Tax Evasion Hinders the Progress of Economy of Pakistan

Abstract

Tax evasion s a critical issue that significantly hampers the profitable/economic growth and development of Pakistan. Despite the country’s eventuality for profitable expansion, the wide practice of  tax evasion undermines government profit generation, limiting the capacity to fund essential public services, structure systems, and social weal programs. This issue is aggravated by a large informal sector, weak enforcement mechanisms, and a lack of taxpayer mindfulness/knowledge, which inclusively contribute to a low  duty base and high situations of non-compliance. Tax evasion not only deprives the government of important- demanded profit but also creates an uneven playing field, where honest taxpayers bear the burden while evaders continue to escape their liabilities. As a result, the country faces challenges in achieving financial stability, promoting sustainable development, and addressing poverty. Effective results, including strengthening duty administration, enhancing public mindfulness, and expanding the formal frugality, are critical to addressing tax evasion and fostering a more robust and indifferent profitable terrain in Pakistan.