IN the two days before writing this column, I had the pleasure of being immersed in a series of discussions in Islamabad on all things related to taxes in Pakistan. Hosted by the finance ministry and the IMF, the discussions brought together senior practitioners, advisers, and stakeholders for a detailed, high-level debate on what all needs to change in Pakistan’s tax system for it to play a more enabling role in undergirding stability for the private sector and promoting growth rather than being a drag on it.

What struck me during the discussions was the large gulf between the community of experts the IFIs bring to the tax conversation and the people who legislate and oversee the making and implementation of tax policy in Pakistan. The gulf is evident in how they approach the question of tax, the priorities they bring to the table, how they measure success, and the language they use to talk about taxes. The experts present — sadly, the content of the discussions was “off the record”, so only broad themes can be discussed here — emphasised sustained commitment, balanced compliance, and measuring outcomes, “not activity”. Special emphasis was put on the harmonisation of GST, predictability of policy, and the mutually reinforcing dynamic between various tax heads — for example, how a properly administered GST can help strengthen income tax as well. FBR representatives underlined their tax reform efforts. However, participants still pointed out........

© Dawn