How to revolutionize Pakistan's Tax System?

[qamar1990]

Pakistan has a grand population of 220-250 Million People and it is well known perhaps only 1 Million people pay taxes so clearly there is a process which is broken

When FBR starts closing Bank accounts , people normally withdraw their funds from Bank Accounts and saving funds in alternative areas.

Long Story Short the classical Method of Tax collection is not working.


What Are Alternative Tax Models which might work for PAKISTAN?

STEP 0 : CAPITAL PUNISHMENT OF DEATH FOR TAKING BRIBE WHILE WORKING IN GOVERNMENT CONTRACT DEPARTMENT i.e Depanding bribe or Cut for Projects

STEP 1: NO NEED TO FILE INCOME TAX


"Yes you don't have to now spend time to file anything"

"NO INCOME TAX, YOU ARE TAX FREE "​

No Tax on Medicine or Doctors service

"Income Tax only due if your Yearly income is more then 80 Lakh Pakistan Rupee per year, then you should quietly pay 10% income tax or in other words if you make more then 80,000 USD per year"


STEP 2 : THE TAX WILL BE INTEGRATED INTO DAILY STUFF
a) 25% Tax on Eatable Goods at (National Distribution Center Level)
b) 35 % Tax on Automobile Sale (Imposed at Car Dealership Level /at Port of Entry)
c) 35 % Tax on Motor Bikes (Imposed at Car Dealership Level or at Port of Entry)
d) 30% Sales Tax on Gas Product Purchase

• Creation of Number Plate Renewal Licence yearly for all Cars
• Driver Tests Licencing Courses

e) 35% Tax on Mobile Phone Service (Collected Corporate Level)
f) 35% Tax on Electricity (Collected Corporate Level)
g) 35% Tax no Water Bill (Collected Corporate Level)
h) 35% Tax on Shadi Halls (Collected Corporate Level)
I) 15 % Tax on Property Sale / Exchange of Ownership
j) 45% Tax on FRENCHISE TAX (McDonalds, Pizza Hut, KFC) (Collected Corporate Level)
K) 30% Travel Tax by Airplane / 30 % Train Ticket / 30% Bus (Collected Corporate Level)
L) 30% Tax on Textiles imported from Outside Pakistan
M) 30% Tax on Perishable goods like (Fruit, Vegetable , Wheat)(National Distribution Center Level)


N) FIXED FARM LAND TAX BASED ON ACRES OF LAND OWNED
Simple Tax Format
Farm Land:

• 0-1 Acre Land :Rupee 800 due permonth in property tax
• 1-5,000 Acre Land: Rupee 10,000 due per month in property tax
• 10,000 Acres or more: Rupee 100,000 due per month in property tax

Living Land:

• Poeple who live in Appartments must pay 250 rupee per month Tax
  People who live in Homes must pay 350 rupee per month for property tax

0) 30% Tax on Electronics sale (National Distribution Center Level)

p) Qurbani Baqra sale tax 1,500 rupee per animal registered for sale for qurbani , animal is given permit for qurbani sale

Tax must be collected by state of Pakistan , for making this Halal Sale possible

P) OPEN SHOP TAX FIXED TAX 750 RUPEE / MONTH NEED PERMIT TO OPEN TRADE SHOP fine for not having permit 100,000 Rupees (1 Lakh Rupee)

• Small Shop Keepers who sell eatable goods don't need to pay extra Tax as they already bought their goods as National Distribution Centers , Tax collection already is done at Distribution Level

• Small fruit shop owners who buy from Distribution center need not pay any tax the Tax was already paid at Distribution Cenetr Level

Q) Transport Truck/ BUS / TAXI / RICKSHAW TAX , 500 Rupee per month for permit REGISTRATI0N fine for not having permit 100,000 Rupees (1 Lakh Rupee)

R) Corporate Tax on IT , Sugar Mills , Steels Mills, Petrol Company , Fertilizer company , food company , Manufacturing segment, Banks stays as is where corporate Taxes are collected

S) AIRPORT TAX : Visitors Landing in Pakistan (Airports) must pay 1000 Rupee Tax , the funds collected with help security at airports







ZAKAT CHARITY
(Not mandatory Up to you if you wana go to heaven)

(Donation Limit 500 Rupees to ?????)

