CURRENT AFFAIR GUIDE ESPECIALLY FOR COMPETITIVE EXAMS ( CSS, PMS, PCS, AD IB, AD FIA JUDICIARY)

    In Pakistan's 220 million people, tax evasion is common; only 2.5% of people are enrolled in the tax system, but even fewer actually pay it. When it comes to effectively raising public money from taxation, Pakistan ranks among the least effective emerging nations. The country's tax burden still accounts for 10% of GDP despite ongoing efforts to restructure and revise the system. Economic growth, social prosperity, and prosperity have all been hampered by the failure to strengthen the tax culture. Some of the negative effects of the country's ruined tax system are the current economic situation, rising foreign debt, growing budget deficit, and the burden of indirect taxes on the poor. This trend can be reversed by implementing fundamental policy changes that will increase the effectiveness of the tax system and make it a significant source of income for Pakistan's frail and unsteady economy. Modern practice is the behavioral approach to tax policy. Both affluent

                 A rise in prices that lowers a country's purchasing power is referred to as inflation. As long as the annual percentage stays low, inflation is a natural economic development; once the percentage exceeds a set threshold, it is referred to as an inflation crisis.   The term "inflation" was previously used to describe increases in the money supply (monetary inflation), but as a result of economic discussions regarding the connection between the money supply and price levels, it is now mostly used to refer to price inflation. The loss of purchasing power in the medium of exchange, which is also the monetary unit of account, is another way to define inflation.   Each unit of cash may purchase fewer products and services when the general price level increases. The general inflation rate, which is the percentage change in a general price index, typically the Consumer Price Index, over time, is one of the main indicators of general price-level inflation.