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Blaming taxpayers

2016-10-26
HE reason given for the low tax base of the country by the prime minister`s special assistant for revenue has to be rejected outright. According to Mr Haroon Akhtar, people themselves are to blame for the state`s lax revenue effort because there is widespread evasion, the self-assessment scheme is misused and tax notices are seen as `harassment`. It is true that there is a culture and mindset of tax evasion in this country, and the deep mistrust that exists between citizens and the state greatly complicates the task of broadening the tax base. But the tax effort is not a voluntary programme in any country, and governments are reasonably expected to advance the revenue interest of the state in spite of stiff opposition from vested interests in addition to the nimble efforts of the citizenry to evade and subvert the effort.

Mr Akhtar was probably trying to tell his audience of business leaders to be more forthcoming about their tax affairs, and complain a little less. But his tactless phrasing caused the message to miss its mark. Indeed, people are reluctant to pay taxes, but the real problem is the non-enforcement of tax rules. The FBR is seen as corrupt, and a culture of periodic amnesties and ad hoc exemptions has helped create the negative attitude Mr Akhtar referred to. The PML-N itself has contributed to the problem by politicising the tax efforts of previous governments, and then walking down the same path, bypassing parliament to implement key decisions and offering amnesties of its own once in power. The only reason Mr Akhtar came to the conference with no vision beyond a simple blame game is because his own party is at a loss on how to broaden the country`s tax base. This is the main reason why he had little option but to assign blame. Recourse to such language and narratives sets into motion a destructive series of exchanges. Surely, people in official positions ought to exercise greater care.