Preparing for more tax burdens

In the wake of what now appears to be a liquidity shortage beyond presumption and a shortfall in revenue collection, the chances are high of the next budget bringing in newer forms of taxation. As the series of consultations with trade and industry continues, the National Board of Revenue (NRB) chief has told the Economic Reporters Forum (ERF) that ride-sharing Pathao and Uber are due to come under the taxation microscope. In the same breath he effectively nullified any prospect of raising the minimum tax ceiling suggesting, on the contrary that he would like a lower slab of tax introduced.
For the tax payer this will be an added burden, complete ignoring of the cost of living increase, inflation's impact not to mention taxation that impacts everyone.
Uber and Pathao have become sought after on two specific grounds -- security and time-saving. Motorbikes flaunt the traffic rules because the cops simply don't have the means to haul them up. In so doing they get to destinations in far less time. Uber provides a comfortable, essentially hassle-free transportation that reduces anxiety about looking for space in a non-existent parking scenario. Once more, though it is the process that is also required. Bikes and Uber, probably aren't equipped with the technology to provide receipts or value added tax (VAT) documentation with cash payments being more in vogue. How these will be reported and returns submitted haven't been explained.
We all know the idea of mass installation of POS machines has been abandoned out of sheer impracticality. The licensing procedure is so thin and so full of holes as it is, there remains doubt whether ride-sharing licences can be implemented and indeed monitored.
If the minimum tax ceiling is not raised for probably the third year in a row, it will be like the rule of a one-eyed king in the land of the blind. Living costs have gone up, whatever the reason. It beggars belief that expenses have accompanied this.
Unless ceilings are raised even as per declared inflation rates, it becomes starkly unfair and further contributes to people evading tax and resorting to corruption in a wider sphere. Instead of probing the glaring dichotomy of the big businesses not featuring on the list of largest tax-payers, this tendency to squeeze the lemon slice again can only result in bitterness and acrimony.
The Prime Minister had instructed the NBR to come up with a Plan B to recoup the losses from delaying by two years, the new VAT law. Whether that plan has been submitted and agreed upon isn't clear. The numbers haven't been revealed as such.
Newer forms of taxation has to be introduced but not the sort that isn't shared fairly uniformly. Taxing the rich to help the poor is fair. Taxing fixed income groups disproportionately isn't.
That it is the Anti-Corruption Commission (ACC) that is taking over the responsibility of confronting those with unusual income from the NBR is indicative and telling.
It is slow but happening that former high level government employees and even politicians are now being summoned to explain themselves. We need more of this and fast. Deterrents must be created to discourage corruption much before the ten-year target set by the Finance Minister.

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