Dr. Fahad Qazi
A Brief Overview !
The strategies to document the economy of Pakistan are multi-faceted. Firstly, it is necessary to improve the institutional capacity of the Federal Board of Revenue (FBR) to ensure that tax collection is efficient and effective. This means ensuring that the FBR has the necessary resources, skills and expertise to accurately assess and collect taxes. Therefore, civil service reforms coupled with administrative reforms are critical for FBR. Secondly, it is important to encourage voluntary compliance by offering incentives such as simplified tax procedures and lower tax rates. Thirdly, improving tax administration, including innovative methods such as electronic filing and payments of taxes, can improve transparency and efficiency in tax collection. Hence, coding & recoding of substantive & procedural laws are essential for taxation reforms leading to economic reforms.
Documentation is critical for taxation as it allows for greater accuracy in the assessment and collection of taxes. When an individual or business files their tax returns, they are required to disclose their income and expenses. The documentation that accompanies these disclosures serves as physical evidence, which makes it easier for tax authorities to verify the information provided by taxpayers. This not only reduces the risk of tax evasion by taxpayers but also improves the effectiveness of tax audits by tax authorities.
Don’t forget to Subscribe our channel and Press Bell Icon.
To bring all incomes under the tax net, Pakistan needs to implement a comprehensive tax policy that targets all income sources including agriculture, real estate, and other sectors outside the traditional tax net. The government can also incentivize informal workers to register by offering special tax breaks and simplified registration procedures.
In terms of taxation reforms, the government could consider reducing the income tax rates for low earners and increasing the tax rate for high earners. The government can also consider simplifying tax procedures by reducing the number of different taxes and ensuring that tax forms are easy to understand. Another effective reform could be to increase the use of technology in tax administration, with electronic payments and filings, which will allow for greater transparency and efficiency in the tax collection process. Overall, these measures will increase revenue collection and help the government to strengthen the economy.
آن لائن رپبلک پالیسی کا میگزین پڑھنے کیلئے کلک کریں۔
Lastly, Pakistan needs reforms & restructuring of economic sectors. Therefore, political stability & consistent policies are essential. A functional & people representative government is always in a better position to reform the system.
