Pakistan, Nov. 29 -- The shrinking share of direct taxes in overall collection is a serious cause of concern. It is now well-established that there is a direct link between growing poverty in Pakistan and distortion in tax base since 1991-92, when a major shift was made by introducing presumptive taxes (indirect taxes in the garb of income tax). Tax system was made worse in 2019 by making tax withheld on many incomes, receipts, investments, expenditure and transactions as "minimum" in utter violation of the Constitution and judgement of the Supreme Court in Elahi Cotton Mills Ltd & Others v Federation of Pakistan & Others.

The rich and mighty, on the other hand, not only get frequent amnesties but also pass on their tax burden on the end...