Daily Times

At the end of the day, people will pay tax not just on prime minister’s impassioned pleas but under strict regulatory enforcement measures. This is what Federal Board of Revenue (FBR) Chairman Shabbar Zaidi meant when he said that documentation of businesses and chocking of money whitening channels should be the government’s prime duty to increase tax revenues. Earlier, Prime Minister Imran Khan said at a gathering that the people should pay taxes as part of their national duty. He assured the public of the judicious utilisation of taxpayer money, saying that he himself had started austerity measures from his office. Leaders inspire the public by becoming role models but when it comes to paying taxes, appeals hardly work. Stiff regulations work and this is what the FBR chairman has been emphasising on since the day he assumed office. But he also needs to reflect on his efforts to curb the menace of undocumented flow of tax-evaded wealth. A few avenues of parking illicit money are real estate and prize bonds. All these ills stem from lack of documented data, as well as a culture of running organised businesses without getting them documented with government functionaries. Documentation of businesses and reforming economy are the core points of the present government. In fact, these should have been the demands of businessmen as the established principles of business management have proven that a documented business succeeds multi-fold.

Businesspersons have, however, legitimate concerns about documentation. Once on the list, their exploitation starts and it goes on endlessly at the hands of government bodies. For that reason, traders demand first overhauling of public departments and a corruption-free mechanism. The FBR chairman, however, sees the complete automation of tax collection as the best response to corrupt officials. Modern technology makes it possible to minimise human interaction for tax collection. The other big factor harming the documentation drive is inconsistent policies. More often than not the government will come up with an amnesty scheme mainly benefiting tax evaders, with zero incentives for taxpaying communities. Facts do not lie, and facts of amnesty schemes undertaken in the last two decades have proven that such schemes never rehabilitated the economy. Similarly, carrot-and-stick approaches have failed to bring about any changes to the economic outlook. This government has also done many compromises since the passage of the budget. A different, more professional, approach is called for. *