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.