Islamabad: Although the International Monetary Fund (IMF) has appreciated the doubling of Pakistan’s tax revenue, domestic economists have expressed reservations about this development. They say that this increase is artificial because there has been no major change in the infrastructure or tax net, but the burden has been placed only on the salaried class and industries.
According to the IMF, Pakistan’s revenue has increased from Rs 9.6 trillion to Rs 18 trillion. However, experts say that the real reason for this increase is the continuous increase in tax rates, especially sales tax, which has been increased from 12 percent to first 15 and then 18 percent.
Moreover, economists have questioned the current fiscal policy, saying that even though the current account is in surplus, the rupee is being deliberately devalued, even as the dollar is depreciating globally.
Experts say that widening the tax net, eliminating incentives, and bringing small businesses into the economic mainstream have become essential for sustainable economic recovery.
