Pakistan, Nov. 29 -- Taxation is a vital tool in developed and even developing countries to finance major government activities. It is a principal source for govt to fund its budget. According to the most recent estimates from the International Center of Tax Development, 50 to 80 per cent of the revenue of any country is generated through tax. It is being used to shape and construct the socio-economic policies and activities of the government. Income Tax, Sales Tax, Customs Duty and Federal Excise Duty are four major sources of tax generation in Pakistan. Many economists are of the view that "No country has been able to manage a high degree of development without substantial taxpayers."

The tax rate in developed countries like China, Den...