1 Billion a Day

[Luftwaffe]

Please quote where i said "Death to IK" or anyone? but yes, your butt is heart since IK was victimized or what.. btw i reported your this post as well for name calling ..

Right so if even it wasn't you, your friend recommends IK should be hanged = death...

So you can insult members calling butt [***] and yourself report others.

For Moderators patwari is legal term and can be called it is a profession even so ancient.

LOL he was @Tameem not @Fracker.. You mixed these two.

Same people multiple ids just as W11 and darkinsky.

 

[Fracker]

Did you not say IK should be hanged = death...

Nothing said. Read properly...

So you can insult members calling butt [***] and yourself report others.

For Moderators patwari is legal term and can be called it is a profession even so ancient.

Nice name for yourself, but I didn't call you yet with this name. Problem with english?

Same people multiple ids just as W11 and darkinsky.

lol Now that's funny.

 

[Shabaz Sharif]

And that loss is supported by govt. Treasury ?

Basically Tarbela/Mangla dams have served Pakistan well till at least 90's. Electricity theft, line losses were still in rampant. But because cost of electricity was low hardly anyone bothered to do anything. After 00's energy needs exploded beyond installed capacity. End result is goverment pay Rs 25 per unit to generate electricity from furnal oil and sell it for 14 if im not wrong.

Negligence of GoP in previous decades meant electricity theft was rampant, only now something is being done about it.

 

[Panther 57]

What is circular debt ??

Does that means taking more debt to pay previous debt or something else ?

Simple example
A has to pay 100 to B
B has to pay 100 to C
C has to pay 100 to A

A does not pay so the other

 

[ziaulislam]

PML N performance has been not upto the mark in taxation, electricity distribution and theft and gas theft

and all of these issues are the real problem.
very disappointing results in taxation, a mere 15% increase has been seen in taxation the deficit is even lower than worst analyst expectation. PML N had predicted a 28% increase..
the 15% means that PML N might have even performed worse than worst performance of PPPP. as most of this increase has been due to rupee devaluation, increase in sale tax and other indirect taxation.
the performance was decent during the first quarter @20% but it has been disastrous in last.

the only good performance of PML N is good solid finance ministry and kick starting works on projects financed by foreign banks and securing cheap loans from WB, asian bank etc

 

[Hyde]

I am really enjoying your posts since last few days as you are making lots of sense in your posts but you seems to have messed up here. I this-time disagree with your post. As per the world bank our total tax to gdp ratio has risen from 8.9% in 2009 to 10.1% so we must appreciate the fact that we are heading in the right direction (even though it's happening slowly). Imagine only 1% appreciation means about 100 billion rupees of direct taxes from the new entrants.

Tax revenue (% of GDP) | Data | Table

very disappointing results in taxation, a mere 15% increase has been seen in taxation the deficit is even lower than worst analyst expectation. PML N had predicted a 28% increase..

First of all, 15% is not mere. Although I do understand that we need to widen the tax net/horizon but achieving a growth rate of 15% should be appreciated. What 15% growth rate means is you literally double your tax revenue every 5 years. That is a big achievement for any nation. Imagine our direct tax revenue in 2009/10 was 461 billion rupees which stood about 975 billion rupees in 2013/14 - a net increase of over 100% in just 4 years. Yes if we impose taxes on many non-taxable items and increase the number of tax payees we can quickly increase the tax revenue but that is a different chapter.

the 15% means that PML N might have even performed worse than worst performance of PPPP. as most of this increase has been due to rupee devaluation, increase in sale tax and other indirect taxation.

I think it had nothing to do with the rupee devaluation since the price of dollar stays intact (close to 98). In fact the net increase in the tax revenue during the last government was not as significant as is the case with the current year since we were losing the value of rupee by 10% each year. That means if hypothetically speaking, PPPP achieved a growth rate of 25% it is not wrong to say that you take away 10% out of 25% to get the true value of the money.

the performance was decent during the first quarter @20% but it has been disastrous in last.

Lets keep the % aside for a moment, Imagine the total tax revenue in 2012/13 budget were 1,615,540 million rupees that is about 1600 billion rupees. Compare it with the budget 2013/14 revenue of 1900 billion rupees (1,917,708 million rupees). Net increase of about 300 billion rupees or 3 billion dollars in a single year.

