Daily Times

Pakistan is experiencing its most severe economic meltdown in recent history, which has quite expectedly prompted a barrage of suggestions from each one of the economic cognoscenti. Perhaps, sensing that its proposal to raise taxes on the salaried class had not sat well anywhere, the World Bank has taken an about-turn as its Country Director asked Pakistanis to not “get distracted” by a component of “one recommendation of a report that included 50 recommendations.”

That salaried class has long been bleeding at the altar as the state tries to balance the scales for tax avoidance by the rest has been argued to the point of repetition.

Keeping the daily battles to ensure food in their bellies, roof upon their heads, light in their houses and fuel in their vehicles, the international financial institution has once again pointed out the undue advantages enjoyed by real estate and agriculture, which should be taxed by the provincial governments to reduce the burden on the centre.

The dichotomy appears to have come to them as manna from heaven as they continue to enjoy all that their country has to offer without loosening the drawstrings of their own wallets. Government after government has been informed how Pakistan’s revenue collection remains the lowest but the burden on those under the tax net remains the highest.

This rigid tax base calls for a comprehensive set of reforms that reduce subsidies, spell an end to exemptions and bring forth effective categorisation that applies to all areas. Failure to do so would paint over what has already been written on the wall in clear, bold letters: the government does not wish for the middle class to survive.

In a country where textile exporters pay back $74 billion and large-scale retailers, a measly $15 billion, how can an overwhelming Rs264 billion be extracted from those who live paycheck-to-paycheck? The irony is almost palpable! *