5. .
The national economic crisis has refocused public
and political attention on the importance of
defeating illicit tax abuse and improving bank
transparency. It has ushered in a long-overdue
public and political intolerance of regimes that
flout tax laws and standards and deprive
countries of their rightful earnings and assets.
Properly and transparently organized tax systems
are now accepted as engines of development, not
constraints.
6. Obstacles in Tax in Pakistan
Ease of Tax Administration
Weak Capacity for Implementation
Non effective Tax policy
Non Efficient Tax Collection
16. Importance of Tax collection in
Development
Resource Mobilization
Reduction in Inequalities of Income
Social Welfare
Regional Development
Control of Inflation
18. Conclusion
Both direct and indirect taxes are essential to
bring adequate revenue to the state for meeting
the increasing public expenditure. Both taxes are
essential to promote economic growth, fill
employment and economic stability. Direct and
indirect taxes should side by side & balance each
other. However in developing countries, direct
taxation has limited scope and hence indirect
taxation plays a more significant role. A well
oriented system of taxation requires combination
of direct & indirect taxes in different proportions.