There are number of myths about informal economy including that it is black, evil and a waste. The informal economy is a competitive economy where the market actually works. Given the onerous regulations and poorly thought out and predatory tax system, these entrepreneurs are taking the approach of avoiding the officialdom.
Instead of framing the problem in these antagonist terms, we should try and figure out how is it that we can make the state trustworthy for all citizens and all markets.
- How can we transform the predatory regulatory and tax system to be
accommodative of all markets - both formal and informal?
- Small businesses should be facilitated to become a part of the formal
economy, by easing out their regulation, their taxation, their ability to
digitize, their ability to gain space easily. They must be allowed to grow into
corporations and eventually even listed companies on the stock exchange.
- The wholesale and retail sectors are clearly visible in their business practices, yet they are maligned on their tax payment.
- Is it because they are reluctant to do the right thing or is it because they are facilitated in their endeavors? If the latter becomes a matter of poor tax policy and administration. Instead of vilifying them, there is the need for deep policy and tax administration reform as suggested by PIDE.
Street and small vendors are frequently vilified by policy and administration
with their businesses disrupted. Not only is this a tax, but also forces them to hide. Once again, this is the fault of policy and the administration.
Documentation is a myth that the government and donors/lenders have
been pushing for a long time. With the ID card and numerous papers and
affidavits that are produced, considerable documentation has taken place.
The problem is the state own unwillingness to use data analytics and data
systems as well as digitization to adequately link the documentation of
every individual that is taking place.
- We have been hearing about points of sale systems for decades now. What is holding it back is very hard to understand?
- The FBR system of refunds is still not electronic and there are numerous
funds that are clogged in the system and thus system loses trust.
#Pakistan #Economy #Taxes #InformalEconomy #digitization #documentation #regulations #Filers #NonFilers #TaxBurden #IMF #Economy #IMFProgram #Politics #Investment #Loan #Debt #PIDE #society #EconFest #EconFest2024
Panelist:
SYED MOHAMMAD SHABBAR ZAIDI
Former Chairman, Federal Board of Revenue of Pakistan
SYED ASAD ALI SHAH
Former Advisor to Chief Minister, Government of Sindh
FASEEH ULLAH KHAN
Managing Director, Crunchies & Pizzakone/ Senior Vice President, Traders
Welfare Association
OMER SIDDIQUE (Moderator)
Senior Research Economist, Pakistan Institute of Development Economics
For Further Details Please Visit:
@PIDEOfficial
www.pide.org.pk
/ pidepk
/ pideislamabad
/ pidepk
/ pidepk
4 июн 2024
