From an NY Times piece on tax collection (or lack thereof) in Pakistan:
Out of more than 170 million Pakistanis, fewer than 2 percent pay income tax, making Pakistan’s revenue from taxes among the lowest in the world, a notch below Sierra Leone’s as a ratio of tax to gross domestic product.
This might sound like paradise to some, but as a Oliver Wendell Holmes once said, taxes are the price that we pay for civilization. A government's ability to collect revenue is a good proxy for judging the writ, legitimacy, and competence of a state. Pakistan looks to be failing in all three.
Out of more than 170 million Pakistanis, fewer than 2 percent pay income tax, making Pakistan’s revenue from taxes among the lowest in the world, a notch below Sierra Leone’s as a ratio of tax to gross domestic product.
This might sound like paradise to some, but as a Oliver Wendell Holmes once said, taxes are the price that we pay for civilization. A government's ability to collect revenue is a good proxy for judging the writ, legitimacy, and competence of a state. Pakistan looks to be failing in all three.
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