Pakistan is celebrating its 75th anniversary while facing political instability and economic crisis due to the uncontrollable internal and external deficit, the value of Pakistan’s currency is facing severe pressure. However, due to IMF’s strict conditions and limited resources to repay the external debt, the government is unable to bear the burden of spending to provide relief to the people and stabilize the development process.

The government is facing a budget deficit despite ending public subsidies for the IMF program and increasing taxes. The implementation of the fixed tax on the retail sector has also been delayed due to protests by traders. In such circumstances, the government has decided to impose more taxes on other sectors including cigarettes to cover the tax gap of 30 billion rupees.

These high rates of tax are also the main reason for the promotion of illegal trade in the country.

Due to inflation and reduced purchasing power, consumers are shifting towards cheaper alternatives which are mostly fake and illegal products. In order to build the economy of the country on a sustainable basis, it is necessary that the tax authorities take action to deal with the illegal trade with firm determination on this Diamond Jubilee of the country.

USAMA GHULAM RASOOL,

Karachi.