Federal Board of Revenue (FBR) Chairman Tariq Bajwa has pointed out a very bitter reality about tax collection in the country, saying that there is no culture of tax compliance in Pakistan. Addressing a gathering of students attending a tax fair at the National University of Sciences and Technology in Islamabad, he highlighted the importance of tax collections and asked the students to use social media as a tool to create awareness about tax payment in society. There is a need to hold such tax fairs to create interaction between the FBR officials and the business community.
On another note, Bajwa says that the government is determined to raise the tax-to-GDP ratio and broaden the tax base by adding 100,000 potential taxpayers every year to the tax net. He said that the board added nearly 100,000 new taxpayers last year and a plan is underway to add another 100,000 this year to boost the tax revenues. It is good to use students as the agents of change and promote discussion on social media and also within their circles on different facets of taxation. It was also pointed out during the discussions that Pakistan is one of most frequent borrower of the loan from International Monetary Fund out of its total 199 members, and that the friends of Pakistan are also reluctant to extend any loan to it. According to the FBR, the idea to engage students in creating a tax culture that advocates voluntary tax compliance is conceived following similar exercises in other countries. The change agent campaign will motivate the youth to influence public opinion by engaging their peers, friends and relatives to contribute in nation building by filing correct tax returns and paying their due share of taxes voluntarily.
Tax money plays major role in the administrative affairs of the country and everyone who has taxable income should pay tax. But unfortunately in Pakistan, some people earn billions of rupees, but avoid to pay taxes. On the other hand, the salaried class is the major taxpayer in the country because their tax is deducted at source. There are some other businessmen who absolutely pay no tax and to collect the revenues, the government often imposes indirect taxes which are a burden on common man. The FBR’s initiative to use social media to create awareness about tax compliance is the right step in the right direction.
