US view: taxation steps a start in right direction

The United States recognises the recent taxation measures taken by the government of Pakistan as 'a start in the right direction' with the objective of broadening the tax net through bringing 0.7 million people into the tax net. The US is a major supporter of Pakistan's key macro economic indicators through military and civilian assistance.
Pakistan receives $1.5 billion annually in non-military assistance and has become one of the principal recipients of US aid. The government of Pakistan in its budget for fiscal year 2011-12 announced that an additional 0.7 million people would be brought into the tax net, of whom 77,000 have been issued notices and 17,189 have responded to the notices, with over and above 1000 having paid taxes. The Federal Board of Revenue (FBR) had dispatched notices to those wealthy persons having at least two foreign bank accounts, frequently travel aboard or are owner of a new vehicle or immovable property in posh areas.
Notices have also been served on directors of loss making companies who are living a luxurious life including frequent travels abroad, stay in five-star hotels, and their children are studying in foreign universities/colleges. Alberto Rodriguez, US Embassy spokesman in Islamabad, told Business Recorder that the steps taken by the government to broaden its tax base "is a start in the right direction". However, he added that the important question is: "Are the people of Pakistan satisfied with the tax distribution of their government?"
It is pertinent to mention here that US Secretary of State Hillary Clinton had urged the government of Pakistan to tax its elite and not rely solely on the US tax payer, if it wants to continue receiving financial assistance.
"This is one of my pet peeves: Countries that will not tax their elite who expect us to come in and help them serve their people are just not going to get the kind of help from us that historically they may have," Hillary had told an audience at the US Global Leadership Coalition conference last year, adding that "Pakistan cannot have a tax rate of 9 percent of GDP when land owners and all the other elites do not pay anything or pay so little. It's laughable. And then when there's a problem everybody expects the US and others to come in and help".