Pakistan's Tax Structure Is Being Revamped.
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