Advocating judicious taxation system

29 May, 2015

This refers to A. B. Shahid's op-ed "Rationality - the missing link" carried by newspaper last Tuesday. The writer has painted a gloomy but objective picture of the present-day situation in the country. His narrative perhaps stems from a true patriotic Pakistani's observations, experiences and sentiments. He has made a strong case of how the country's economy could be improved in an effective and meaningful manner. For this purpose, he has argued, inter alia: "[t]hese inequalities are Pakistan's reality too, where petty and mega crimes, extortion, and targeted killings became a 'profession' for thousands of its illiterate, unskilled youth. Reason: over-reliance on indirect taxes instead of redistributive taxes to raise the resources for arrangements to contain the decline in educational attainment and skills among families in lower income groups". The writer has made some valuable suggestions aimed at increasing the present tax to GDP rate. Our policymakers are, therefore, required to draw some lessons from what he has been consistently advocating and opposing in the realms of economic policymaking.

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