Absence of taxation culture?

23 Jan, 2020

That the incumbent Federal Board of Revenue (FBR) chairman is vastly different from his predecessors is a fact. Describing the existing taxation system as 'extortionist', the FBR head has in fact made a bold admission about the taxation arm of the government. According to him, the FBR is collecting 90 percent taxes in the shape of withholding taxes and deduction at source while only 5 to 10 percent is coming through voluntary compliance.

He argues that automation is the only solution to tax collection growth challenge. I, however, wish to record my disagreement with him. Automation, in my view, can be one of the solutions; it cannot be the only solution. The real challenge is the absence of taxation culture in the country. In other words, there is a culture of defeat in relation to tax collection.

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