Inflation should be stopped before it becomes threat to govt: PEW

ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday urged the government to control inflation before it becomes a threat to it.

PEW President Dr Murtaza Mughal said

that the government is trying to increase its revenue but reforms in the tax
administration are equally important and should not be ignored. He added that
agriculture sector forms about 26 per cent of the GDP which should be brought
into the tax net, while documentation of this sector is necessary as it has
become a safe haven for the tax evaders.

“Last year, the government collected

almost Rs4 trillion in revenue. Increasing it to Rs10.5 trillion by 2024 will
be a challenge,” Dr Mughal said. He added, “He said that complete documentation
of the economy and complete control over smuggling are ambitious targets which
have not been achieved by any country.”

Lauding the action against benami

accounts, the PEW president said that 99 per cent of such accounts are being
operated by the business community which should be dealt sternly. He added that the business community is protesting tax
measures to get relaxations while the government has decided to implement all
the decisions in letter and spirit in the national interest.

“In the current set of circumstances

country can neither afford confrontation nor any tax relaxation. The economy
must be fast enough to generate more revenue,” he said, adding that a deadlock
over taxation issues is not in the national interests.

Suggestions were also given that profiteers

should be dealt with an iron hand as they have crossed all limits to plunder masses
as the country is moving from medium to high inflation.