Corporate tax policies

Indeed, one of the main causes of low tax compliance, underreporting, and tax evasion is the lax enforcement of tax rules. Although strict enforcement is essential, the government cannot increase tax revenue unless all incomes, regardless of source, are taxed and exemptions are eliminated. Additionally, powerful interest groups have successfully lobbied for exemptions, resulting in a staggering Rs4 trillion loss in potential tax revenue. By adopting these measures, the government can significantly bolster tax collection and improve the overall fairness of the tax system. While stricter enforcement is essential, it alone cannot address the systemic issues hindering tax collection.