Business Recorder's research wing's publication Fiscal Review noted some disturbing features with respect to our expenditure and revenue generating potential which include.
(i) untargeted subsidies to the power sector which account for 85 percent of total subsidies, continue to fuel inefficiency and inflation, (ii) a survey revealed that 70 percent of foreign corporate investors were dissatisfied with the fairness and clarity of corporate tax, experienced difficulties in getting refunds and expressed concern over policy implementation and ease of doing business in Pakistan; and (iii) tax reforms premised on equity as well as ensuring a tax structure that is non-anomalous and enhances documentation remains stalled.
There is no dearth of studies - official as well as private - that highlight the problems facing the economy and suggestions as to how to overcome these problems. What is lacking is political will that is not limited to the current coalition government but extends to other parties including the PML (N) that together with any PPP-stalled plan to impose a tax on the income of rich landlords. The MQM was the only party that supported a farm tax. However, it must be noted that MQM's support base is not the rural rich but urban areas, which indicates why the party opposed enhancing documentation through value-added tax.