FBR seeks to recover lifetime tax from small cars owners

[LeGenD]

Its a simple equation, when people stop buying or utilising cars then you don't get any of the enlisted taxes. A company which pays billions in taxes to the government will have to roll out its business, once it's sales are down, and you have Toyota and Honda's example in this regard. Sensing on these trends why would Renault, Hyundai, KIA be interested in a market when the purchasing power in almost negligible?

Excellent point, bro.

If established automakers loose business in Pakistan, newcomers will leave as well.

GOP should not blindly impose taxes on everything that moves. It is important to understand market situations in Pakistan.

To keep the air clean people pay road tax in UK. You would have a similar tax in Germnay. You pay water bill in Germany and tax is included in that isnt it. Land tax hmm. I have to pay council tax in the UK do you have something similar in Germany. And all these taxes I pay after paying the income tax at 40%+.

Again, these are 'developed' countries.

Developed implies that they have lot of stuff in order and systems are carefully implemented after scientific evaluation of various realtities including market conditions. Population is also very small and population growth is very low.

In Pakistan, economic order and livelihood realities of people are much different, and many are barely able to make ends meet already. Public facilities are also lacking (health; education; returns on potential savings - all are below expectations and many do not have these benefits in the first place). On the other hand, cost of livelihood is increasing for all (inflation trends continue) due to dysfunctional economy and corruption in all levels of Public work.

Best course of action is to convince people to become filers and legalize their wealth - throughout Pakistan. However, FBR does not have a sound strategy for this end.

Secondly, FBR need to focus on people who have lot of money but do not pay taxes. These type of people are common in the Real Estate business, traders and rent collectors in general. How hard it is to create teams for the needful and put them to work?

It make ZERO sense to penalize existing tax base even further. These people are expecting relief from GOP, not additional burden of taxes. Relief should be particularly provided to widows, old, and those who are on rent (living and/or business).

 

[VCheng]

Best course of action is to convince people to become filers and legalize their wealth - throughout Pakistan. However, FBR does not have a sound strategy for this end.

Secondly, FBR need to focus on people who have lot of money but do not pay taxes. These type of people are common in the Real Estate business, traders and rent collectors in general. How hard it is to create teams for the needful and put them to work?

It make ZERO sense to penalize existing tax base even further. These people are expecting relief from GOP, not additional burden of taxes. Relief should be specially provided to widows, old and those who are on rent.

Nobody wants complete documentation for the underground economy because too many interests are vested in that. Given this reality, why would FBR do what is basic tax management? Further, in such a situation, it makes perfect sense to squeeze those who are already hard up to show something is being done, and continue to rely on ratcheting up indirect taxes to keep the regressive taxation model going.

These are all conscious decisions by a system that is perfectly designed to achieve the results that it does.

 

[LeGenD]

Nobody wants complete documentation for the underground economy because too many interests are vested in that. Given this reality, why would FBR do what is basic tax management? Further, in such a situation, it makes perfect sense to squeeze those who are already hard up to show something is being done, and continue to rely on ratcheting up indirect taxes to keep the regressive taxation model going.

These are all conscious decisions by a system that is perfectly designed to achieve the results that it does.

This sound like an excuse for sparing black money makers and exploiters from accountability. Sorry friend, this model will not work for indefinite period. Either entire Pakistan is subject to accountability or this nonsense should be dropped. Selective accountability will not do.

 

[VCheng]

This sound like an excuse for sparing black money makers and exploiters from accountability. Sorry friend, this model will not work for indefinite period. Either entire Pakistan is subject to accountability or this nonsense should be dropped. Selective accountability will not do.

Yes. But see what is happening on the ground, not what is being claimed.

 

[Cent4]

so?

what does this has to do with oppression of Muslims in Pakistan?

oppression of Muslims in Pakistan? By who ? Hindus of Pakistan ?

Again, these are 'developed' countries.

Developed implies that they have lot of stuff in order and systems are carefully implemented after scientific evaluation of various realtities including market conditions. Population is also very small and population growth is very low.

In Pakistan, economic order and livelihood realities of people are much different, and many are barely able to make ends meet already. Public facilities are also lacking (health; education; returns on potential savings - all are below expectations and many do not have these benefits in the first place). On the other hand, cost of livelihood is increasing for all (inflation trends continue) due to dysfunctional economy and corruption in all levels of Public work.

