Instead of yielding to the pressures of regulation, Pakistan’s tax structure must be reviewed and upgraded so that it is based on economic expansion. Mr. Wang Zihai, President of the Pakistan China Joint Chamber of Commerce and Industry (PCJCCI), stated on Monday, during an online meeting held at the PCJCCI Secretariat, that administrative reforms are required in the tax system and that the tax recovery system should be redesigned. In addition, he provided an overview of the planned road map for tax reforms, which is based on the Chinese taxation model. He stated that there was a need to develop an optimal balance between a tax regime and the growth of business in order to create an investment-friendly environment and an efficient system for generating sufficient revenue for public services. He stated that China’s taxation reforms had resulted in a magnificent community development and that Pakistan could undergo a paradigm shift in order to develop a business-friendly taxation system by emulating China’s taxation reforms. He asserted that China had primarily shifted resources from private to public use through the use of taxes. In addition, he stated that China had made taxation a central component of both its economic and community development agendas. During his presentation, PCJCCI Senior Vice President Ehsan Chaudhry informed the audience that China, a socialist state, has met the needs of society from birth to death. State-owned corporations were primarily responsible for providing services such as elder care, child care, education, job placement, housing, and food, in addition to health care. He continued by stating that the current system of taxation was a burden on the business community and that it should be replaced with more effective taxing models from around the world, including the Chinese model, which had proven to be the most effective of all the models. Vice President of the PCJCCI, Sarfaraz Butt, stated that the reform of China’s value-added tax (VAT) was the single most significant factor that contributed to the growth of China’s service sector and its emergence as the “world’s factory.” He went on to explain that the reform of the VAT was intended to replace the business tax in the manufacturing sector so as to protect the tax revenue of local governments. In China, the tax was a by-product of economic expansion, and he suggested that the Pakistani government should also prioritise economic expansion, which would inevitably lead to an increase in taxes. The tax in China was the result of economic growth. Secretary General of the PCJCCI, Salahuddin Hanif, stated that once equality and fairness in the tax system had been proven, enforcement and compliance would significantly improve.