✔ Correct Answer: B. Broaden direct taxation and reduce unjustified exemptions

The correct answer to the question “Pakistan raises substantial revenue through consumption taxes while many higher-income activities remain lightly documented. Which reform would improve both equity and durability?” is Broaden direct taxation and reduce unjustified exemptions. This question belongs to Economy of Pakistan in Pak Study. Practice the related questions below to master this topic for your FPSC, PPSC and NTS tests.