On Wednesday 2nd September 2020, a Letter of Understanding was signed between Pakistan’s Federal Board of Revenue (FBR) and Federal Directorate of Education (FDE) taking under consideration the promotion of tax culture in schools around Islamabad.
Being an initiative taken under the vision of the Pakistani Prime Minister, Imran Khan, to inculcate the understanding of the taxation system in today’s youth, the LoU was signed in an official ceremony by Chief FATE of FBR Aisha Farooq and Director General FDE Zia Batool at the Federal Education Ministry. Moreover, the ceremony was also attended by numerous other officials including Pakistan’s Federal Education Minister, Parliamentary Secretary of Education, and various senior officials of the FBR.
According to the signed agreement, which has been declared a part of the ongoing tax reforms in the country, students enrolled in schools and colleges administered by the FDE will undergo experiential learning activities related to the taxation system and hence the taxation culture of Pakistan. This practice would not only act as a knowledge-based addition to the student curriculum but will also help to foster positive and responsible civil practices in youngsters enrolled in these institutions from a young age.
The project aims to train over seven thousand and five hundred teachers who in turn will help in education more than two hundred and twenty thousand students through the added educational sessions over a span of three years in Islamabad.
At the ceremony, Federal Education Minister Shafqat Mehmood appreciated the initiative and urged the associated departments to follow through with this project in the rest of the country too in order to promote a positive outlook to the country’s taxation culture nationwide.
However, with all the positives being stated above, we are sure by now you will have one big question in your mind.
Why Teaching Taxes To High School Kids Is Important Like Pakistan?
There has been a long due debate about how schools today don’t really cover the most important aspects of life, especially the ones that make living more easy when one grows up. Yes, money management is one of them.
It doesn’t matter if the individual is going to run a business in the near future or be a part of the employee income tax system, in either case, he or she will be bound to pay 10%-40% of the taxes (depending upon the bandwidth) while being in any part of the world.
As this means every government is going to take a good bunch of money in the form of different kinds of taxes, it is important for that children from the beginning are taught about the basic calculations so that they know how to manage their finances well and don’t have to depend a lot on tax experts for the smallest of tasks like filing the returns.
This condition should be paid more attention because of all the debt options that now attract the millennials and Gen-Zers because the rule will stay simple; if you are good with taxes, you are eventually going to be good with managing debt as well.
2. Ethical Responsibility
A good taxation system only benefits every individual living in the country once they need help with healthcare, education, or are in need of money from the state in times of crisis. Furthermore, it even keeps the country’s economy stand on its feet.
However, unfortunately, people today have don’t have the right idea about taxes and to some the culture of taxation now feels like the government stealing money from the pockets for their own benefits.
But this news coming from Pakistan is actually a step in the right direction to improve the wrong image about taxation that has been created by the goons or people who don’t pay taxes in the country.
The kind of ethical practices that you teach kids in schools are going to stay with kids for the rest of their lives and if children learn why paying taxes is actually good for their living and the country, sooner or later the government won’t have to raid corporate offices to catch avoidances or unnecessary evasions.
As soon as people would know about the importance of paying taxes, they will be able to demand from the government for their lawful rights. It will eventually increase the factor of accountability which will put the people above the government and as a result, a culture will take place where governments would be forced to spend on their people – something which has been missing for quite a long time in many of the Muslim states, especially in Pakistan at least.
Although looking at the news and its benefits, some of you might disagree saying that this seems to be a fairy tale idea proposed by the Prime Minister of Pakistan but I’m hopeful of how its impact can go a long way.
The rule of taxation was also strict in the State of Medina which Imran Khan has consistently been aiming to transform Pakistan into.
There is also one more smart way of teaching taxes to kids