Unrealistic tax targets damaging economy: PEW

The Pakistan Economy Watch (PEW) on Sunday said unrealistic tax target has become a threat to the troubled economy.

The policy of pressing taxpayers to meet unrealistic targets has resulted in widespread resentment among the business community which should be reconsidered, it said.

Revenue cannot be enhanced by highhandedness of the authorities as economic contraction and discouraging imports has its cost, said Dr. Murtaza Mughal, President PEW.

Unnecessary focus on existing taxpayers and over-zealousness crackdown on evasion has not served any purpose but it has reduced revenue and it is resulting in the exodus of businesses and flight of capital, he added.

He said that suppressing demand has helped the government reduce imports by ten billion dollars which has also reduced revenue thus making the achievement of target impossible.

Dr Murtaza Mughal said that a policy is needed to trigger investment which is at the lowest ebb due to the fear among the investors.

He said that the country is facing problems because of policies of the successive governments to prefer real estate, trading, and speculation over the industry to create a false impression of economic improvement which took a toll on the economy.

How can the country progress when the manufacturing sector was overburdened with over 75 percent of total tax collection, he questioned.

The campaign against corruption launched fifteen months back has proved wastage of time and resources, therefore, it should be discontinued.

In: UncategorizedAuthor: pakistaneconomywatch