How FBR can be improved?

[HammerHead081]

On the top of my head

1.) Total overhaul of UI of website, made easy to file taxes. Website available in Urdu by default and English optional.

2.) Proper tutorial given by video in both app and website on how to file taxes and what each term means.

3.) More and even better incentives given to tax fillers.

4.) Small offices around each city where tax fillers will file tax for you.

We need FBR to be improved because it is one of the major things that will improve our economy. For those who don't know, it was recorded in 2013 that only 0.57% Pakistanis are filling taxes which is a complete joke and shows incompetency of FBR.

 

[Yaseen1]

there are loop holes in tax laws which can be easily exploited to evade or pay less tax and those who have knowledge of taxation know this as reflected by audit firm partner of Aff fergosun in national tax conference like final tax income for which tax payer is not required to file return and submit details of money trail such as investment in prize bonds

 

[TheNoob]

Pakistan needs many reforms on the economic front.
We need to revise our entire taxation net and bring it upto the modern standards.
We also need to bring many other small economic reforms regarding labor and commercial laws.

We're so outdated on the law front....

 

[CrazyZ]

In the west most employers are large corporations that have to report employee income. Plus they're are cashless society (credit cards, online finance, phone payments). The government has excellent visibility of its citizens finances. Tax evasion is difficult.

From what Iv'e seen, Pakistan is an all cash society with a large percentage of self employed citizens. Its almost impossible to tax income with those conditions. Tax non critical imports. Its easier and will improve CAD. I would also consider government owned for profit real estate developments. It would need a lot of over site to prevent corruption but in densely populated urban areas, it could generate a lot of revenue. A rentier tax. A water tax as well on agriculture, no one will conserve water if its free.

 

[Zhukov]

Trust all these "How we can improve This and that" and "Suggestive Reforms" Discussion sare totally futile and meaningless for Pakistan.
The only thing really WRONG is the National Attitude of "NOT working hard and focusing on your own Job and feeling proud to evade Standard operating Procedures". Do whatever legislation you want. make a perfect Tax Collection and regulation body. But it will be run by same incompetent, Corrupt non-professional people.
The PEOPLE is the problem not the Institute.

Look around you. Everyone is spending his life making good "Contacts" and "Networks". Infact Contacts and Networks or we say it in our Desi language "Taaluq Waasta" is the only merit to get more progress.

Regulatory Bodies, Research Institutes, Law and Order Authorities, Private Sector. Keep REGULATING them all.

A National Movement for Ethics is what we need on an emergency level nothing else

 

[The Accountant]

On the top of my head

1.) Total overhaul of UI of website, made easy to file taxes. Website available in Urdu by default and English optional.

2.) Proper tutorial given by video in both app and website on how to file taxes and what each term means.

3.) More and even better incentives given to tax fillers.

4.) Small offices around each city where tax fillers will file tax for you.

We need FBR to be improved because it is one of the major things that will improve our economy. For those who don't know, it was recorded in 2013 that only 0.57% Pakistanis are filling taxes which is a complete joke and shows incompetency of FBR.

FBR needs to restructure ... Audit and enforcement needs to be separated .. Special focus to be made on investigation of non-filer citizens

 

[PurpleButcher]

1) BAN 1000 & 5000 denomination currency notes.
2) Re issue Rs. 500 notes.
3) Daily limit on cash transactions (2000-5000) per person, make it a heavily fined offence.
4) Mandatory bank accounts to be affiliated with smart id cards which could be used with atm machines.
5) All govt. fee to be paid online (utility bills, driving license fee, passport, etc etc)
6) Upper limit on cash that can be held in lockers ( something like 1 lac).
7) Bi annual tax returns compulsory per citizen.
8) Tax should be returned online, nadra, small fbr offices/ fbr approved agents with Rs.1000-2000 fixed fee countrywide
9) Right to vote and travel abroad should be directly linked with your tax paid status.
10) Whistleblowers should be rewarded 50% of the wealth of the fraudulent person. Every tax evader would be wary of the cashiers imagine malik riaz's security guard informing fbr of malik sahb travelling with cash more than 1 lac and getting filthy rich.
11) Mandatory debit card payment facility to be provided by all shop owners.

If i had time I would discuss more

 

[TheNoob]

1) BAN 1000 & 5000 denomination currency notes.
2) Re issue Rs. 500 notes.
3) Daily limit on cash transactions (2000-5000) per person, make it a heavily fined offence.
4) Mandatory bank accounts to be affiliated with smart id cards which could be used with atm machines.
5) All govt. fee to be paid online (utility bills, driving license fee, passport, etc etc)
6) Upper limit on cash that can be held in lockers ( something like 1 lac).
7) Bi annual tax returns compulsory per citizen.
8) Tax should be returned online, nadra, small fbr offices/ fbr approved agents with Rs.1000-2000 fixed fee countrywide
9) Right to vote and travel abroad should be directly linked with your tax paid status.
10) Whistleblowers should be rewarded 50% of the wealth of the fraudulent person. Every tax evader would be wary of the cashiers imagine malik riaz's security guard informing fbr of malik sahb travelling with cash more than 1 lac and getting filthy rich.
11) Mandatory debit card payment facility to be provided by all shop owners.