• Deposit Funds to Government of Pakistan's Bank Account for Zakat National FUND

• Government will then distribute Charity for registered Centers/Mosques

• Government Sponsored Wellness programs to fight poverty

Oh ..

• Forgot if you are sending funds from Middle East , Europe , North America to Pakistan 0% Tax on that fund provided the fund is between 0-3,000 USD

• Anything over 3,000 , 1.5% tax would be applied

This is it ...

• NO RESTRICTION TO MOVE MILLIONS INTO PAKISTAN FOR BUSINESS OR OUT only restriction is you need to show you are legal Business in Pakistan.

The tax on farmland is per acre or the total amount?? If it’s per acre how on earth you expect people to pay 100,000 per acre??

Pakistan has a grand population of 220-250 Million People and it is well known perhaps only 1 Million people pay taxes so clearly there is a process which is broken

When FBR starts closing Bank accounts , people normally withdraw their funds from Bank Accounts and saving funds in alternative areas.

Long Story Short the classical Method of Tax collection is not working.


What Are Alternative Tax Models which might work for PAKISTAN?

STEP 0 : CAPITAL PUNISHMENT OF DEATH FOR TAKING BRIBE WHILE WORKING IN GOVERNMENT CONTRACT DEPARTMENT i.e Depanding bribe or Cut for Projects

STEP 1: NO NEED TO FILE INCOME TAX


"Yes you don't have to now spend time to file anything"

"NO INCOME TAX, YOU ARE TAX FREE "​

No Tax on Medicine or Doctors service

"Income Tax only due if your Yearly income is more then 80 Lakh Pakistan Rupee per year, then you should quietly pay 10% income tax or in other words if you make more then 80,000 USD per year"


STEP 2 : THE TAX WILL BE INTEGRATED INTO DAILY STUFF
a) 25% Tax on Eatable Goods at (National Distribution Center Level)
b) 35 % Tax on Automobile Sale (Imposed at Car Dealership Level /at Port of Entry)
c) 35 % Tax on Motor Bikes (Imposed at Car Dealership Level or at Port of Entry)
d) 30% Sales Tax on Gas Product Purchase

• Creation of Number Plate Renewal Licence yearly for all Cars
• Driver Tests Licencing Courses

e) 35% Tax on Mobile Phone Service (Collected Corporate Level)
f) 35% Tax on Electricity (Collected Corporate Level)
g) 35% Tax no Water Bill (Collected Corporate Level)
h) 35% Tax on Shadi Halls (Collected Corporate Level)
I) 15 % Tax on Property Sale / Exchange of Ownership
j) 45% Tax on FRENCHISE TAX (McDonalds, Pizza Hut, KFC) (Collected Corporate Level)
K) 30% Travel Tax by Airplane / 30 % Train Ticket / 30% Bus (Collected Corporate Level)
L) 30% Tax on Textiles imported from Outside Pakistan
M) 30% Tax on Perishable goods like (Fruit, Vegetable , Wheat)(National Distribution Center Level)


N) FIXED FARM LAND TAX BASED ON ACRES OF LAND OWNED
Simple Tax Format
Farm Land:

• 0-1 Acre Land :Rupee 800 due permonth in property tax
• 1-5,000 Acre Land: Rupee 10,000 due per month in property tax
• 10,000 Acres or more: Rupee 100,000 due per month in property tax

Living Land:

• Poeple who live in Appartments must pay 250 rupee per month Tax
  People who live in Homes must pay 350 rupee per month for property tax

0) 30% Tax on Electronics sale (National Distribution Center Level)

p) Qurbani Baqra sale tax 1,500 rupee per animal registered for sale for qurbani , animal is given permit for qurbani sale

Tax must be collected by state of Pakistan , for making this Halal Sale possible

P) OPEN SHOP TAX FIXED TAX 750 RUPEE / MONTH NEED PERMIT TO OPEN TRADE SHOP fine for not having permit 100,000 Rupees (1 Lakh Rupee)

• Small Shop Keepers who sell eatable goods don't need to pay extra Tax as they already bought their goods as National Distribution Centers , Tax collection already is done at Distribution Level

