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Question

(a)   Tax laws have become extremely complex in Pakistan. In addition,

there is little theoretical or moral justification for a substantial number of tax incentives (loopholes). Why and how are these incentives created? In your opinion, is there any indication that these incentives will be eliminated?
(b)  What are the tax laws for capital gains and dividends in Pakistan? Keeping this scenario in mind, what security will you invest in and why?

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