Crumbling tax system
Taxes play a vital role for establishing an egalitarian society, the true fruit of social democracy. Under a representative and responsible government, citizens are taxed according to their ability (at…
An optimal tax system
Tax systems in most developing countries are far from optimal. Indeed, the need for adequate government revenues without excessive borrowing is sometimes in conflict with sound economic fundamentals. Most often…
Qualified intermediary agreement: A new US withholding tax system
Qualified intermediary (QI) agreement represents a new withholding tax system by which foreign financial institutions, or foreign branches of a US financial institution, may receive favourable withholding tax treatment. The…
Tax system in challenging times
The existing tax system, undoubtedly, protects the rich and mighty having monopoly over economic resources. The common man is subjected to sales tax of 17% (tax incidence is 35% on…
Paradigm shift in tax system
"The subjects of every state ought to contribute toward the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the…
Seeking directions towards compatible tax system
In global expanding economy the role of taxation is gaining importance particularly with reference to cross-border taxation, since these transactions pose difficulties and problems to tax administrations. In different phases,…
Banking on missteps: latest tax policy will distort financial system
One of the more short-sighted fiscal measures recently introduced is the higher tax on banking income from government securities. This tax is directly linked to the advance-to-deposit ratio (ADR), imposing…
Fixing the taxation system – Part IV
Among many compelling reasons for further devolution to the third tier is that citizens in a local jurisdiction are found to pay more taxes as they see that these are…
Fixing the taxation system – Part III
One of the pernicious side-effects of a large dose of the federal divisible tax pool injected into the provincial finances is that the provinces have become slack in mobilizing their…
Fixing the taxation system – Part II
Studies on sectoral incidence show that industry bears more than two-thirds of the tax, while the services sector bears about 21 per cent and agriculture 3.0 per cent. In the…