• Small fruit shop owners who buy from Distribution center need not pay any tax the Tax was already paid at Distribution Cenetr Level

Q) Transport Truck/ BUS / TAXI / RICKSHAW TAX , 500 Rupee per month for permit REGISTRATI0N fine for not having permit 100,000 Rupees (1 Lakh Rupee)

R) Corporate Tax on IT , Sugar Mills , Steels Mills, Petrol Company , Fertilizer company , food company , Manufacturing segment, Banks stays as is where corporate Taxes are collected

S) AIRPORT TAX : Visitors Landing in Pakistan (Airports) must pay 1000 Rupee Tax , the funds collected with help security at airports







ZAKAT CHARITY
(Not mandatory Up to you if you wana go to heaven)

(Donation Limit 500 Rupees to ?????)

• Deposit Funds to Government of Pakistan's Bank Account for Zakat National FUND

• Government will then distribute Charity for registered Centers/Mosques

• Government Sponsored Wellness programs to fight poverty

Oh ..

• Forgot if you are sending funds from Middle East , Europe , North America to Pakistan 0% Tax on that fund provided the fund is between 0-3,000 USD

• Anything over 3,000 , 1.5% tax would be applied

This is it ...

• NO RESTRICTION TO MOVE MILLIONS INTO PAKISTAN FOR BUSINESS OR OUT only restriction is you need to show you are legal Business in Pakistan.

I send money from the USA to family as well and ignore I have to pay 1.5 tax on that why should I send anything?? Why not just do hondi??

Implement direct taxes.... this BS of indirect taxes hardly works. Most countries that have a flourishing tax system implement direct taxation.

Tax strategy:

1. If you are older than 18 years old, it is mandatory that you have a bank account.
2. Illegal to pay wages in cash. Wages will only be paid in direct bank transfer or by cheque.
3. All small/medium/large retail businesses to register with FBR and have their bank accounts linked with their registered tax numbers. FBR should know how much a business earned in a given year.
4. Remove tax exemptions for all ladlay sections of society. The amount of tax you pay will only be calculated based on your income and no other criteria.


Tax scheme:

1. Monthly income less than Rs. 100,000, zero income tax
2. Monthly income between Rs. 100,001-200,000, 15% income tax
3. Monthly income between Rs. 200,001-500,000, 30% income tax
4. Monthly income greater than Rs. 500,001, 50% income tax



Implement this then you will be able to reduce the thousands of indirect taxes that only hurt the lower income groups.

So if I make 550,000 per month I would have to pay 275,000 in tax?? Why? R u ok in the head?? If I had to do this I would never live in Pakistan or even spend a penny here.

1-They should simple do a property tax to cover cost of roads and schools.
Property tax based on the value of the property unless it’s a farming land, in that case just charge 5,000 rupee per acre per year..
2- give put a ban on importing vehicles unless it’s military vehicles or special equipment like cranes etc.. force these companies to manufacture what they sell in our country to create jobs here.
3- Tax all sugary drinks and snacks and Use that money for hospitals..
5- tax every persons income that is on the books
20 percent if you make over 100,000 per month
15 present if you make less then 100,000
Use that money to give people.
Any luxury good that gets imported gets 35 percent tax...and just normal vat tax for luxury good manufactured in Pakistan...

Basically we don’t just need to fix the tax system but also force companies that sell items here to manufacture here or they will be taxed heavy.

 

[Mumm-Ra]

For that which a community is inadequate in providing, a govt exists to provide security (foreign and domestic), courts (law and standards) and overall larger administration + mass use infra (and even the latter is somewhat debatable).

It should only focus on those aspects and I suppose can extract only from means of production/larger enterprise to finance itself at some rate....and only spend what it can collect this way. All of these sectors are ones where each citizen essentially puts in what he can also benefit from equally ....the problem always starts when govt acts as a conduit to forcibly transfer from perceived haves to have nots, for some optic of its version of "social good" in return for captive votes, political propaganda etc....and ends up messing up badly in the long run the actual function, role and permeation of the free-market.

