GDP is not going down, No Slow Growth in PAKISTAN Says Chairman FBR Shabbar Zaidi

[nahtanbob]

pakistan 40% economy is informal to avoid high taxation.
government had two options
1. confiscate that informal economy
2. give amnesty to regularize it with amnesty scheme

confiscate would cripple the livelihood of informal economy. you are assuming everyone involved in the informal economy is well to do. you are looking at a lot of short term social unrest

 

[blueazure]

we pay the following 'output' taxes in pakistan ,

1. 17 perc GST on all restaurants

2. almost 30 percent tax on loading mobile card top ups ( everyone has to pay this , even zardari )

3. we have taxes built in for elec and gas bills ( elec and gas tarriffs have been hiked already )

4. massive tarriffs in the form of duties and reg cost for vehicles

5. we pay WHT on bank transactions

6.we even have tax on internet bills


this, on top of a devalued currency
-----------------------------------------------

shabbar zaidi is lying and a charlatan. the problem is not tax collection, the problem is that the PTI govt is PUSS.Y

they cannot extract a single penny from zardari and nawaz, yet want to squeeze the life out of a street vendor ( part of informal economy ) .

i see a peasant revolt soon................

https://en.wikipedia.org/wiki/Peasants'_Revolt

 

[1Paki$tani]

we pay the following 'output' taxes in pakistan ,

1. 17 perc GST on all restaurants

2. almost 30 percent tax on loading mobile card top ups ( everyone has to pay this , even zardari )

3. we have taxes built in for elec and gas bills ( elec and gas tarriffs have been hiked already )

4. massive tarriffs in the form of duties and reg cost for vehicles

5. we pay WHT on bank transactions

6.we even have tax on internet bills


this, on top of a devalued currency
-----------------------------------------------

shabbar zaidi is lying and a charlatan. the problem is not tax collection, the problem is that the PTI govt is PUSS.Y

they cannot extract a single penny from zardari and nawaz, yet want to squeeze the life out of a street vendor ( part of informal economy ) .

i see a peasant revolt soon................

https://en.wikipedia.org/wiki/Peasants'_Revolt

Really??

There are two sets of problems with our taxation system.

1. All of the tax mentioned above are collected by the Companies or business and it should thereafter be passed on to the government. However, the companies collect this massive amount of tax but under report their sale or simply dont pay up the tax.

Thus though average joe might pay all this tax it does not end up in government's pockets as it should. So there is collection problem.

Neither he nor PTI government is lying about it.

Need to get rid of your tunnel vision where you seems to find all ill in PTI government. Good luck when PML N or PPP come in.

2. There is problem with our income taxation system. Only 1 percent of our population pays tax.

I know countless of people who earn above 50laks a year yet pay zero tax on it. in Australia income of $50,000 (=50lakhs) attracts tax of about $7,797.00 or 7.7 lakhs.

Similarly income of 5 crores or $500k has income tax of $198k or 1.98 crores. Why am I quoting this. well because (a) people dont want to pay income tax and have massive collection problem. (b) when they want to pay they dont want to pay the right amount right share.

The figure of 5 cror is valid because many tv anchors earn that much or more yet when they are asked to pay income of few lakhs they were crying out. I have called few of them out on twitter on what they should actually be paying.

So stop spreading illogical and crap without going into details and substance of the problem. We are nation of free loaders. I saw people complaining how beauty parlour in Karachi are poor and we should not tax them. Has anyone been to one or paid for one? they charge arm and leg. Any decent one would charge over 5k for small session and those who are regarded as best charge 50k for small session. All that is not taxed.

 

[Falcon26]

I hope the FBR Chairman is correct. I think the current govt's feet is being forcefully drawn to the fire by media, politicians and the general population and so people are working feverishly to correct the wrongs of past decade.

PS. Mr. Zaidi does remind me of India's General Bakshi

He looks like Zardari. A lite version of Zardari

 

[Meengla]

He looks like Zardari. A lite version of Zardari

You know...I sort of agree with you: Mr. Zaidi does have some resemblance with Zardari... but still... there is some with General Bakshi as well. Hmmmmmmmm!! Think Homer Think, Think! Think!

