On Tuesday, September 24, 2024, Dr. Ikram-ul-Haq, Advocate Supreme Court and Chief Partner of Huzaima Ikram & Ijaz, delivered a lecture to the participants of 36^th SMC on “Federal Taxation Structure in Pakistan”.

Dr. Ikram ul Haq delivered an insightful talk on the federal taxation structure in Pakistan, shedding light on the current framework and its implications for the economy. He began by outlining the present federal taxation system, highlighting its reliance on a combination of direct and indirect taxes, with a particular emphasis on the latter, such as sales tax, customs duties, and excise duties.

Dr. Haq compared direct taxation, which includes income and corporate taxes, with indirect taxation, explaining how indirect taxes disproportionately affect lower-income groups and lead to inflationary pressures in society. He stressed the need for a balanced approach to taxation, where direct taxes play a more significant role.

The talk also covered the various tax reforms introduced over the years to bridge the tax gap and broaden the tax base, including efforts to enhance tax collection efficiency and reduce evasion. Dr. Haq emphasized the importance of promoting a tax culture and increasing documentation to improve compliance and ensure equitable contributions from all sectors of society.