IMO, governments duties towards its citizens evolve over time as the country's economy and resources progress. In the initial stage the government does not have the funds or capacity to look after all of its citizens and hence we see free market economy at play. At that time the focus of the government towards its citizens is to just provide with basic necessities. With time the gov. (democratic or authoritarian) will divert funds on its less unfortunate citizens to stay in power. We see that in today's world as a lot of folks in the west are obsessed with income inequality, healthcare etc. They are not totally wrong as their governments can afford to ensure that their citizens get these facilities. But, to expect a country on the level of Pakistan or India to do the same would be counter productive.

 

[The Accountant]

Pakistan has a grand population of 220-250 Million People and it is well known perhaps only 1 Million people pay taxes so clearly there is a process which is broken

When FBR starts closing Bank accounts , people normally withdraw their funds from Bank Accounts and saving funds in alternative areas.

Long Story Short the classical Method of Tax collection is not working.


What Are Alternative Tax Models which might work for PAKISTAN?

STEP 0 : CAPITAL PUNISHMENT OF DEATH FOR TAKING BRIBE WHILE WORKING IN GOVERNMENT CONTRACT DEPARTMENT i.e Depanding bribe or Cut for Projects

STEP 1: NO NEED TO FILE INCOME TAX


"Yes you don't have to now spend time to file anything"

"NO INCOME TAX, YOU ARE TAX FREE "​

No Tax on Medicine or Doctors service

"Income Tax only due if your Yearly income is more then 80 Lakh Pakistan Rupee per year, then you should quietly pay 10% income tax or in other words if you make more then 80,000 USD per year"


STEP 2 : THE TAX WILL BE INTEGRATED INTO DAILY STUFF
a) 25% Tax on Eatable Goods at (National Distribution Center Level)
b) 35 % Tax on Automobile Sale (Imposed at Car Dealership Level /at Port of Entry)
c) 35 % Tax on Motor Bikes (Imposed at Car Dealership Level or at Port of Entry)
d) 30% Sales Tax on Gas Product Purchase

• Creation of Number Plate Renewal Licence yearly for all Cars
• Driver Tests Licencing Courses

e) 35% Tax on Mobile Phone Service (Collected Corporate Level)
f) 35% Tax on Electricity (Collected Corporate Level)
g) 35% Tax no Water Bill (Collected Corporate Level)
h) 35% Tax on Shadi Halls (Collected Corporate Level)
I) 15 % Tax on Property Sale / Exchange of Ownership
j) 45% Tax on FRENCHISE TAX (McDonalds, Pizza Hut, KFC) (Collected Corporate Level)
K) 30% Travel Tax by Airplane / 30 % Train Ticket / 30% Bus (Collected Corporate Level)
L) 30% Tax on Textiles imported from Outside Pakistan
M) 30% Tax on Perishable goods like (Fruit, Vegetable , Wheat)(National Distribution Center Level)


N) FIXED FARM LAND TAX BASED ON ACRES OF LAND OWNED
Simple Tax Format
Farm Land:

• 0-1 Acre Land :Rupee 800 due permonth in property tax
• 1-5,000 Acre Land: Rupee 10,000 due per month in property tax
• 10,000 Acres or more: Rupee 100,000 due per month in property tax

Living Land:

• Poeple who live in Appartments must pay 250 rupee per month Tax
  People who live in Homes must pay 350 rupee per month for property tax

0) 30% Tax on Electronics sale (National Distribution Center Level)

p) Qurbani Baqra sale tax 1,500 rupee per animal registered for sale for qurbani , animal is given permit for qurbani sale

Tax must be collected by state of Pakistan , for making this Halal Sale possible

P) OPEN SHOP TAX FIXED TAX 750 RUPEE / MONTH NEED PERMIT TO OPEN TRADE SHOP fine for not having permit 100,000 Rupees (1 Lakh Rupee)

• Small Shop Keepers who sell eatable goods don't need to pay extra Tax as they already bought their goods as National Distribution Centers , Tax collection already is done at Distribution Level

• Small fruit shop owners who buy from Distribution center need not pay any tax the Tax was already paid at Distribution Cenetr Level

Q) Transport Truck/ BUS / TAXI / RICKSHAW TAX , 500 Rupee per month for permit REGISTRATI0N fine for not having permit 100,000 Rupees (1 Lakh Rupee)

R) Corporate Tax on IT , Sugar Mills , Steels Mills, Petrol Company , Fertilizer company , food company , Manufacturing segment, Banks stays as is where corporate Taxes are collected

S) AIRPORT TAX : Visitors Landing in Pakistan (Airports) must pay 1000 Rupee Tax , the funds collected with help security at airports







ZAKAT CHARITY
(Not mandatory Up to you if you wana go to heaven)

(Donation Limit 500 Rupees to ?????)

