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Shahid Khaqan Abbasi’s two cents on fixing taxation

Says government should have done reforms
A vendor arranges 10 and 20-rupee Pakistani bank notes in a display shelf at a commercial area in Karachi, Pakistan, on December 14, 2011. AFP
A vendor arranges 10 and 20-rupee Pakistani bank notes in a display shelf at a commercial area in Karachi, Pakistan, on December 14, 2011. AFP

Former prime minister Shahid Khaqan Abbasi has suggested an “easiest way” to identify who can pay taxes as the country plans to collect Rs12,970 billion in taxes.

“There will be inflation. Your economy did not grow and you have to collect more than Rs4 trillion in taxes. You will have to impose more taxes to meet that target,” said in an interview with Spotlight with Munizae Jahangir aired on Aaj News on Tuesday.

He was of the view that the government should have done reforms instead of imposing more burdens on the taxpayers. The former prime minister explained that Rs105,000 would be cut from the salaries of those who are earning Rs300,000 per month.

In 2018, Abbasi said that the PML-N government formed three slabs and there was no tax on people earning Rs100,000 per month but everyone had to file tax returns. “People don’t pay 30% to 35% tax, but they will give 15% tax.”

He advised that the government would have to revise the tax slab and bring everyone into the tax net.

“You have a system called CNIC [identity card] and the whole of Pakistan is connected to it. Now 55 million people have CNICs. You should make a mobile application and allow people to file taxes through it. If you say that you don’t have income, then I will check your utility bills and expenses. If you say that your spouse supports you then I will see their income. The basic thing is that if you have expenses then you have salary and the government is a partner in your salary.”

He added that the taxation would have a disproportionate impact on the poor people.

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Shahid Khaqan Abbasi

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