Apropos 'Power subsidy skewed towards better off sections of society: WB' carried by Business Recorder yesterday, the World Bank's Chief Economist has pointed out the electricity subsidy provided by the government in Pakistan is skewed towards relatively better off segment of society. He also pointed out that the poor have been paying more taxes due to lower direct taxes in Pakistan. He has further stated that a wide-range of tax exemptions and concessions has been creating inequality and even registered taxpayers failed to file their tax returns.
The learned economist has put under question a Rs 300 billion subsidy that the government gives to power sector every year. Not only do the helpless people suffer from an ever growing power supply-demand gap resulting in frequent power outages, they, particularly the middle and lower middle income groups, face the 'spectre' of over-billing. Insofar as tax contribution to the exchequer is concerned, it's an open secret that our country's better off segment of society pays little or no taxes. How ironic it is that power subsidy is skewed towards those who deserve no such subsidy.
Comments
Comments are closed.