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Taxes on masses should be examined, says PEW

KARACHI: The Pakistan Economy Watch (PEW) on Saturday demanded a commission to analyse the impact of increased taxes on the masses and the fragile economy.

The purpose of taxes is to provide resources to run the country, trigger economic and social development and ensure just distribution of wealth but our taxation system is not serving any of these purposes, it said.

The reason behind the dysfunctional taxation system is irrational tax targets, low morale, and political interference, said Dr. Murtaza Mughal, President PEW in a press release.

He said that authorities were only concerned about their targets, which had taken a toll on the masses and the economy.

Squeezing masses and businesses beyond their capacity would never help increase revenue rather it would reduce the collection, he added.

Dr. Mughal said that the tax system should be just, transparent and simple to attract people as millions of dollars were wasted in improving tax machinery which had only deteriorated things.

He said that the authorities were still burdening existing taxpayers and avoiding to find new taxpayers while some sectors were deliberately ignored.

He said that there should be one agency to collect all taxes and the dispute resolution system should be improved as revenue over Rs1.5 trillion was stuck in litigation.

There are millions of commercial and industrial connection of gas and electricity while ninety thousand companies are registered with SECP but only forty thousand file returns which must be noticed.

FBR should be depoliticized, morale and the integrity of staff should be improved, technology should be used to find new taxpayers and a system to penalize corrupt and reward honest should be introduced otherwise situation would remain dismal, he warned.

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