Pakistan’s gross domestic product has fallen. The World Bank’s chief tax expert, Sebastian James, has said that Pakistan’s gross domestic product (GDP) has fallen below average over the past two years.
He also noted that excessive taxation contributes to the country’s economic woes.
He said the tax cuts were undeniable, as they caused financial problems for the department because early repayments were not made in Pakistan.
James made the remarks during a webinar hosted by Pakistan Development Policy Series 2021 at the World Bank.
Special Assistant to the Minister of Lands and Taxation, Dr. Waqar Masood, during a webinar, said the government is reforming the tax evasion system.
So far, there are 65 types of taxes in Pakistan, which the government plans to remove 40 over the next two years, starting with the upcoming budget for 2021-2022.
Pakistan’s WB president Najy Benhassine, meanwhile, said Pakistan’s tax burden was too narrow, with high tax spending and tax cuts straining.
“It’s important to increase the tax burden rather than the tax,” James said. It is our strong concern that Pakistan’s gross domestic product (GDP) has been declining in the last fiscal year compared to similar economies. He said there is a higher tax on legal economies, as well as a lower tax on non-core economies.
He suggested that reforms be made for tax evasion, since it would be eliminated with the introduction of a news management system.
Taxes are not tax deductible, they are not for tax collection, but they do provide information, so the change is hard to come by.