LAHORE: The government's recognition and efforts to curb tax evasion across the country are commendable; however, there is still much to be done to achieve the desired results, stated Fawad Khan, spokesperson for Mustehkam Pakistan.
According to him, recent government data reveals tax evasion in Pakistan has reached an alarming PKR 7,000 billion, with approximately half—around PKR 3,500 billion—lost solely to sales tax evasion. This substantial revenue loss stems largely from unregistered businesses and illicit trade activities, which weaken the national economy.
“The country faces a significant economic crisis due to widespread tax evasion and illegal trade, costing billions of rupees through tax leakages,” Fawad said, adding that the government will struggle to raise the tax-to-GDP ratio to its target of 13% without addressing these issues.
Fawad emphasized the urgent need for swift action to address these leakages. By effectively closing these channels of tax evasion, Pakistan can move toward economic stabilization, reduce the tax burden on compliant citizens, and create a fairer economic landscape for registered businesses, he concluded.
Copyright Business Recorder, 2024
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