 

[ziaulislam]

we pay the following 'output' taxes in pakistan ,

1. 17 perc GST on all restaurants

2. almost 30 percent tax on loading mobile card top ups ( everyone has to pay this , even zardari )

3. we have taxes built in for elec and gas bills ( elec and gas tarriffs have been hiked already )

4. massive tarriffs in the form of duties and reg cost for vehicles

5. we pay WHT on bank transactions

6.we even have tax on internet bills


this, on top of a devalued currency
-----------------------------------------------

shabbar zaidi is lying and a charlatan. the problem is not tax collection, the problem is that the PTI govt is PUSS.Y

they cannot extract a single penny from zardari and nawaz, yet want to squeeze the life out of a street vendor ( part of informal economy ) .

i see a peasant revolt soon................

https://en.wikipedia.org/wiki/Peasants'_Revolt

And this amounts to barely 1-5% of rich-middle class income..
Let me break it to you MR..go live in Sudan or syria because no country in the world..i repeat no country in the world can live without people paying 30-50% of their income as tax..so i recommend people going to these african countries or migrating to Afghanistan ..as in europe & america you pay 50% tax and no you dont get free education or free health in USA

A middle class income is 30-150k
Minimum wage is 12-15k
Upper middle is 150-300k

If i assume that you spend everything on taxable buying items you still at maximum end up paying only 17% ..which is lowest income bracket tax in USA ..i.e even beggers are suppose to pay 10-15%

Bottom line..leave the country if you arent ready to pay 30% of your income as tax

 

[SIPRA]

... but still... there is some with General Bakshi as well.

You are right, but please don't say it. I fear that Mr. Zaidi may come on TV one day and utter loudly:

"Yeh koi randi khaana hae?"

 

[Abdussamad]

The people who are avoiding taxes have accounts with the govt owned SBP and the SBP categorically refuses to disclose the owners of these accounts to the FBR, let alone the value of those accounts.

State Bank of Pakistan (SBP) is the name of Pakistan's central bank. It is not a commercial bank. It is the government's banker and regulator of financial institutions. The indian equivalent would be the RBI. Individuals don't have accounts with the SBP.

I agree with the rest of what you said though.

 

[Turingsage]

It is the government's banker and regulator of financial institutions. The indian equivalent would be the RBI. Individuals don't have accounts with the SBP.

The FBR and SBP both appear to agree accounts held with SBP. Presumably SBP allows this to pump up its figures of currency holdings.

"
ISLAMABAD:

The government decision to peep into bank accounts of all those having more than Rs500,000 balance with a view to bringing them into the tax net has faced a jolt after the State Bank of Pakistan refused to provide the information on account of ‘secrecy laws’.

The Federal Board of Revenue (FBR) had sought the cooperation from the central bank after it found out that hardly 10% of over 50 million bank account holders were income tax filers. “The existing legal framework provides constraints on procuring and sharing of privilege/confidential information relating to the affairs of the banks’ customers”, the SBP wrote to the FBR on Monday."

https://tribune.com.pk/story/1986993/2-sbp-turns-fbr-request-data-account-holders/

 

[nahtanbob]

And this amounts to barely 1-5% of rich-middle class income..
Let me break it to you MR..go live in Sudan or syria because no country in the world..i repeat no country in the world can live without people paying 30-50% of their income as tax..so i recommend people going to these african countries or migrating to Afghanistan ..as in europe & america you pay 50% tax and no you dont get free education or free health in USA

A middle class income is 30-150k
Minimum wage is 12-15k
Upper middle is 150-300k

If i assume that you spend everything on taxable buying items you still at maximum end up paying only 17% ..which is lowest income bracket tax in USA ..i.e even beggers are suppose to pay 10-15%

Bottom line..leave the country if you arent ready to pay 30% of your income as tax

big difference between USA and Pakistan: you get something back from the state in USA
Europeans pay more and get more from their government

What do Pakistanis get ??

 

[blueazure]

Really??

There are two sets of problems with our taxation system.

1. All of the tax mentioned above are collected by the Companies or business and it should thereafter be passed on to the government. However, the companies collect this massive amount of tax but under report their sale or simply dont pay up the tax.

Thus though average joe might pay all this tax it does not end up in government's pockets as it should. So there is collection problem.

Neither he nor PTI government is lying about it.

Need to get rid of your tunnel vision where you seems to find all ill in PTI government. Good luck when PML N or PPP come in.

