Tax paying category: Pakistan is 2nd lowest in Asia even behind Sri Lanka and Bangladesh
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ISLAMABAD - Pakistan is the 2nd lowest in Asia in the overall tax paying category.
The country stands behind than Sri Lanka and Bangladesh and stands far behind economies like Malaysia, Indonesia and Vietnam. China and India are far ahead than Pakistan when it comes to the collection of tax and its overall collection system through direct and indirect taxes, according to a study of State Bank of Pakistan which referred to World Bank’s report.
Besides massive tax evasion and a culture of avoiding tax, the absence of efficient IT-based systems in tax collection mechanisms is an obstacle towards a progressive tax system.
According to the World Bank’s Paying Taxes report, two indicators or factors contribute significantly to the improvement of the tax regime and tax collection.