• Deposit Funds to Government of Pakistan's Bank Account for Zakat National FUND

• Government will then distribute Charity for registered Centers/Mosques

• Government Sponsored Wellness programs to fight poverty

Oh ..

• Forgot if you are sending funds from Middle East , Europe , North America to Pakistan 0% Tax on that fund provided the fund is between 0-3,000 USD

• Anything over 3,000 , 1.5% tax would be applied

This is it ...

• NO RESTRICTION TO MOVE MILLIONS INTO PAKISTAN FOR BUSINESS OR OUT only restriction is you need to show you are legal Business in Pakistan.

Pardon for my words but this is a pathetic suggestion and counter growth and against all principle of economy and finance ...

You never tax consumptions and Pakistan is already paying the price of high sales tax and withholding income tax as a result those who want to pay taxes and are compliant are becoming expensive and non-compitents and whereas those who are doing it illegally are making more and more money ...

 

[Darth Vader]

Indirect tax system is flawed
Problem is lower income class have no idea about tax system
Pakistan need digital revolution in this sector ,
getting a bank account should be easy
,making online tranafer easy , fast , secure
than make sure employers pay by banks ,
everything goes through banks ,it will improve the economy and will build credit rating so people can get loans and invest with it

Few changes need lower indirect taxes on item
Which will lower the price and will increase peoples purchase power
And need to set a minimum wage so that will help in creating a limit a benchmark
Need to set tax free income e.g 5000 just have to pay rs 5 or 50 to make sure you are in the system and it wont affect the lower income people
2 people with around 20000 they pay 200 to 500
3 people with 50000 to 100000 is 1000

Set pensions for everyone whos is old so you have incentive from gov for people so they pay taxes even if they are paying minimum
Start tax from minimum till people started using and get used to it and than let it grow

 

[The Accountant]

First of all you have close the avenues which are being used to convert black money into white money... THose areas are :

1. Poperty . tax is fixed despite of the profits made and hence one of the biggest source of tax fraud
2. Gov. bonds. ... already won government bonds are big source of corruption ... People purchase these already won bond from open market through their illegal income and then claim the same income from government as legal money ...
3. Exempt property from abroad ... all the income earned from abroad is tax free their is a reason our remittances are icnreases . Our people hundi their income outside Pakistan and then claim them back through official channel as income from abroad without any tax.
4. Hundi due to above reasons
5. Salaries in cash ... Below 15K salary can be paid in cash is one of the biggest source of overstating tax expenses and making payments in cash to illegal suppliers...
6. Full and final settlement on withholding at source by following:
   - Commercial importer
   - Individual and partnership company
   - Brokers
   - And other such businesses
   
7. Agriculture business is another big source of tax evasion as mostly it isbeing done in cash

 

[Imran Khan]

first step desolve FBR make new agency for this job. trained them from france

 

[Zibago]

I am curious, what is the level stipulated, is it to be enforced or simply recommended....and is there a threshold it is supposed to kick in at (or left open to personal free will/choice etc)?

I like having no authoritarian system of tax (Esp on individuals), but only community charity towards socio-economic causes using the institutions of long established order (be it religion etc).

For that which a community is inadequate in providing, a govt exists to provide security (foreign and domestic), courts (law and standards) and overall larger administration + mass use infra (and even the latter is somewhat debatable).

It should only focus on those aspects and I suppose can extract only from means of production/larger enterprise to finance itself at some rate....and only spend what it can collect this way. All of these sectors are ones where each citizen essentially puts in what he can also benefit from equally ....the problem always starts when govt acts as a conduit to forcibly transfer from perceived haves to have nots, for some optic of its version of "social good" in return for captive votes, political propaganda etc....and ends up messing up badly in the long run the actual function, role and permeation of the free-market.

