ISLAMABAD: Ashfaq Tola, Chairman of the Reforms & Resource Mobilization Commission, revealed on Wednesday that salaries of government employees would see an approximate 20% increase in the upcoming budget.
Speaking at the launch ceremony of the report titled “Unveiling Tax Evasion: A Closer Look at Five Sectors in Pakistan,” Mr Tola addressed the need to uplift the significantly low salaries of lower-grade government employees.
Mr Tola emphasized the importance of addressing the salary disparities, but refrained from commenting on the perks and privileges enjoyed by the senior bureaucracy. The chairman acknowledged the issue of tax evasion in the country, as highlighted in the report prepared by the Paris-based research company “Ipsos.” The report unveiled that tax evasion in five sectors caused an annual loss of approximately Rs 956 billion.
According to the report, the real estate sector accounted for an estimated annual tax evasion of Rs 500 billion, followed by the tobacco sector at Rs240 billion, tyres and auto lubricants at Rs 106 billion, pharma at Rs 65 billion, and illegal tea trade at Rs 45 billion per annum.
The Chairman emphasized that tax evasion had given rise to a parallel economy and stressed the importance of coordination among different government departments to combat this menace. He called for automation and financial inclusion as key factors for the country’s economic growth, emphasizing the need to boost financial inclusion and address the issue of tax evasion.
Highlighting the negative impact of illegal trade on Pakistan’s global standing and revenue, Mr Tola also expressed concern about the lack of accountability and responsibilities related to the resources transferred to provinces under the 18th amendment. He suggested the installation of scanners to inspect containers returning from Afghanistan after delivering transit trade goods as a measure to combat smuggling.
Addressing the event, Zafar Bakhtawari, a senior leader of the business community, attributed tax evasion to mismanagement in the official system and a lack of trust in government entities. He called for the eradication of exploitative attitudes and overregulation of businesses to promote transparency and trust.
Chairman Ashfaq Tola’s announcement regarding the salary increase for government employees in the upcoming budget, along with the concerns raised about tax evasion and the need for financial inclusion, sparked discussions on vital economic reforms and accountability measures.
