Nearly half of taxpayers worldwide don’t see their money being spent for public good — survey

ISLAMABAD: Almost half of taxpayers across the globe do not see their money being spent for the betterment of public, a recent global survey found, in contrast with the idea of citizens agreeing to pay taxes in exchange for services.

The poll was conducted by the Association of Chartered Certified Accountants (ACCA), a globally recognized professional body providing qualifications and advancing standards in accountancy.

The survey found that 52% of the respondents globally agreed that taxes were a contribution to the community rather than a cost, while 25% disagreed with this. The rest chose to stay neutral.

“Only 33% agree that tax revenues in their country are spent for the public good,” the ACCA said on Friday, adding that 46% respondents disagreed with the notion.

In addition, it said, 32% agreed that public services and infrastructure were a fair return for the taxes they paid, with 50% disagreeing and the rest staying neutral.

Pakistan has one of the lowest tax ratios in the world, according to the World Bank. The South Asian country’s failure to generate tax revenues in higher amounts stems from the fact that it has a narrow tax base, low compliance rate, an inefficient tax administration and massive tax evasion.

The South Asian country aims to collect an ambitious $46 billion through taxes this financial year (July 2024 till June 2025). Authorities say they have identified 4.9 million taxable persons in the country by using modern technology.

“Trust in tax systems is crucial for sustainable development and prosperity, and the findings of this survey highlight the challenges that many governments across the world face in building it,” said Helen Brand, the ACCA chief executive.

“We look forward to using this important work to engage with policymakers, tax authorities and civil society to drive evidence-based policy initiatives to build effective and trusted tax systems.”