The World Bank (WB) has said Pakistan is collecting lesser tax than its actual capacity. Pakistan is falling short of Rs737 billion in tax collection, the World Bank said in its report and urged Islamabad to close all tax exemptions to release the burden of debts. The real estate sector is also paying Rs402 billion tax in Pakistan than its actual capacity, the report said. The bank also recommended that Pakistan should simplify its income tax structure, including aligning it for both salaried and non-salaried individuals, while ensuring progressivity. Earlier, the World Bank advised cutting various subsidies to save money adding that 167 billion rupees can be saved from the Tariff Differential Subsidy (TDS).

Source: The Nation October 10, 2023 10:28 UTC