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Home Op-Ed Editorial

Reforms in tax collection system

byDr. Aftab Afzal
14/02/2018
in Editorial, Latest News, Op-Ed
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The government is still far from introducing structural reforms in the tax collection system aimed at not only to enhance tax net, but also rationalize the tax rates and plug the loopholes in the tax collection process. The recommendations of the Tax Reforms Commission are also awaiting implementation by the Tax Implementation Reform Committee led by none other, but Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan. As it always happened in the past, the taxpayers are reportedly not taken on board by the authorities who matter. In the absence of any representation by the private sector, the process of taxation becomes a futile exercise and that also at the cost of the taxpayers. The recommendations extended by the business community are ignored most of the time if there are any. Ultimately, the game of hide and seek between tax authorities and taxpayers starts. In the current situation, a committee represented by the private sector, which has identified several areas of concerns, has not been taken on board. No one knows what the delays mean in the government circles, but the situation is shrouded in mystery.

Though the political instability also has always its share of troubles in the making and breaking of laws, and the recommendations for introduction of forensic audit for major companies is still in the pipeline. The first step toward structural reforms should be to simplify the tax collection process. It should be as simple as paying utility bills every month. When authorities focus their attention on a particular sector to ensure full implementation of tax laws, the sector loses its utility. The tax collection system cannot be improved until laws are made to protect the businessmen from any kind of harassment. The laws should be equally applicable on all sectors of the economy and harassment of a businessman should be regarded as a crime. In most of the case, the potential taxpayers are ready to come into the tax net, but fear of exploitation and misuse of authority by some corrupt elements in government agencies force them to take other methods and avoid to become part of the tax paying community. The number of taxes also needs to be curtailed and the game of this tax and that should end. A serious national discussion on the issue is the need of the hour.

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Wednesday, 14 February 2018

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