net is not widening. Public distrust of governments, inequality in the tax system and archaic tax collection systems. Tax department officials have a police-like attitude towards the business class and traders, if their behavior is polite it can help people to build trust in the government.

Over the past two decades, if not more, every government has either increased corporate taxes or imposed 'one-off taxes' that are often permanent rather than temporary, to expand their revenue base. Incentives in the economy are affected and this discourages investment.

Capital continues to leave the formal economy due to heavy taxes while the informal economy thrives as evidenced by the increase in cash in circulation over the past five years.

Given the perverse nature of privilege enjoyed by a certain class, instead of reinvesting in the economy for economic reforms and creating more jobs, unproductive measures are seen that render economic growth meaningless and if the recent Looking at the reforms (efforts), especially through tax measures, the state is moving from the formal economy to the informal economy as done by previous governments.

Over the past decade, the size of the informal economy has grown substantially as can be seen from the increase in cash in circulation as well as the ratio of private sector reserves to public sector reserves as the private sector has outpaced the formal economy. As a result, tax collection in real terms continues to shrink.

The lack of policy continuity and consistency has pushed private capital to a point where there is no trust in the government and the general perception is that the government punishes taxpayers rather than tax evaders.

Tax payments are shrinking and if this trend continues, the time will soon come when the government will only tax the public sector and a parallel economy will have to be created while the real economy will be largely informal (undocumented) in nature. .

Bad policy measures bear the brunt of the salaried class, who pay the highest taxes in the list of taxpayers and who have not only seen their real incomes decline due to persistent inflation, but are now living in an environment I will also pay higher taxes where inflation is at an all-time high

This will significantly reduce real income and purchasing power. People pay taxes on their income as forced collection and that is the reason why tax evasion is attempted wherever it is possible to pay taxes. If you look at the lifestyle of Pakistan's elite, it appears that Pakistan is a poor country. No, it is a developed country.

These extravaganzas, red carpet receptions and outings. The establishment of Pakistan became possible after the hard work and long struggle of the founder of Pakistan Muhammad Ali Jinnah. After the establishment of Pakistan, he not only exhorted simplicity and frugality through his edicts, but also followed it himself as the Governor General.

Today, our rulers invite hundreds of parliamentarians to a lavish feast on the occasion of passing the budget or passing an important bill. And a variety of foods are enjoyed. Crores of rupees bribes are paid to government and coalition party members in the name of development fund, while our current rulers before coming to power equated distribution of development fund with corruption.

Due to this double policy, our beloved country is going through the worst period in history. If we want to establish a system based on justice and law. So the personalities sitting in the halls of power will have to sacrifice. The nation's money must be used as a trust. An attitude of avoiding unnecessary pomp and show should be adopted

Living nations can achieve their destiny only by following the footsteps of their predecessors. Now this country is not in a position to afford more such royal expenses and if Pakistan is to be taken out of the trap of debt, it is the first responsibility. The onus is on our government to get the people out of the debt crisis, and play a role in putting the country on its feet by formulating its policies.

This is good for everyone, if the country and the nation are to go on the path of development, then the politicians have to solve their issues with understanding.