2. There is problem with our income taxation system. Only 1 percent of our population pays tax.

I know countless of people who earn above 50laks a year yet pay zero tax on it. in Australia income of $50,000 (=50lakhs) attracts tax of about $7,797.00 or 7.7 lakhs.

Similarly income of 5 crores or $500k has income tax of $198k or 1.98 crores. Why am I quoting this. well because (a) people dont want to pay income tax and have massive collection problem. (b) when they want to pay they dont want to pay the right amount right share.

The figure of 5 cror is valid because many tv anchors earn that much or more yet when they are asked to pay income of few lakhs they were crying out. I have called few of them out on twitter on what they should actually be paying.

So stop spreading illogical and crap without going into details and substance of the problem. We are nation of free loaders. I saw people complaining how beauty parlour in Karachi are poor and we should not tax them. Has anyone been to one or paid for one? they charge arm and leg. Any decent one would charge over 5k for small session and those who are regarded as best charge 50k for small session. All that is not taxed.

Nonsence


state isnt that feeble or pus.sy .

what you mention are a few sheep and loopholes.


i know a factory owner in lahore, they pay input tax on raw materials imported from china ( cant avoid that ) , they pay income tax against employee salaries and benefits . they are paying 19 percent tax on electric bills.

the tax you talk about is the 'jagga tax' on the above company's profit AFTER tax . and NO ONE pays that, not even google and facebook.

 

[Abdussamad]

What do Pakistanis get ??

Protection of the grand military which has never won a war and which breeds terrorists that freely kill pakistanis.

 

[nahtanbob]

Protection of the grand military which has never won a war and which breeds terrorists that freely kill pakistanis.

it sounds more like a mafia

 

[Gorgin Khan]

And this amounts to barely 1-5% of rich-middle class income..
Let me break it to you MR..go live in Sudan or syria because no country in the world..i repeat no country in the world can live without people paying 30-50% of their income as tax..so i recommend people going to these african countries or migrating to Afghanistan ..as in europe & america you pay 50% tax and no you dont get free education or free health in USA

A middle class income is 30-150k
Minimum wage is 12-15k
Upper middle is 150-300k

If i assume that you spend everything on taxable buying items you still at maximum end up paying only 17% ..which is lowest income bracket tax in USA ..i.e even beggers are suppose to pay 10-15%

Bottom line..leave the country if you arent ready to pay 30% of your income as tax

First, Sudan and syria both are richer than you , right now the problems are wars and corruption not money itself there. Before coming up with suggestions which you dont have any clue about, first go and study in detail about your references.

Tell me, people in which country pays 30 to 40 percent tax? And kindly bother to look at the income of their middle and upper middle class. The minimum wage in such countries is 1500 dollars few have more few have less. Their middle class or white collar workers earns 40 - 60 k a year, forget about the upper class. Some countries have social security systems where you get a sum from the government every month ? What will the people of pakistan get in return? Will the government abolish the heavy taxes on every consumer product ? mobile , telephone bills, electricity , petrol , food items etc etc etc ? will we get a social security ? will we get infrastructure like the developed countries ? Or you just want people to pay tax so the people in the system has money to loot ? Do you think that pakistani people trust their system ? If they did they would already have started paying. Its rather easier said than being done , Manipulated numbers dont prove any thing, Your suggestions are always good but your comparisons are always wrong and a suggestion without solution to problem is worthless.

Stop comparing the systems of developed countries to ours , because the comparison itself is criminal.

 

[nahtanbob]

And this amounts to barely 1-5% of rich-middle class income..
Let me break it to you MR..go live in Sudan or syria because no country in the world..i repeat no country in the world can live without people paying 30-50% of their income as tax..so i recommend people going to these african countries or migrating to Afghanistan ..as in europe & america you pay 50% tax and no you dont get free education or free health in USA

A middle class income is 30-150k
Minimum wage is 12-15k
Upper middle is 150-300k

If i assume that you spend everything on taxable buying items you still at maximum end up paying only 17% ..which is lowest income bracket tax in USA ..i.e even beggers are suppose to pay 10-15%

Bottom line..leave the country if you arent ready to pay 30% of your income as tax

Half the people in USA pay little or no income tax. there is sales tax, property tax. Of courses there are user fees and tolls etc. People in USA gets Social Security, Medicare, Medicaid, free K-12 education (sometimes of poor quality), free public libraries, 911 system

You are not winning the argument for people to pay taxes if there is nothing in the way of services to show for those taxes