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Pakistonomy - Episode 151 - Visa: Digitizing Payments and Promoting Financial Inclusion

Pakistonomy

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The Role of Tax Incentives in the Digital Economy

The gray economy has been growing, and which is the case as well in Pakistan. A lot of SMEs are trying to avoid paying taxes because they're afraid that if they start accepting digital payments, opening a bank account, then the government will come and take their money. So tax incentives have been working; it takes a bold move for a country to say, you know what, I'm going to forego part of my taxes for a certain period of time. Give some tax incentives so that people enter the digital economy.

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