Demonetize the 5000, 1000 notes in Pakistan?

[H!TchHiker]

Well maybe they could implement this in the future and streamline things for the common man.

Yes, they should streamlined and further enhance the law to make things easier for common man.

 

[Khafee]

Yes, they should streamlined and further enhance the law to make things easier for common man.

From my visits and my friends I understand PKR50k to be a low amount. The min.threshold should have been at least 100k. But, that is just my personal opinion.

 

[H!TchHiker]

From my visits and my friends I understand PKR50k to be a low amount. The min.threshold should have been at least 100k. But, that is just my personal opinion.

Actually traders and retailers are the real culprits in this case.This law was introduced to bring them in net tax.If government increases the minimum threshold these traders will again eat the bigger slice.

 

[Khafee]

Actually traders and retailers are the real culprits in this case.This law was introduced to bring them in net tax.If government increases the minimum threshold these traders will again eat the bigger slice.

we have to think about the common man first. I know a friend who spent 300k on surgery, just imagine if one was in such an unfortunate predicament.

 

[H!TchHiker]

we have to think about the common man first. I know a friend who spent 300k on surgery, just imagine if one was in such an unfortunate predicament.

An unfortunate situation. Laws are evolved with time . I agreed with you on this government needs to provide some relief for a common man and specify some situations to grant exemptions.

 

[Naif al Hilali]

49,999 per day ...However if you are registered tax filer whatever tax you paid you can adjust it on filling annual tax return.

Bismillah ir Rahman ar Raheem

You are charged 0.6% withholding tax on total withdrawals higher than Rs. 50,000/- per day (including checks/ATM etc., bank fees not counting towards this limit I believe) from any one account. Govt. was thinking in June to require banks to consolidate the tracking of withdrawal limits for all your accounts within each bank so that the limit would collectively apply to all accounts held at any one bank - don't know how far that went.

Scholars advise to have as little to do with the global 'riba' (usury) based economy, seek Allah's forgiveness for the rest, and to keep as much of your money in gold, property, business investments as possible. Also a good idea to split money between foreign and local currencies - restrictions on one don't put you in a bind when you are facing an emergency.

Hifz u kum Allah

 

[Khafee]

Bismillah ir Rahman ar Raheem

You are charged 0.6% withholding tax on total withdrawals higher than Rs. 50,000/- per day (including checks/ATM etc., bank fees not counting towards this limit I believe) from any one account. Govt. was thinking in June to require banks to consolidate the tracking of withdrawal limits for all your accounts within each bank so that the limit would collectively apply to all accounts held at any one bank - don't know how far that went.

Scholars advise to have as little to do with the global 'riba' (usury) based economy, seek Allah's forgiveness for the rest, and to keep as much of your money in gold, property, business investments as possible. Also a good idea to split money between foreign and local currencies - restrictions on one don't put you in a bind when you are facing an emergency.

Hifz u kum Allah

Agree with you on the Riba part, but emergencies do arise, and cash is obviously king in a society where debit/credit card penetration is limited.

 

[Kaniska]

No way..
Watch the current status of India....
People are dying just for exchanging new notes..

It is just a matter of your interest of what do you like to see or hear. India is a nation of more than 120 crore people. If you take any step in make an impact, definitely few people will die because of some reason or other. That does not mean, i do not have respect for human life. But my objective is that in order to have a long term benifit, people have to sacrifice their short term gains. And this is what Indian are doing now.

So no, India nor Indian are protesting against the note ban is crazy way. There are few people who will protest irrespective of whatever Gov does at Center. It is due to their own political positioning rather than fact on the ground.

 

[Zibago]

What is the min. cash that can be withdrawn without the tax being incurred?

49,999

 

[Naif al Hilali]

49,999

50,000 brother; I have drawn it many times. 50,001 is where withholding tax starts.

Also if you write a check for Rs. 1,000,000 your bank is obliged to inform State Bank (actually a red flag is automatically thrown up at SBP). Does not apply if you write ten checks (or twenty) for Rs. 999,999

 

[Pakistanisage]

Getting rid of 5,000 Rupee note would go a long way to curb corruption and black money in Pakistan. Simply have prepaid accounts backed by CNIC's to track transactions. Put stiff penalties on banks for opening accounts under Driver or Janitor's name. Each Account holder should establish their Bank Account after giving proper details regarding their jobs. Accounts should not be opened for " Non-Filers " of Tax Returns.

49,999

I am pretty sure the limit is Rupees 50,000.

 

[livingdead]

Just like India, the impact on black money will be marginal... the best guess(even govt agrees) that we are going after around 7 percent black money(most of it is tied in real estate, gold, foreign currency). The cost of it could be huge, individually we might think we are sacrificing for country, but it will have negative impact on growth and jobs. Its not clear whether the exercise is worth the effort.
Also govt of India could keep it secret till the last hour(essential part of the exercise), can pak govt do?

 

[Zibago]

Getting rid of 5,000 Rupee note would go a long way to curb corruption and black money in Pakistan. Simply have prepaid accounts backed by CNIC's to track transactions. Put stiff penalties on banks for opening accounts under Driver or Janitor's name. Each Account holder should establish their Bank Account after giving proper details regarding their jobs. Accounts should not be opened for " Non-Filers " of Tax Returns.




I am pretty sure the limit is Rupees 50,000.

People are avoiding bank accounts altogether because of with-holding tax
Number of active accounts has dropped and i dont think eliminating 5000 would do anything because majority of illegal transactions are done in Dollars

So in that case someone who own a taxi or is a carpenter cant have an account nope the non filer thing is silly some people have varying income levels why punish them?

The criteria should be anyone who had more than 5 lakh and his past history shown transactions over 1 lakh every month should face with-holding tax only

 

[Pakistanisage]

People are avoiding bank accounts altogether because of with-holding tax
Number of active accounts has dropped and i dont think eliminating 5000 would do anything because majority of illegal transactions are done in Dollars

So in that case someone who own a taxi or is a carpenter cant have an account nope the non filer thing is silly some people have varying income levels why punish them?

The criteria should be anyone who had more than 5 lakh and his past history shown transactions over 1 lakh every month should face with-holding tax only

Pakistan's Tax Rate is one of the lowest in the World.

If you make a Rs.400,000 annually or less , you pay zero taxes.

if you make 600,000 annually, you pay Rs. 7,000 tax for the whole year.

In other words, if your salary is Rs. 50,000 a month, you tax withholding is Rs. 583.

At those rates everybody should file tax return and get all the benefits of being an active filer.

BTW, all salaried employees Pay taxes ( Taxes are withheld by employer automatically at the source ), but most fail to file returns and thus lose out on benefits that accrue to Tax Filers, which makes little or no sense. As a salaried person you are already paying taxes. Why not file returns and get the status of active Tax Filer. Filing Tax Returns is free on FBR Website.

 

[xyxmt]

Amount of corruption is directly related to the size of Currency notes, I will go as far as saying price is also effected once you introduce bigger currency. example if you bigger currency is Rs. 100 and price of commodity A is Rs. 460, with the availibility of Rs. 500 notes price of commodity A will reach 500...reason: in a cash economy retailers like to keep fewer currency notes as possible.

take 1000 and 5000 currency notes out of circulation and half of Pakistan's problem will go away.