Would like to hear everyone thoughts on this.

@Joe Shearer @Desert Fox @Zibago @django @Chak Bamu

Until we decide to move away from the anti poor indirect taxation mosel to a more targeted direct taxation model we will continue to have tax issues and the problem just doesnot ends right here certain sectors are given exemptions just because they pay the top dogs to do that

 

[Jaanbaz]

Tell all the fat politicians, army generals and top bureaucrats to start paying taxes. Once the top dogs are given a good kick in the rest of the sheep will follow, maybe after Pakistan sorts its tax system out we could actually implement a state funded universal health system.

 

[Viking 63]

You need outside help and systems to start with, then close FBR and fire all blood suckers, train new people and perhaps appoint foreign tax specialist for initial few years.

 

[Mitho1980]

2 words agricultural tax.

 

[AZADPAKISTAN2009]

Few folks raise interesting point

Point #1 : Property Tax

Question : How can anyone pay 100,000 fixed amount per month ?
Answer: Well right now the collection is ZERO what is better Zero or 1 Lakh per month colected from anyone who owns 10,000 Acres. If you cannot pay property Tax then you can sell the land back to Government

• Most farmers have 1 Acre or less , and collecting mere 800 rupees is penut but "something"

What I stated earlier page
=====================================================
Simple Tax Format
Farm Land:

• 0-1 Acre Land : Fixed Rupee 800 due permonth in property tax
• 1-5,000 Acre Land: Fixed Rupee 10,000 due per month in property tax
• 10,000 Acres or more: Fixed Rupee 100,000 due per month in property tax

Living Land:

• Poeple who live in Appartments must pay 250 rupee per month Tax
  People who live in Homes must pay 350 rupee per month for property tax

Who ever owns the Home / Appartment ~ Has to pay this minute tiny amount



Example:
Assume we have 45 Million homes in Pakistan

• 45,000,000 x 350(Rupee)= 15.7 Billion Pakistani Rupees collected per month

= 188 Billion in Year


Assume we have 10 Million appartment in Pakistan

• 10,000,000 x 250(Rupee) = 2.5 Billion Pakistani Rupees collected per month

= 30 Billion Rupee in Year

Assume we have 100,000 Farmers with 1 acre land

• 1,000,000 x 800(Rupee) = 800,000,000 Pakistani Rupees collected from 1 Acre farms

= 12 Billion Rupee per year

• Just from these 3 Entities 230 Billion Rupees Collected ~ $2.3 Billion USD in year

Example 2: Qurbani Tax
Animals Killed in year

KPK province 4.67 million Animals killed in Eid , so lets take this same example and apply
it 4 provinces f Pakistan

KPK 4.5 Million Animals
Sindh 5.0 Million Animals
Punjab 5.0 Million Animals
Baluchistan 4.5 Million Animals
FATA/Kashmir 4.5 Million Animals

25 Million Animals as example x Tax charged per Animal Killed 1,500 Rupee
Income generated = 37 Billion Pakistani Rupee ~ $400.00 Million USD


So easy to see just from two initiative Property Tax & Qurbani Tax = 3.0 Billion Dollar extra


SMALL SHOP TAX 800 Rupees per shop every month right now these shop pay $0
Small Shops in Pakistan

GOVERNMENT BHATTA TAX (30 DAY OPERATION TAX)​

• 50,000,000 Shops x 800 Rupees = 400 Billion Ruppees per month does not matter you made sale or not you HAVE SHOP OPEN you pay 800 rupee in 30 days to maintain your PERMIT

~ 4 Billion USD extra can be generated by simple 800 Rupee per month collection


NOT EVEN INCLUDING THE MONEY THAT WILL BE GENERATED BY SALES TAX

RICH / POOR ALL PAY SOME SALES TAX

• When you eat > Tax
• When you travel > Tax
• When you eat Sweets > Tax (You love those Gulab Jaman ?)
• When you buy luxury textiles > Tax
• When you eat Franchise food > Tax
• When you go Shadi > Tax
• When you drink > Tax
• Add gas to motor bike or car or bus > Tax
• Love those LCD electronics > Tax
• Love those Smartphone for Chat > Tax

