Nawaz Sharif: Promoting Tax Evaders, Punishing the Honest Ones!

[Panther 57]

Can you elaborate on this one? Btw most of the private manufacturing payrolls evade taxes by understating the compensation and paying rest in hard cash.

Do not deduct tax at source and see how many people pay the taxes. Don't want to brag about anything, but since last five years, it is now pinching me also. When I see my hard earned money lavishly spent on "Alalay Talalay", on expensive hotel rooms for large entourage, Hajj on public money, distribution of laptops and solar systems to achieve political millage, etc. A never ending list. It pinches me when Zardari pays less tax then me and NS pays not even 10% of what AZ paid; especially when I see their palaces against my modest residence.

Give salary class also a chance to evade tax for a couple of years and then give them amnesty to invest in small ventures. You will find that they will, unlike present tax evaders who take all their looted money out of country. The other day I heard a very interesting proposition by Dr Abdul Basit (the lawyer) he was asking women to deposit all their gold with government to save this country. Why not ask NS and AZ to bring in their dollars sitting idle abroad and support national economy. Why it is common man who is to sacrifice always and elite class is always exempted. I still remember what he did with the money collected in Qarz Utaro Mulk Sanwaro Scheme.

 

[BelligerentPacifist]

...

Give salary class also a chance to evade tax for a couple of years and then give them amnesty to invest in small ventures. You will find that they will, unlike present tax evaders who take all their looted money out of country. ...

If the salaried class doesn;t pay taxes, adn they're almost exclusively responsible for much of our tax collection, then how would the state infrasctucture run?

The solution for me would be highly focused taxes, both sector-wise and regionally, so people see what their tax money is giving them back; and probably a sytem of finances that's extremely transparent so we could even track one bank note spent by somebody to that somebody.

 

[Panther 57]

If the salaried class doesn;t pay taxes, adn they're almost exclusively responsible for much of our tax collection, then how would the state infrasctucture run?

The solution for me would be highly focused taxes, both sector-wise and regionally, so people see what their tax money is giving them back; and probably a sytem of finances that's extremely transparent so we could even track one bank note spent by somebody to that somebody.

I very much agree with you. My response was on giving amnesty to tax evaders. I am of the opinion is:
1. abolish income tax
2. ensure all transactions above 5000 through bank
3. deduct 1% in and out transaction of bank
4. highest denomination of currency note should be 100 or 500.
5. encourage plastic money and announce incentives on same.

These steps will generate much more revenue then what government is targeting now and unable to achieve. It will also ensure that everyone pays tax, thus when it comes to public demonstrations, they will think twice before damaging public property. They will see their money burning.