ISLAMABAD – Pakistan is the 2nd lowest in Asia in the overall tax payingcategory.
The country stands behind than Sri Lanka and Bangladesh and stands farbehind economies like Malaysia, Indonesia and Vietnam. China and India arefar ahead than Pakistan when it comes to the collection of tax and itsoverall collection system through direct and indirect taxes, according to astudy of State Bank of Pakistan which referred to World Bank’s report.
Besides massive tax evasion and a culture of avoiding tax, the absence ofefficient IT-based systems in tax collection mechanisms is an obstacletowards a progressive tax system.
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According to the World Bank’s Paying Taxes report, two indicators orfactors contribute significantly to the improvement of the tax regime andtax collection.
