Karachi: Pasban Democratic Party (PDP) Chairman Altaf Shakoor here Sunday said that black or shadow economy is harming the nation and country but the government has failed to check this menace.
He said to avoid tax different non-documented channels of finance and money transfer are being used with full impunity, while tax evasion is on its peak.
He said a global research report of Ipsos on tax evasion stated that the shadow economy in Pakistan accounted for about 40% of gross domestic product (GDP) and about 6% of GDP was being stolen every year. This is a significant amount that can be used to improve the living standards of people by developing the economy on a sound footing.
According to the report, the top five products/ sectors that have caused annual tax evasion of Rs310 billion include the illicit trade in tea (Rs35 billion), tobacco (Rs80 billion), tyres and lubricants (Rs90 billion), medicines (Rs45 billion) and real estate (Rs60 billion).
He said Hundi/ Hawala and Aarthi system are the main tools of thriving black economy. He said most traders and industrialist prefer black economy to avoid taxation as well as corruption and bribery of taxation officials. He said if the taxation rates are rationalised more people would opt for paying honest taxation.
Altaf Shakoor said sadly the political elite of Pakistan are the most corrupt people and every big political party is teemed with them. These people are the role model of ordinary citizens for tax evasion and opting for black economy.
He said the government is not interested to check black or shadow economy as the majority of the ministers, advisors and top bureaucrats are the main beneficiaries of the black economy. They would never kill their golden eggs laying hen.
Altaf Shakoor said the megacity Karachi is the hub of black economy. He said due to poor law and order and highly corrupt government officials posted in the megacity, all sorts of crimes including black economy are on the rise.
He demanded of the government to take foolproof steps to check black economy and illegal banking and financing systems to ensure real growth of our legal economy in the best interest of the nation and country.
