A blessing in disguise

Rising imports that have adversely affected the external account constitute a blessing in disguise for our country's taxmen. Dr Hafiz Pasha, a noted economist, has pointed out in his last Business Recorder op-ed that "Therefore, while the burgeoning of imports has led to a record level of current account deficit in the balance of payments, thereby implying a fall in reserves with SBP, they have contributed to higher revenues and a lower fiscal deficit. It is interesting to note that they have also implied more income tax revenues. The presumptive income tax on importers is one of the largest contributors to direct tax revenues."
His analysis, therefore, presents a sardonic comment on our tax machinery's role in relation to collection of taxes. In other words, an adverse current account situation has resulted in an unforeseen positive development for our FBR.