Impose tax on agriculture, not RGST: Altaf

[DesiGuy]

BHIT SHAH: Addressing a gathering at Bhit Shah via telephone, Muttahida Qaumi Movement (MQM) chief Altaf Hussain said Sindh’s linguistic diversity was being exploited to create differences among the people of the province.

“The Sindhi and the Urdu speaking people are one nation,” Altaf Hussain said.

Hussain said the feudal system was damaging the country’s roots and that the Pakistani nation should stand up against it and get rid of it.

“Inflation has affected the people and we oppose the imposition of Reformed General Sales Tax (RGST). Instead, agricultural tax should be imposed on land owners,” Hussain added.

He further said that sending the chief of the Inter-Services Intelligence (ISI) to the US will mark the end of this government.

Impose tax on agriculture, not RGST: Altaf | Pakistan | DAWN.COM

 

[somebozo]

“The Sindhi and the Urdu speaking people are one nation,” Altaf Hussain said.

SHould really shut his foul mouth! and if he mard ka bacha then he should play politics in the country not from abroad holding a British passport..wonder why is he even allowed a say in the party or not yet classified as a traitor. SHould learn some masculinity from Benazir.

 

[ajpirzada]

what a hypocrite? he should be asked if he actually knows what RGST is?

RGST is actually reducing tax rate on all the good from 17-25% to 15%. only those good will be effected which are now being added to the tax list and they are mainly agricultural..... so what is his point? speaking for those who will find it hard to evade taxes after new procedures are introduced? Indeed

 

[AZADPAKISTAN2009]

what a hypocrite? he should be asked if he actually knows what RGST is?

RGST is actually reducing tax rate on all the good from 17-25% to 15%. only those good will be effected which are now being added to the tax list and they are mainly agricultural..... so what is his point? speaking for those who will find it hard to evade taxes after new procedures are introduced? Indeed

lol ... man I thought he finally said something useful MQM leader ji but in any case - I thought the RGST was all goods ... it will be a great burden to our already existing poor class

Rich ones just keep ammending all the rules in their favour I oppose the RGST ... we already have a taxation system but the tax collectors are not impowered with ability to confiscate properly (home, cars, assets)

Give them power to seize bank accounts/assets and you will see ppl paying taxes its simple with Pakistani Tax Evadors ...

"Latoon ki bhoot , bataon se naji mante "

 

[v9s]

RGST is actually reducing tax rate on all the good from 17-25% to 15%. only those good will be effected which are now being added to the tax list and they are mainly agricultural..... so what is his point? speaking for those who will find it hard to evade taxes after new procedures are introduced? Indeed

Please forgive me for my ignorance, but isn't that reduced tax rate being compounded over and over again in each step of the process to manufacture a good?

The new tax does have a wider reach than the old GST. When the RGST is imposed, everyone from the suppliers to the middleman in small and large businesses will be brought within the tax net.

Unlike the old GST, the RGST will not be imposed just on the final price of a product; rather, a certain amount of tax will be added at each stage of production.

For example if a supplier sells raw material worth Rs100 to a manufacturer, he would charge Rs115 instead of Rs100, and remit the extra Rs15 as tax.

After manufacturing the product, the manufacturer, for example, adds a profit of Rs2o. The product now costs Rs135, but instead of selling it to the retailer at Rs135, the manufacturer will add another 15 per cent to the value addition of Rs20 which will bring up the cost to Rs138. The extra Rs3 will be remitted as tax.

Finally, the retailer will add his profit. Assuming that is another Rs20, the price of the product is now up to Rs158 again. Instead of selling it at Rs158, the retailer will add yet another 15 per cent of the value addition and the final cost will be Rs161. The retailer will then pay the added tax back to the treasury.

http://blogs.tribune.com.pk/story/3163/what-you-need-to-know-about-rgst/

Oh and also:

agri income will not come under tax net
http://www.nation.com.pk/pakistan-n...-Agriculture-income-exempted-but-inputs-taxed

Don't get me wrong, i'm for the RGST. Too much tax evasion in our country. We should supplement the RGST with Agri income tax as well. Altaf bhai is wrong here.

 

[twoplustwoisfour]

Instead, agricultural tax should be imposed on land owners,” Hussain added.

I'm afraid the speaker has been misquoted in this case. He did not say that agriculture should be taxed. He said that the land owners should be taxed.

From the little I know about Pakistan's agricultural land ownership, this seems to be a good idea. Why exactly do people here think that imposing tax on land owners is not a good idea?

 

[naumananjum]

not only altaf hussain
but also many experts and opposition parties are saying the same
.
and also
where he says
"udu and sindhi are one nation"
he should also say
that whole pakistan is one nation

 

[pak-marine]

why would a agricultural land owner wont pay any tax ? is it cuz they are fuedal lords and no one has the gutts to raise their voices against , these fuedal guys are having a party

 

[ajpirzada]

Please forgive me for my ignorance, but isn't that reduced tax rate being compounded over and over again in each step of the process to manufacture a good?



Oh and also:



Don't get me wrong, i'm for the RGST. Too much tax evasion in our country. We should supplement the RGST with Agri income tax as well. Altaf bhai is wrong here.

what 'over and over again'

it doesnt matter if you charge if percent on the final price or 15% on the value added at each stage. they are both equal. i did the calculation in one of my earlier posts on RGST.

yes Agri tax should be there. but Agri tax not being there is not a valid reason for opposing RGST. RGST will only be effecting tax evaders and their supporters.

 

[ajpirzada]

lol ... man I thought he finally said something useful MQM leader ji but in any case - I thought the RGST was all goods ... it will be a great burden to our already existing poor class

Rich ones just keep ammending all the rules in their favour I oppose the RGST ... we already have a taxation system but the tax collectors are not impowered with ability to confiscate properly (home, cars, assets)

Give them power to seize bank accounts/assets and you will see ppl paying taxes its simple with Pakistani Tax Evadors ...

"Latoon ki bhoot , bataon se naji mante "

prove ur statement with numbers/fact.

How will RGST effect poor?

poor dont pay any income tax. 70% of their income is spent on food which is again not taxed. on remaining 30% of their income they pay indirect (GST) of 17-25%. This means that the total tax they pay is only (0.3*21=6.2%). and this will go do to (0.3*15=4.5%) once RGST is imposed and the indirect tax rate is reduced to 15%.

so poor are actually benefiting from RGST, contrary to what you are saying.

 

[v9s]

what 'over and over again'

it doesnt matter if you charge if percent on the final price or 15% on the value added at each stage. they are both equal. i did the calculation in one of my earlier posts on RGST.

yes Agri tax should be there. but Agri tax not being there is not a valid reason for opposing RGST. RGST will only be effecting tax evaders and their supporters.

I made a calculation error by applying the tax on the cost, not the value addition.

Hmm...the prices will remain the same i guess.

I'm not opposing the RGST, i want agri income to come under the tax bracket too.