The PTI government is take initiative to lunch new reforms in tax system in Pakistan which could not take before. No government has been taken affective step to collect tax system in Pakistan. Only Six hundred thousand people have been paid the tax in Pakistan. That thing would fall down the economy of this country. No economist neither expert of revenue may take notice to revival of the tax system in Pakistan. On the other hand Pakistan is depending upon agriculture. Only 30% people are connecting other profession. This trend is being changed in last fifteen year. On the other hand, the Declaration of assets Act is new concept or ideology. The object of tax reforms is essential for growing economy of Pakistan. This government has given relaxation to the taxpayer regarding to paying taxes.
In Pakistan tax authority has not been effective initiative to collect tax from the defaulter who may have stolen tax easily. Moreover, prolong civil litigation is issue in Pakistan. On the other hand, the nepotism in Pakistan is prevailing in the society. However, the fall down of institutions in Pakistan is another issue. Why tax reforms are being essential for Pakistan? The entire economic is rotates in tax systems. Unfortunately, tax system is not promulgated in real sense. Tax is revenue for the state. In Pakistan annual tax system is prevailing. If tax system is weak in the country, the entire economic going fall down. Those factors are annoyance to government to taken loan from International Monetary Fund (IMF). The net result is an issue.
Tax is an amount which is paid by the taxpayer in the end of year or 30th June. Ratio of tax is being increased in current financial year 2019-2020 e.g, a person who earned
(Six hundred thousand) from salary in a year and (Twelve hundred thousand) earned from business for eligible to pay the taxes. This government has been amended Income Tax 30th June, 2019 and new provision has been added which is adhere. There are various categories of taxes and taxpayer in Pakistan. Normally, two types of taxes i.e. Income comes from salaries and income comes from Business. Advance tax pay system is also prevailing in Pakistan. There are different categories of taxes i.e. Income computed from business, income computed from trade, income computed from salary and income computed agriculture production which is paid by the taxpayer in annual systems.