If i had time I would discuss more

How to destory your countries economy in 11 steps.

 

[Samlee]

On the top of my head

1.) Total overhaul of UI of website, made easy to file taxes. Website available in Urdu by default and English optional.

2.) Proper tutorial given by video in both app and website on how to file taxes and what each term means.

3.) More and even better incentives given to tax fillers.

4.) Small offices around each city where tax fillers will file tax for you.

We need FBR to be improved because it is one of the major things that will improve our economy. For those who don't know, it was recorded in 2013 that only 0.57% Pakistanis are filling taxes which is a complete joke and shows incompetency of FBR.

1.Massive Anti Corruption Crackdown.Any Tax Reform Without Removing These Rotten Eggs Will Be Futile

2.Automation and Computerization Of The Tax Collection Process

3.Create A National Database With The Help Of NADRA.NADRA Already Did It In 2012 and Was Able To Identify 3 to 4 Million Potential Tax Evaders.If You Add Corporate and Foreign Databases(e.g Panama Papers) You May Get Upto 10 Million Potential Tax Payers

4.Make Laws That Allow For Documentation e.g Anyone Who Wishes To Build A House His Plan Will Only Be Given Provisional Approval Full and Final Approval Will Only Be Given Upon Furnishing Receipts Of Expenditures and Purchases Made For The Construction of The House.Same Can Be Done In Case Of Nikkah Nama and Death Certificate.Also Chequebooks Should Only Be Delivered To Registered Address By Post

5.Massive and Brutal Crackdown Against Hundi and Hawala.Through Intelligence Sharing With Gulf Countries Networks Will Be Broken.

6.Outsource Certain Functions of FBR To Private Sector For Increased Efficiency

7.Computerization Of Land Records

8.Valuation of Land Records Will Be Done By SBP Surveyors.Valuation Of Plots Should Be Easy When You Have Sites Like OLX, Zameen.com and Lamudi etc.Why Go For DC Rates When You Can Easily Get Fair Market Value Online

 

[Bouncer]

On the top of my head

1.) Total overhaul of UI of website, made easy to file taxes. Website available in Urdu by default and English optional.

2.) Proper tutorial given by video in both app and website on how to file taxes and what each term means.

3.) More and even better incentives given to tax fillers.

4.) Small offices around each city where tax fillers will file tax for you.

We need FBR to be improved because it is one of the major things that will improve our economy. For those who don't know, it was recorded in 2013 that only 0.57% Pakistanis are filling taxes which is a complete joke and shows incompetency of FBR.

Do what rest of the world is doing: use technology. Make cash transactions greater than 1 lac illegal. Implement smart contracts for all property/vehicle/business transactions greater than 1 lac. When these transactions go through banks, they report it to FBR's systems.

Invest in this system and go through teething issues today and we will set for rest of the life. I understand there might some issues with inflation and cash circulation in the beginning but the problems it will address are far bigger. Further I also understand that this will never happen owing to the influence of big traders who enjoy a tax free life in Pakistan.

 

[AZADPAKISTAN2009]

The Problem:

• People are expected to File , and People don't like to File , They had Paperwork they hate the hassle.
• A person will always justify himself has poor and feel it is not necessary for him to Pay Taxes

Solution:

SALES TAX (Large to Mid Size organizations) :
Collect Tax , as a Sales Tax 35% Sales tax so every time a person buys/sell , they pay a Tax (extra funds) for purchase. The Business owner collecting the sales money then is 100% liable to be charged this Tax . They must report it with government as soon as possible and deposit funds into Government account or else his business can be charged or shut down.


Ask Banks to Provide cheap Checking Accounts

• All Businesses with Address MUST have a Bank account
• Business owners must use a Electronic Machine to take funds from ATM bank card

Permit System (1-2 People Business shops small) :
For shops which are really small , charge a 1,000 rupee per month business permit charge to owner of small shop, this is not based on the income of store but charge for opening business.

Pakistan had hidden economy , it just need to be tapped correctly

If we properly Regulate the Tanker Mafia , business it is taking away 8.7 billion Dollar yearly from Pakistani cities , theft in broad day light

The Math is all there the figures of 6,000 rupee per tanker , and 50,000 trips is from Karachi picked up from a documentary

In Black market there is demand for Truck supplying water up to 10,000 Rupees

FACT:
6,000 Rupee 1 Tanker cost x 50,000 Trips in Day x 365 days = 109 Billion Rupee
Divided by 125 to convert it to Dollar = 8.7 Billion Dollars

This money does not goes to fix the broken pipeline in Karachi
This money does not goes into Dam fund
This money does not gives tax break to Karachi residents
This money just goes into some Mafia's bank account who give permission for tankers to run



Instead of Going to Saudia or UAE for 2-3 Billion Dollar , Tackle the Water Mafia in Karachi and make sure the money people pay to water companies for tanker goes into Dam fund first and Truck association get money from Government of Pakistan



