WORLD BANK IN ITS LATEST ASSESMENT TARP HAS CONCLUDED THAT REFORMS HAVE FAILED AND PAKISTAN's TAX TO GDP RATIO HAS FALLEN TO 8.6pc WHICH IS LOWEST IN ITS 40 YRS HISTORY. IT IS ALSO LOWEST IN THE WORLD. THIS IS DESPITE MASSIVE INVESTMENT IN LATEST TECHNOLOGY. THE HUGE DATA COLLECTED IS NOT USED TO TAX THE LARGE SECTION OF THE ECONOMY DUE TO LACK OF WILL TO TAX POWERFUL PRESSURE GROUPS LIKE THE AGRICULURIST,TRANSPOTERS,WHOLE SELLERS,RETAILERS,PROFESSIONS.
THE DATA ABAILABLE FROM BANKS,NADRA,SECP,ELECTION COMMISSION ARE NOT CORELATED TO EXPAND THE TAX BASE.
SHABBAR MADE A POINT THAT LIKE SBP,SECP WHICH ARE RELATIVELY DOING BETTER TAX ADMISTRATION SHOULD BE DIVORSED FROM GENERAL ADMISTRATION SYSTEM OF THE COUNTRYAND A DIFFERENT RECRUITENT PROCEDURE SHOULD BE ADOPTED SO THAT HIGHLY TRAINED PROFESSION
ALS COULD BE INDUCTED IN THIS TECHNICAL SERVICE.
HE WAS ALSO OF THE OPINION THAT NON OF THE CURRENT POLITICAL PARTIES INCLUDING PTI HAVE ANY UNDERSTANDING OF THE CORE TAX PROBLEM OR HAVE ANY SOLUTION OR ANY WILL TO STAND UP TO THE POWERFUL PRESSURE GROUPS LIKE AGRICULTURIST WHO OCCUPY 80pc OF CURRENT PARLIMENT.
HE CONCLUDED THAT ONLY A NEW POLITICAL PARTY WITH MORAL STRENGTH AND VISION CAN BRING ABOUT A CHANGE OR OTHERWISE THE CURRENT HEAVY BURDEN ON A VERY SMALL TAX BASE WILL CONTINUE AND RATIO WILL CONTINUE TO FALL AS GDP GROWS.
