The federal government of Pakistan is reportedly considering raising taxes on the salaried class as part of its efforts to broaden the tax base in the face of a high inflation rate. Economic expert Khurram Shehzad expressed his views on the matter, highlighting the impact of financial decisions on the common people and the corporate sector. While acknowledging the seriousness of the stalled International Monetary Fund (IMF) loan program, Shehzad emphasized the need for fair and comprehensive financial reforms.
- The Government’s Plan to Expand the Tax Net:
The government aims to expand the tax net by increasing taxes on the salaried class. This move is seen as a means to generate additional revenue and reduce the burden on the common people. However, economic experts like Khurram Shehzad argue that solely targeting the salaried class may not be an effective solution and could further burden an already taxed segment of the population. - Consequences of Political Mistakes:
Shehzad pointed out that the consequences of political mistakes have historically been borne by the nation and the corporate sector. He criticized the practice of imposing financial burdens on the common people instead of finding more equitable solutions. Shehzad emphasized the importance of addressing the root causes of financial issues and implementing comprehensive reforms that promote economic growth and stability. - The Stalled IMF Loan Program:
The issue of the stalled IMF loan program has added to the challenges faced by the government. Shehzad acknowledged the seriousness of this situation but emphasized that the IMF’s intention is not to impose unjust measures on the nation or the corporate sector. Instead, the IMF aims to improve the country’s financial matters and promote sustainable economic development. - The Need for Fair and Comprehensive Financial Reforms:
Shehzad argued that the resolution of financial issues cannot solely rely on imposing taxes on the salaried class or the corporate sector, as they are already contributing their share through existing tax obligations. He stressed the importance of implementing fair and comprehensive financial reforms that address structural issues, improve governance, and promote investment and economic growth. - Balancing the Burden:
While expanding the tax net is essential for strengthening the economy, it is crucial to ensure a fair distribution of the burden. Instead of solely targeting the salaried class, the government should explore avenues to bring untaxed segments of society into the tax net. This approach can promote equity and avoid further burdening those who are already fulfilling their tax obligations.
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As the government contemplates increasing taxes on the salaried class to expand the tax net, experts like Khurram Shehzad emphasize the need for fair and comprehensive financial reforms. Balancing the burden and addressing the root causes of financial challenges is crucial for achieving sustainable economic growth. By implementing equitable tax policies and promoting responsible governance, the government can create an environment that supports both the nation’s prosperity and the corporate sector’s growth.
