Government should introduce an equitable tax system based on the principles of tangible benefits, services and justice to the people for promoting a better tax culture in the country. This was said by Zahid Maqbool, President, Islamabad Chamber of Commerce & Industry (ICCI) while presiding over a meeting of ICCI Taxation Sub Committee.

He said successive governments have failed to convince the people to pay their due share of taxes as a national responsibility mainly because taxpayers’ money was mostly abused for the comfort of the elite while the common main remained deprived of basic needs. The result is that the country is heading towards debt enslavement and donors subjugation.

He said already Pakistan’s total debt obligations have crossed $100 billion mark ($52.83-billion external and $48.2-billion domestic) that is equivalent to 63 per cent of the country’s economy. He said the present government in a single year has accumulated a worrisome sum of $15.63 billion to the stock of country’s debt, which is not a hallmark of good governance.

He said government should launch programs, financed mainly through taxes, to solve the twin problems of unemployment and poverty in the country and to fulfill basic needs of all segments of society including health, education and civic amenities. He claimed that once people see the tangible benefits of the taxes paid, there will be a better response to tax compliance.

He said taxes should not be collected through harsh measures and irrational policies. Rather government should demonstrate by its action to the taxpayers that money collected from them is spent for collective welfare so that people trust could be developed to pay more taxes.