Simple Process should be

• Residents Request Water Tanker Online
• Money is paid Online
• Money goes to Dam fund
• Pakistan water board sends a truck of water to person who requested the water
• The Truck Driver is paid a reasonable wage per trip
• 5,500 Rupee goes into Dam fund and may be 500 rupee goes to truck driver

This theft is happening since 1999

 

[ziaulislam]

Long term
1. Primary education so people know how to pay taxes
2. Easy taxation via app/online
3. Cashless society via a third local payment system (not expensive visa/master)
4. Third party audit of all FBR employees for their properties
5. Strict punishment for tax evation

 

[AZADPAKISTAN2009]

Permit System works because , all the Bills are sent to Owner of home

a) Utility Bill tied to Physical Home , Apartment or Villa 15% Taxation

b) TV Tax (Like one in Japan , every Home should pay it to help PTV) , 100 Ruppee per home

c) Every Car / Motor Bike , running on Street must have a "PASS" , 100 Rupee per Month Pass Sticker
If police stops you they can check your sticker and give you ticket or fine if your ticket is invalid

d) Regional Tax Inspector , with Police can make runs in Neighborhood , to check if all open shops have valid business Permit (is every one paying 1,000 Rupee per month). Violator shops are closed , and Police puts a lock on business premises

Tax Inspector Must make report how many % businesses have permits in neighborhood
Many Tax Inspectors collectively make reports on whole city this way government
know which areas are doing well , and where is issue for tax theft

e) Cell phone charge Tax can be done by Utility companies , and money can be deposited into Pakistan FBR account


f) Water Mafia can be stopped if Money is collected digitally for tracking , and 95% fees go to Dam fund , rest is released for payment to truck driver for his wages. Military/Police can enforce this process (8.7 Billion Dollar at stake)




Example:
2018 Ahmed paid 0 rupee taxes he was suppose to file taxes, and pay 15% after filing , Ahmed hates filling forms and red tape

2019 Government Runs reforms
Lets Imagine how much Tax a person, named Ahmed will pay under this plan. This is a person who owns a home , orders water tanker for his home , runs a family business for selling kababs , and has 1 cell phone for talking to customers. And owns a Honda car


Ahmed's Home Utility Bill : Tax Paid 500 Rupee/Month
Ahmed's Business Utility Bill : Tax Paid 500 Rupee/Month
TV Tax per home for Ahmed : Tax Due 100 Rupee/Month
Ahmed's Business Permit : Tax Due 1,000 Rupee /Month
Ahmed ordered 1 Tanker a month : Fees Paid 6,000 Rupees / Fill
Ahmed's cell phone Recharge Tax : 1,000 Rupee per month
Ahmed Road Permit for Auto/Motor: 100 Rupee per month
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Money collected Silently from Ahmed : 9,200 Rupees/Month
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Using this simple Approach 1 Home / 1 Business was made 100% complainant for Taxes
very simple process


Tax Collected 2018 : 0 Rupee in 12 month
Tax Collected in 2019 from Ahmed : 9,200 x 12 = 1 Lakh Rupees



How many People in Pakistan who own a shop and home ?
Plenty

Assume , we have 1 Million Registered businesses and the owners for these also lives in home/ appartment

1,000,000 x 9,2000 x 12 = 110 Billion Ruppee ~ Close to 1 Billion Dollar



Just how many businesses we have 1 Million ? 10 Million , 100 Milllion?
Only Pakistan's Commerce Authority can tell us exact number of shops in Pakistan

 

[CrazyZ]

I've been thinking about how to implement a water tax to fund dams. It should be broken up into two portions, one levied on farms, one levied on people. The portion leveled on people could be a flat amount amount lets say 100 pkr per household (can vary based on the neighborhood). The farm portion would be the larger amount, a flat amount per kanal. The farm uses flood irrigation they pay more per kanal, if they use drip irrigation or efficient sprinklers then they pay less per kanal.

The money would go fund Hydro power dams, subsidize water efficiency initiatives, canals/water storage, waste water recycling, and desalination.

 

[ajpirzada]

the solution lies in simplification of tax laws.... this is the only way to make it easier for the tax collector to collect the right amount and also for senior officials to monitor the whole process... let me explain why

Imagine that you are a tax collector. You go to a shop and want to collect the tax they owe. You look at shop's income and tell them to pay an X amount. But the shopkeeper tells you that the correct amount is much lower. Why? Because the shop sells different products which have different tax rates. Perhaps the shopkeeper is lying and using this to understate the tax they owe. But it is almost impossible for you to calculate the exact amount. You either give up and agree to accept whatever the shopkeeper is willing to pay. Or, you bully the shopkeeper into paying whatever you are demanding. Or, you take your own cut from the shopkeeper as you know that no one can possibly come back and check if you collected the right amount.

You then go to a business. You make a similar demand. But the business tells you that they earn their income from multiple sources each of which has different tax rates. They show you some documents. Perhaps the business is lying. But it requires a lot of effort to verify if they are telling the truth or not. You again face three options: i) accept; ii) take bribe and let it be; and, iii) bully.

The whole system is marred by similar problems...

Can there be a bigger problem than this?