Pakistan, Jan. 30 -- In the past year, the salaried class in Pakistan has surpassed several key sectors to become the third-largest taxpayer. However, there is a limit to how much the authorities can extract from those already pushing to their limits while turning a blind eye to the blue-eyed magnates. Astonishing disparities have recently emerged in investigations into the narrow tax base, strongly indicating that our tax machinery is in urgent need of reform.

It is inconceivable that, in a country with a population exceeding 240 million, only 12 individuals reported an income exceeding Rs 10 billion. Equally shocking is the fact that just 3,651 have a taxable income over Rs 100 million. On the other end of the spectrum, an astounding 2...