Prof Christine Fair in The Daily Times
To free Pakistan of international meddling, Pakistan’s political leaders need only to subject themselves and their patronage networks to an agricultural and industrial tax, a move which Pakistan’s leadership has steadfastly avoided throughout the state’s entire history. Of course, it must improve income tax compliance too.
Given this refusal to expand its tax net, the state relies upon an admixture of international assistance and punitive and regressive domestic sales and income taxes to pay its bills. Sales taxes are especially regressive because they affect the poor far more than the wealthy. Government servants — whose income tax is deducted from their wages — and other honest income tax payers pay their way while the wealthy agriculturalists and business elite abscond. Bangladesh has a better tax compliance record than Pakistan.
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