The new federal budget proposes providing appealing incentives to those who file their tax returns on time.
According to the specifics, taxpayers who fully document 90% of their sales and purchases in a year are likely to receive income tax and sales tax concessions.
To meet the proposed revenue target of Rs 9200 billion, the government will need to impose new taxes as well as raise the rates of existing taxes.
Because 2023 is the year of general elections, the government is also under pressure not to place an undue burden on taxpayers. The proper solution and remedy is to use a computerized national identity card when buying and selling.
Documentation of the economy and broadening of the tax base are required, and the government must also improve and expand its tax intelligence system so that people’s annual income and taxes can be assessed based on their lifestyle.
People have been seen living in houses worth crores of rupees, driving around in cars worth crores of rupees, taking their families to France every year, flying abroad and staying in hotels, but the tax they pay is based on their lifestyle. This does not match.