• Could be between 5 Billion USD to 25 Billion USD , as 230 Million people buy stuff daily

a) 25% Tax on Eatable Goods at (National Distribution Center Level)
b) 35 % Tax on Automobile Sale (Imposed at Car Dealership Level /at Port of Entry)
c) 35 % Tax on Motor Bikes (Imposed at Car Dealership Level or at Port of Entry)
d) 30% Sales Tax on Gas Product Purchase

• Creation of Number Plate Renewal Licence yearly for all Cars
• Driver Tests Licencing Courses

e) 35% Tax on Mobile Phone Service (Collected Corporate Level)
f) 35% Tax on Electricity (Collected Corporate Level)
g) 35% Tax no Water Bill (Collected Corporate Level)
h) 35% Tax on Shadi Halls (Collected Corporate Level)
I) 15 % Tax on Property Sale / Exchange of Ownership
j) 45% Tax on FRENCHISE TAX (McDonalds, Pizza Hut, KFC) (Collected Corporate Level)
K) 30% Travel Tax by Airplane / 30 % Train Ticket / 30% Bus (Collected Corporate Level)
L) 30% Tax on Textiles imported from Outside Pakistan
M) 30% Tax on Perishable goods like (Fruit, Vegetable , Wheat)(National Distribution Center Level)


Note : Revenue from Sales Tax would be additional Income for Governent


Point #2 Oversea cash


Question : Why would I pay 1.5% Tax why not Hondi?
Answer:

• 99% of Pakistani send $100-3,000 USD to relatives and that is tax free TAX FREE provided it is Bank to Bank transfer

• If you are bringing in 10,000 USD-100,000 USD you pay 1.5% tax so it is considered legal you get receipt from Governent of Pakistan/Bank for legal transaction
  
• (1 day service)

Summary :

• Nationally doing Property Tax correctly = 2.3 Billion USD in 12 Month (Permit System)
• Qurbani Tax can generate = 0.4 Billion USD in 1 Month (Permit System)
• Small Shop Tax can generate = 4.0 Billion USD in 12 Month (Permit System)

• Sales Tax on Food/CellPhone/Water/Electricity/Clothes/Franchise/LCD/Petrol & Gas Food can generate 5 Billion to 25 Billion in 12 Months

• Easily Generating 12 Billion Anually from Civilian Sector (Worse case scenario)
• Generating 30 Billion Anually (Best case scenario)

• Collection from Zakat is extra which is distributed to Charity Organization by Government of Pakistan, not enforced by Government but funds collected in national Government account

TAX SHADI HALL Look at all the God Damn luxury in Pakistan
Tax PER HOUR RATE

 

[BATMAN]

There must be a double tax on people, who have no declared source of income but are living lavishly, driving around in Parados and frequently travelling to UK /UAE for holiday.

 

[AZADPAKISTAN2009]

Magic Formula For Pakistan

• Million of homes , appartments 250 Rupee ~ 350 Rupee per month Permit
• 3 Class Farm Land Tax

0-100 Acre Land ~ 800 Ruppes due per month
100-5000 Acres Land ~ 10,000 Rupees due per month
5-10,000 Acre Land ~ 100,000 Rupees due per month​

• Small shops (None of them pay anytax) 800 Rupee per shop per month Permit
  
• Qurbani Animals in Eid 1500 per animal in Eid Month
  
• Shadi Halls 1000 rupee collected per hour (8 hour max limit) per shadi hall
  
• Every day commodity (Food / Clothes / Electronics / Smartphones/Franchise Food/ Drinks/ Fuel/ Petrol / Gas) 25%-30% Sales Tax
  
• Buses / Taxis / Rickshaws all have to get 800 Rupee / Monthly operational Permits

All have to be brought into sphere of PERMITS and taxation
Corporate Tax : Keeep as is for Big companies (Corporations)
Import /Export : Keep existing system

Enough cash will be generated that we would not need to worry about Personal Income Tax
Yea you heard it Pakistan is Tax free land for Income Earned




https://en.wikipedia.org/wiki/Taxation_in_Pakistan
http://www.aboardthedemocracytrain.com/less-than-1-percent-of-pakistanis-pay-tax-survey

According to the International Development Committee, Pakistan had a lower-than-average tax take. Only 0.57% of Pakistanis, or 768,000 people out of a population of 190 million pay income tax.

