On Imran Khans Civil Disobedience and Tax-Evasion. Dr. Taimur Rahman The poor and working class pay indirect taxes (i.e. they are part of the prices of various commodities). Or their taxes are deducted at source (deducted before salary is given to them). Landlords are exempt from income tax. They pay indirect taxes (just like the poor) and these constitute a small percentage of their income. Only capitalists are required to pay income tax. The capitalist has to declare their income and then pay tax on it. But in reality two books are kept in nearly all industries in Pakistan. One for the owners and another for the tax department. It is well-known in business circles. Thus, this is the sector in which tax evasion is highest. Hence, Imran Khans proposal of not paying taxes is God send to the capitalist class. The landlords dont pay any taxes. The poor have no choice but to pay indirect taxes. The people who should have been heavily taxed to meet Pakistans budgetary needs now will be engaging in civil disobedience and will find an ideological justification to not pay their taxes. At best the final result of IKs so-called civil disobedience will be to provide an ideological veneer to the practice of tax evasion by the ruling class.
Posted on: Mon, 18 Aug 2014 08:35:35 +0000
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