World Bank Declares Pakistani Tax System Unfair

Islamabad: The World Bank has strongly criticized Pakistan’s current tax collection system, labeling it as highly unfair. The institution has emphasized the urgent need for reforms in this system.

The World Bank states that while the current tax system may yield some short-term benefits, it is damaging the country’s long-term income potential. They argue that the system primarily operates by burdening a limited segment of society, particularly salaried individuals, with taxes to collect revenue. In reality, there are numerous individuals and businesses in the country that earn millions of rupees monthly but remain outside the tax net.

The World Bank stressed that it is now time to broaden the tax system. All types of income should be brought under taxation, and strict action should be taken against those who hide their wealth and income, thus becoming a burden on the country’s economy.

Experts also echo this view, stating that there is a dire need for a tax collection system that is equal for everyone, free from fraud, and beneficial for the country in the long run. If this is not done, the entire burden of tax shortfalls will continue to fall on the salaried class, which is not only unjust but can also create social imbalance.