MPs: Link Pakistan aid to taxes

Britain must only go ahead with a major increase in aid to Pakistan if the nation increases the amount of tax it collects from its own wealthy people, a Commons committee has recommended.

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Around 70% of Pakistan's MPs 'do not file a tax return'

The Government plans to increase its £267 million bilateral aid programme in Pakistan, which has one of the smallest tax bases in the world, for the financial year that ends today to £446 million in 2014/15.

During their inquiry into UK aid to Pakistan, MPs from the Commons International Development select committee were told that while one in three people in Pakistan live on less than 30p a day around 70 percent of the nation's MPs do not file a tax return.

The committee indicated it wants Prime Minister David Cameron to push for action on corruption and tax evasion with Pakistan's leadership and called for the Government to use its influence within the International Monetary Fund to press for urgent reform of the tax system.

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