‘Black economy’

[newb3e]

How are the poor being taxed when out of 200 million people only 1 million pay taxes?

indirect taxes!

 

[Rusty]

They say our informal economy is as large as our formal economy. Roughly worth more than $300 billion a year.

Taxing the rich is something that they should do. The problem with that is rich people can afford smart accountants that exploit loopholes. The other problem is corruption, why would you declare black money when you know NAB will raid? Getting rid of corruption should be seen as a priority.

Sometimes I want a French Revolution style revolution in Pakistan.
Lynch all the corrupt and corrupt enablers in the governent.

 

[Sine Nomine]

The PTI killed transactions-and killed economic growth.

And then sign up for the IMF programme ASAP.

How cute

 

[fisher1]

Sometimes I want a French Revolution style revolution in Pakistan.
Lynch all the corrupt and corrupt enablers in the governent.

That is the only way this country will ever progress.

We can keep electing different faces all we want but the same people who come to power through this system will never want to change it.

 

[The Diplomat]

No, I don't because everyone pays the same prices without any discrimination.

Do you think when a poor man goes to a shop to buy a trouser, he goes to the taxable trouser section and the rich person goes to a non-taxable section?

Your understanding of economics is vague. Indrect taxes are taxes on spending, for example VAT. Indirect taxes hurt the poorest people most as you will have to pay more of your income per centage than a rich person. Direct taxes don’t hurt the poor as much as direct as excemptions are given.

 

[bananarepublic]

They say our informal economy is as large as our formal economy. Roughly worth more than $300 billion a year.

Taxing the rich is something that they should do. The problem with that is rich people can afford smart accountants that exploit loopholes. The other problem is corruption, why would you declare black money when you know NAB will raid? Getting rid of corruption should be seen as a priority.

The problem is that the honest middle class and the rich are overtaxed while those who use loopholes don't pay anything.
There is a reason why many middle class and rich Pakistanis move out of the country when given the chance.
The problem isn't that we are paying less tax but it the miss use of that tax money

 

[313ghazi]

Wow. So you don't count the tax on gas, electricity, food, clothing, medicines, calls etc....
Every Pakistani pays tax. How do you think the government is working.....

Doesn't mean that taxes are not paid. Everything from mobile phone plans, utilities, petroleum products to drugs are heavily taxed. And these things are input to value added products. Even banking transactions are taxed EQUALLY for everyone. Indirect taxation.

All this unfair and indirect taxation manages to get the Gov TRILLIONS of PKR. And yet we are in a perpetual state of deficit. That was the point.

So you don't count the taxes on petroleum, mobile cards, GST as taxes?

Indirect taxation is the worst kind of taxation, as it doesn't discriminate between those with the means to pay, and those without. It's also focused on essentials, where people often don't have the choice not to purchase them.

The only way out of that is to pay more income/wealth tax, and reduce the burdern of indirect taxes.

Alternatively the government could reduce the indirect taxes, not increase direct taxes and just spend less money, on things like defence, education, health, infrastructure, energy etc.

Pakistan cannot have it's cake and eat it at the same time.

 

[Rusty]

That is the only way this country will ever progress.

We can keep electing different faces all we want but the same people who come to power through this system will never want to change it.

I guess I was naive to think PTI can clean house fast. They are doing their best but the rot is so deep that maybe we should pull the life support and start from scratch.

 

[The Diplomat]

I guess I was naive to think PTI can clean house fast. They are doing their best but the rot is so deep that maybe we should pull the life support and start from scratch.

PTI devalued the currency in a bid to make our domestic goods and services more competitive. Stronger Rupee imports cheaper, exports dearer hence weaker rupee imports dearer exports cheaper. The government tried to make our exports more competitive to improve the balance of payment deficit however the trade off to this is inflation.

It’s a sticky situation to be in.

 

[Bouncer]

Indirect taxation is the worst kind of taxation, as it doesn't discriminate between those with the means to pay, and those without. It's also focused on essentials, where people often don't have the choice not to purchase them.

The only way out of that is to pay more income/wealth tax, and reduce the burdern of indirect taxes.

Alternatively the government could reduce the indirect taxes, not increase direct taxes and just spend less money, on things like defence, education, health, infrastructure, energy etc.

Pakistan cannot have it's cake and eat it at the same time.

Ghazi sb, I did not mean to advocate for indirect taxation. I agree that it is the worst form of taxation as it burdens the financially week more. My point was that GoP collects a HUGE amount even though its through indirect taxation when it should be more inclined towards an income based slabbed taxation. But that's not the point right now.

Point is that clearly we are not spending our monies right. Interest payments are one big leaking hole in our pocket. Defense expenses are another (I do not buy the concocted figures pushed around by ISPR). Health and education do not receive nearly as much as they should.