KARACHI: A pro-growth flat tax policy and flat tax reform plan will dramatically change the taxation system.
Pakistan can replace all taxes by imposing a flat tax of 10 percent on personal income, 5 percent GST, 20 percent on corporate income, 5 percent customs duty and 3 percent excise duty.
Flat tax can be discussed in two ways, one is to expand the tax net and keep the rate at the lowest possible level and the other is to focus on the idea of single taxation, widening the tax net partially to the other. serves the purpose, thereby reducing the chances of double taxation.
Heavy taxes result in stagnation of productive activities while low taxes result in acceleration of productive activities, and increase in revenue, Pakistan needs a pro-growth flat rate broad base tax system, in which every Pays equal tax from his income.
Implementation of heavy and complex taxes has exposed the Pakistani economy to risks, Pakistan can learn from Central and Eastern European countries, which adopted flat tax in 90s and success so far. Running from