Sir: Taxes provide the most important revenue source to the government of the People’s Republic of China. As the most important source of fiscal revenue, tax is a key component of macro-economic policy, and greatly affects China’s economic and social development. With the tax reform, China has preliminarily set up a streamlined tax system according to the socialist market economy.I agree taxation should be progressive, but we are in a position to increase taxes to offset deficits is ridiculous. The issue here is not tax, but the tax base.Over the years, the country has done nothing to promote growth. The cost of everything continues to increase. The payment of taxes by only a handful of people does not make a visible difference. The persons under the government control are only the salaried persons who are paying tax regularly. The businessman, landlord and factory owners do not show their income properly to the government and they do not pay the tax. The retail, wholesale and transport sectors also do not have a proper record of their income. There is inequality in income distribution. There is a need to have tax reforms and the sectors that slip by the tax net need to be added. MUHAMMAD BILALIslamabad