Increasing Pakistan's tax net: Way forward
"I do not want to increase taxes, I just want taxes to be paid honestly". These words of Narendra Modi can be best utilized and are true depiction of the way forward of increasing Pakistan’s net tax. But first, let shed an ink on the importance of the tax collection system. Taxes raise the standard of living and foster economic growth in the country. Government brings taxes to the fore to provide a conducive environment for business activities in the country and spend this money on the welfare of the people including education, health, and employment. However, at current times, Pakistan is facing the brunt of a severe economic crisis, and the decreasing tax base is one of the reasons behind this grim situation. The question is why Pakistan’s tax net is eminently low. Some reasons behind it are the weak enforcement mechanism of tax collection, illicit tobacco trade and weak monitoring on the minimum retail price of cigarettes, financially weak local urban government framework