Best course of action is to convince people to become filers and legalize their wealth - throughout Pakistan. However, FBR does not have a sound strategy for this end.

Secondly, FBR need to focus on people who have lot of money but do not pay taxes. These type of people are common in the Real Estate business, traders and rent collectors in general. How hard it is to create teams for the needful and put them to work?

It make ZERO sense to penalize existing tax base even further. These people are expecting relief from GOP, not additional burden of taxes. Relief should be particularly provided to widows, old, and those who are on rent (living and/or business).

Everyone needs to pay thier due share of Tax, be it rich, middle class or the poor. Paying tax in between the range of 1%-5% is not equal to "penalising existing tax base even further".

We complain about paying few percent tax but want services/subsidies from govt of developed countries.

 

[The Accountant]

Guys did anybody read the law ? I havent and will check ...

But apparently the OP is saying that if a person is opting for life time road tax on a car then he will also have to pay life time income tax.

Apparently fbr collects tax each year at the time of token tax but if a car owners opts for life time token then he will be charged one time higher token tax however on the otherisde the withholding income tax was still for one year. Now FBR has increased the withholding tax as he will not have to pay annual income tax each year ... its bit justified and optional as well ... if you want to keep yourself on normal regime that is annual token tax and annual income tax there will no impact ... if u chose for life time tax you need to pay one time much higher income tax and token tax

 

[darksider]

PTI k chutiyapay khatam hi nahin hotay bc.


Honest leader awam ko zaleel kiye khara ha.

hahaha
is zalaalat ki koi intahha hi nahi nazar a rahi.phely aik sell laney ki ajazat di without tax.
ab koi aik personal set b nahi la sakta without tax or bahir waley logo ko kehtey hain dollars bejo.lekin koi sahulat nahi deni.

 

[RoadRunner401]

Its a simple equation, when people stop buying or utilising cars then you don't get any of the enlisted taxes. A company which pays billions in taxes to the government will have to roll out its business, once it's sales are down, and you have Toyota and Honda's example in this regard. Sensing on these trends why would the new market entrants like Renault, Hyundai, KIA be interested in a market where the purchasing power is almost negligible?

Please for the love of God keep your failed logic to yourself, If direct or indirect taxation killed the economies all G7 Nations, where even flushing the toilet cost money would be bankrupt.

Why are you comparing US with Pakistan in this matter? Completely different environments with livelihood realities.

Why people in the United States don't pay taxes and government revenues grows on trees?. your gibberish about Pakistani indirect taxation is just nonsense. I'll be more than happy to compare it to any nation in the world.

The most important step that Pakistan can take is to pass meaningful reforms that can expand its tax base,“I know how difficult it is, but it is absolutely unacceptable for those with means in Pakistan not to be doing their fair share to help their own people.” Pakistan must urgently mobilize its own resources and the international community can only do so much.

 

[TheNoob]

Guys did anybody read the law ? I havent and will check ...

But apparently the OP is saying that if a person is opting for life time road tax on a car then he will also have to pay life time income tax.

Apparently fbr collects tax each year at the time of token tax but if a car owners opts for life time token then he will be charged one time higher token tax however on the otherisde the withholding income tax was still for one year. Now FBR has increased the withholding tax as he will not have to pay annual income tax each year ... its bit justified and optional as well ... if you want to keep yourself on normal regime that is annual token tax and annual income tax there will no impact ... if u chose for life time tax you need to pay one time much higher income tax and token tax

Stop speaking sense.

People here just want to be emotional on their own assumptions!

 

[Sheepistanis]

Please for the love of God keep your failed logic to yourself, If direct or indirect taxation killed the economies all G7 Nations, where even flushing the toilet cost money would be bankrupt.

That's not my logic, it's a statement of facts. Your ignorance isn't a good enough reason to fabricate ground realities for your personal sake.
Due to unrestrained and mammoth barrage of taxes, auto sales are down. Those who believe that this will not effect one of the most productive industry along with the governments revenue slot in any way then there is nothing to be discussed here.
Car sales fall in eight months
https://www.dawn.com/news/1469157

Taxes aren't the only contributing factor in an economy, parroting' Taxes Taxes' alone won't change anything. Seizing taxes at the cost of dwindling living standards will entail serious repercussions for a government that has no plan of giving anything back to the public unlike the G7, not to mention your analogy is seriously out of place when there is an astounding disparity in the per-capita income amongst Pakistan and the G7 states.