 

[Nilgiri]

IMO, governments duties towards its citizens evolve over time as the country's economy and resources progress. In the initial stage the government does not have the funds or capacity to look after all of its citizens and hence we see free market economy at play. At that time the focus of the government towards its citizens is to just provide with basic necessities. With time the gov. (democratic or authoritarian) will divert funds on its less unfortunate citizens to stay in power. We see that in today's world as a lot of folks in the west are obsessed with income inequality, healthcare etc. They are not totally wrong as their governments can afford to ensure that their citizens get these facilities. But, to expect a country on the level of Pakistan or India to do the same would be counter productive.

The issue for me is always moral based. Is it morally ok to steal by govt force from someone productive to give to someone not productive?

When it is public good (infrastructure, security, courts etc), it is not stealing in first place given everyone has equal opportunity theoretically to access it and benefit from it at same rate.

When it is a general commodity however, it is stealing in my opinion, given even theoretically it cannot be accessed at same rate anymore, it is a pure transfer from one to the other by barrel of govt gun.

For the latter (morally), it should always be done by voluntary free will (charity) given thats what is most sustainable and does not afford slippery slope argument.

Even in pragmatic ground sense, the effects are not far from the moral quandary once you dig past the immediate govt propaganda (which of course is what you can expect from the one doing the immoral action and justifying it)....resource transfer from top of the pyramid to the base by govt force generally only creates immediate base liquidity for immediate consumption which does not change their development long term (which needs long term investment by them personally into things like education and permeation of morality and family etc). They stay as a captive vote and on the plantation of the govt identity politics. A win-win optic but a lose-lose reality.

Until we decide to move away from the anti poor indirect taxation mosel to a more targeted direct taxation model we will continue to have tax issues and the problem just doesnot ends right here certain sectors are given exemptions just because they pay the top dogs to do that

Hence why I suggest Pakistan (at least for now till it reached developed country status) focus only on govt = public good provision only. There will be minimum extraction needed, so need for the atrocious debt burden and extraction from all the easy base domestically which is hurting Pakistan....will not be there in first place.

 

[Mumm-Ra]

The issue for me is always moral based. Is it morally ok to steal by govt force from someone productive to give to someone not productive?

When it is public good (infrastructure, security, courts etc), it is not stealing in first place given everyone has equal opportunity theoretically to access it and benefit from it at same rate.

When it is a general commodity however, it is stealing in my opinion, given even theoretically it cannot be accessed at same rate anymore, it is a pure transfer from one to the other by barrel of govt gun.

For the latter (morally), it should always be done by voluntary free will (charity) given thats what is most sustainable and does not afford slippery slope argument.

Even in pragmatic ground sense, the effects are not far from the moral quandary once you dig past the immediate govt propaganda (which of course is what you can expect from the one doing the immoral action and justifying it)....resource transfer from top of the pyramid to the base by govt force generally only creates immediate base liquidity for immediate consumption which does not change their development long term (which needs long term investment by them personally into things like education and permeation of morality and family etc). They stay as a captive vote and on the plantation of the govt identity politics. A win-win optic but a lose-lose reality.



Hence why I suggest Pakistan (at least for now till it reached developed country status) focus only on govt = public good provision only. There will be minimum extraction needed, so need for the atrocious debt burden and extraction from all the easy base domestically which is hurting Pakistan....will not be there in first place.

But this is just one side of the picture. The top down approach does not necessarily work. The whole experiment of the Regan era was based on that principle. It did let to a new era of economic development but it also facilitated the accumulation of resources by a select few. The income gap increased substantially leading to movements like occupy Wallstreet. The income inequality is now one of the hottest topic in the globe. And we have seen what happens when the bottom ones feel kept out of the goodies. Some guy ends up writing a communist manifesto and the whole damn world is made to because for it.

But, instead of just feeding them, the government should impart skills to ensure that they become productive. And then ensure that they use these skills to find a stable work for themselves. Just handing out food stamps etc should be discouraged.

But, let's not derail this thread. I would be happy to open another one for this purpose if you want to discuss further.