Now compare it with the expected budget of 2014/15 - We are hoping to have the tax revenues 2345 billion rupees despite missing the target once again as always. That is a net increase of about 430 billion rupees (4.30 billion dollars) so it is not wrong to say that we managed to increase tax revenues by up to 7 billion dollars in just 2 years. It is not a big achievement but when you see the total budget of about 38 billion dollars and the net increase in tax collections of 7 billion dollars in 2 years... Despite posting low figures we can confidently say that we are heading towards the right direction. By this logic we might be aiming for 5 billion dollars increase in the next budget and perhaps 6-7 billion dollars in budget 2015-16. Not bad in my opinion

 

[ziaulislam]

I am really enjoying your posts since last few days as you are making lots of sense in your posts but you seems to have messed up here. I this-time disagree with your post. As per the world bank our total tax to gdp ratio has risen from 8.9% in 2009 to 10.1% so we must appreciate the fact that we are heading in the right direction (even though it's happening slowly). Imagine only 1% appreciation means about 100 billion rupees of direct taxes from the new entrants.

Tax revenue (% of GDP) | Data | Table



First of all, 15% is not mere. Although I do understand that we need to widen the tax net/horizon but achieving a growth rate of 15% should be appreciated. What 15% growth rate means is you literally double your tax revenue every 5 years. That is a big achievement for any nation. Imagine our direct tax revenue in 2009/10 was 461 billion rupees which stood about 975 billion rupees in 2013/14 - a net increase of over 100% in just 4 years. Yes if we impose taxes on many non-taxable items and increase the number of tax payees we can quickly increase the tax revenue but that is a different chapter.


I think it had nothing to do with the rupee devaluation since the price of dollar stays intact (close to 98). In fact the net increase in the tax revenue during the last government was not as significant as is the case with the current year since we were losing the value of rupee by 10% each year. That means if hypothetically speaking, PPPP achieved a growth rate of 25% it is not wrong to say that you take away 10% out of 25% to get the true value of the money.


Lets keep the % aside for a moment, Imagine the total tax revenue in 2012/13 budget were 1,615,540 million rupees that is about 1600 billion rupees. Compare it with the budget 2013/14 revenue of 1900 billion rupees (1,917,708 million rupees). Net increase of about 300 billion rupees or 3 billion dollars in a single year.

Now compare it with the expected budget of 2014/15 - We are hoping to have the tax revenues 2345 billion rupees despite missing the target once again as always. That is a net increase of about 430 billion rupees (4.30 billion dollars) so it is not wrong to say that we managed to increase tax revenues by up to 7 billion dollars in just 2 years. It is not a big achievement but when you see the total budget of about 38 billion dollars and the net increase in tax collections of 7 billion dollars in 2 years... Despite posting low figures we can confidently say that we are heading towards the right direction. By this logic we might be aiming for 5 billion dollars increase in the next budget and perhaps 6-7 billion dollars in budget 2015-16. Not bad in my opinion

15% is mere and i explained why, because you increased so many direct taxation like sales tax, withholding tax..anybody can do this. just increase in 1% sale tax translates into 80 billion rupees or 8% increase now minus this 8% you end up with just 8%!!!!. i am sure if we look carefully you will even see a decrease in direct taxation

sir rupee devaluation increased the export value in rupees so more money in taxes in rupees, this happened during first quarter so we saw a rapid and a good improvement in taxation in first quater but once the rupee recovered the taxation value decreased rapidly
you should always see taxation value in ratio to GDP, no real change was seen in tax to GDP ratio

PS. i am no fan of PTI, i dont think they would have done much better either judging from their performance in KPK

 

[Sugarcane]

Gencos are inefficient because haram-khoors are employed there, on other hand haram-khoor IPPs are looting the public and ba$$tards in parliament are getting their cuts from both. People should try to find a way to produce electricity for households by themselves. Necessity is mother of invention.

 

[Panther 57]

I am really enjoying your posts since last few days as you are making lots of sense in your posts but you seems to have messed up here. I this-time disagree with your post. As per the world bank our total tax to gdp ratio has risen from 8.9% in 2009 to 10.1% so we must appreciate the fact that we are heading in the right direction (even though it's happening slowly). Imagine only 1% appreciation means about 100 billion rupees of direct taxes from the new entrants.

If this increase is by increasing the tax net then it is good but if this increase is by increasing the tax on existing tax payers then it is bad. In our case it is the later.

Gencos are inefficient because haram-khoors are employed there, on other hand haram-khoor IPPs are looting the public and ba$$tards in parliament are getting their cuts from both. People should try to find a way to produce electricity for households by themselves. Necessity is mother of invention.

What i foresee suggests that house holds should switch to solar hybrid systems. It may have high installation cost, but we should see it in the light of near future electricity prices which is likely to touch Rs35 per unit. a normal house hold has 1.5- 2 KVa electricity load (baring air conditioners) this means in one hour they will be using approximately 1 unit i.e. equal to PKR35 per hour over 20 hours it is 700 per hour even if electricity price is increased to PKR20 per KW even then it is very much viable to go for hybrid system. We are already sitting at approximately PKR13-14 inclusive all.

 

[Sugarcane]

What 15% growth rate means is you literally double your tax revenue every 5 years.

You forgot to double digit inflation. If we minus inflation than actual revenue increase is not more than 5%