Economy tiptoes towards cash to avoid taxation

[I.R.A]

What must Pakistan do to turn the ship around and fight the river current?

Make the river (system) flow the right direction. People are inclined to support a system that is transparent and friendly. The collections should make Pakistanis feel that those have been spent for their betterment and welfare.

 

[Hellfire]

What must Pakistan do to turn the ship around and fight the river current?

Abki baar Modi Sarkar!!!!

They must follow what is being done in India to check the very same problem ..... will they?

@Syed.Ali.Haider

 

[AsifIjaz]

The answer to many woes faced by Pakistan lies in abolishing the 5000 ruppee note. Be it corruption, parallel trading, undocumented economy or cash dealing... all will decrease by removing the 5000 rupee note.

 

[Zibago]

Yaar Zibago, posting stories from Tribune?

Oh kiya ho gya bhai ? Why are giving importance to this shyte paper?

(Writing this without reading the "news", because as a matter of principle I do not read/watch DAWN, GEO and Tribune)

I still post from Express Tribune because they flip flop on on issues and occasionaly do post good stuff
my boycott is limited geo and dawn to a degree
The paper i read the most is nation.pk

The answer to many woes faced by Pakistan lies in abolishing the 5000 ruppee note. Be it corruption, parallel trading, undocumented economy or cash dealing... all will decrease by removing the 5000 rupee note.

Nope people will buy bonds and/or dollars for saving it will harn economy even more

 

[AsifIjaz]

I still post from Express Tribune because they flip flop on on issues and occasionaly do post good stuff
my boycott is limited geo and dawn to a degree
The paper i read the most is nation.pk


Nope people will buy bonds and/or dollars for saving it will harn economy even more

Nope zibago... the reason i said so are
1) the blatant demand for a single note for moving your file to the next desk or next level. Accepting 1 or 2 notes vs 5/10 notes does make a difference in terms of the physical/ bulk of the money that can not be given during a handshake ( i hope you get what i am trying to say here).
2) It also would make it difficult for traders to carry anything above half a million. As for now you can carry a hundred note to buy your stock. this would increase to 500 notes hence the need for a safe and secure bank transfer.
3) The problem with Bond is that manyyyyy traders do not accept them due to non trading period or fake bonds. But then there are communities or bazars that deal in bonds extensively (one good example is nankana distt, this remark is based upon my personal experience).
4) some business communities are against banks since decades now. The 5000 note suits them and facilitates their practice. The government needs to create an environment for using banking channels, not facilitate the other side.

 

[Zibago]

Nope zibago... the reason i said so are
1) the blatant demand for a single note for moving your file to the next desk or next level. Accepting 1 or 2 notes vs 5/10 notes does make a difference in terms of the physical/ bulk of the money that can not be given during a handshake ( i hope you get what i am trying to say here).
2) It also would make it difficult for traders to carry anything above half a million. As for now you can carry a hundred note to buy your stock. this would increase to 500 notes hence the need for a safe and secure bank transfer.
3) The problem with Bond is that manyyyyy traders do not accept them due to non trading period or fake bonds. But then there are communities or bazars that deal in bonds extensively (one good example is nankana distt, this remark is based upon my personal experience).
4) some business communities are against banks since decades now. The 5000 note suits them and facilitates their practice. The government needs to create an environment for using banking channels, not facilitate the other side.

the big dogs will start trading in non native currency eliminating 5000 will only affect small fries and that too very mildly

This massive boycott of banks isnt certain bussinesses only but its by average citizens and small bussiness owners because of with-holding tax we need to do away with this law before it harms us more

And on issue of bond well i mentioned them because a lot of citizens are now buying them instead of depositing money in banks

 

[AsifIjaz]

agreed... but elimination of 5000 will atleast force a couple of thousand traders to deal via bank. In time this would translate to a couple of thousands more who will be trading with these traders who have recently switched to banking channels.
in order to promote banks and taxation... every thing offered by the government or anything that is subsidized by the government (over and above basic essentials) should require a tax return.
it will be only in 5/6 years that this policy would yield return. We need a consistent approach for scratching this mentality out of the society. We are like individual termites, we eat away the very foundation that we live in and then complain that the government is not doing anything while we eat away the very roots and foundation ourselves.

 

[Zibago]

agreed... but elimination of 5000 will atleast force a couple of thousand traders to deal via bank. In time this would translate to a couple of thousands more who will be trading with these traders who have recently switched to banking channels.
in order to promote banks and taxation... every thing offered by the government or anything that is subsidized by the government (over and above basic essentials) should require a tax return.
it will be only in 5/6 years that this policy would yield return. We need a consistent approach for scratching this mentality out of the society. We are like individual termites, we eat away the very foundation that we live in and then complain that the government is not doing anything while we eat away the very roots and foundation ourselves.

When you have a system where have nots pay 15% of their earning in taxes and haves pays less than 10% you will have huge problems

Nope it wont they would still deal in cash the bhatta tax needs to go they should be more realistic in their tax regime

 

[I.R.A]

agreed... but elimination of 5000 will atleast force a couple of thousand traders to deal via bank. In time this would translate to a couple of thousands more who will be trading with these traders who have recently switched to banking channels.
in order to promote banks and taxation... every thing offered by the government or anything that is subsidized by the government (over and above basic essentials) should require a tax return.
it will be only in 5/6 years that this policy would yield return. We need a consistent approach for scratching this mentality out of the society. We are like individual termites, we eat away the very foundation that we live in and then complain that the government is not doing anything while we eat away the very roots and foundation ourselves.

The least expected of this government is to make the return filing process easy ................. someone has an itch in the butt and online system keeps changing. You cannot expect a retailer to file his online return unless he understands it. Have some sympathy for people who genuinely want to file the return but when they go through the hardship all they do is "To hell with this".

 

[VCheng]

Abki baar Modi Sarkar!!!!

They must follow what is being done in India to check the very same problem ..... will they?

@Syed.Ali.Haider

May be they will. May be they won't. It is up to them. I do not care either way.

 

[Faiez]

When you have a system where have nots pay 15% of their earning in taxes and haves pays less than 10% you will have huge problems

Nope it wont they would still deal in cash the bhatta tax needs to go they should be more realistic in their tax regime

First go and look at the tax rates...then come back and tell me if the rates are fair. Seriously, DO check out Pakistani tax rates (personal income tax and corporate tax).

 

[I.R.A]

First go and look at the tax rates...then come back and tell me if the rates are fair. Seriously, DO check out Pakistani tax rates (personal income tax and corporate tax).

Not fair .........

 

[Faiez]

Not fair .........

There you go then...

And besides, better to pay the relatively poor tax collector 5-10%, at least he spends most if not all of that money INSIDE Pakistan, instead of taking it to Switzerland, where the same 5-10% tax goes when you pay to the government.

 

[I.R.A]

There you go then...

And besides, better to pay the relatively poor tax collector 5-10%, at least he spends most if not all of that money INSIDE Pakistan, instead of taking it to Switzerland, where the same 5-10% tax goes when you pay to the government.

That's not an option now, there are legal consequences and some prerequisites to get your business rolling.

 

[Faiez]

That's not an option now, there are legal consequences and some prerequisites to get your business rolling.

But my point is still valid. There are real, solid reasons why not to pay tax if you can dodge it.