crankthatskunk
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- May 20, 2011
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Pakistan facing dire economic conditions for a long while. The main reason for the economic vows is the low tax collection. Not enough people are registered as tax payers in a nation of 200 million. Until recently just over a million people were tax filers. The count is reaching to two million this year, no small thank to the efforts of PTI government, which is trying to streamline the taxation and tax collection system in Pakistan.
Passing of 18th Amendment by the Parliament hasn’t help to improve the situation. Now after the interest payments on the loans half of the money is distributed to the provinces under the 18th amendment. Leaving very little for the federation to spend on defence, infrastructure, health, education, R & D and on other expenditures. As a result the Federal Government restores to the internal and external loans financing to meet its expenses.
I am all for provincial autonomy, but it should be introduced after implementation of responsible and financially answerable local bodies system. Without decentralisation of powers to the lower levels distribution of funds to the provinces is proven to be a recipe for disaster. With two known Dacoit families Zardaris and Sharifs sitting on the helm of two provinces of Sind and Punjab vast majority of allocated funds were diverted to overseas. Money laundered to their family accounts through complicated and devilishly designed, twisted networks of operatives, banks and other means.
The evidence how money was stolen and laundered to the UAE, UK, USA and other parts of the world by the two families is becoming apparent to the Pakistanis. Not a single day go by without new revelations about TTs and fake bank accounts transfers hitting the national media.
As a direct result of it Pakistan’s economic vows continues to get worse. The two prone attacks of stealing and tax evasion resulted in the Federal Government restoring to regressive form of tax collection. Increasing indirect taxes on the utilities and other commodities, burdening the poor masses. A burden which should have been shared by the wealthy. Millions of traders in the country pay almost next to nothing in taxes, while earnings crores of rupees in taxable income. Plenty of them even earning in billions of rupees.
Even the 17% Sales Tax levied on goods and services is collected by the traders, restaurants etc. on behalf of the state but majority of it is never paid to the state. The state apparatus seems to be powerless and clueless how to make the traders pay back what is collected on behalf of the state.
In Europe avoiding VAT repayment and in the USA repayment of Sales Tax would result in jail sentences for the evaders. But in Pakistan these criminals issue threats to the state and announce strikes against any efforts to collect the tax dues.
The latest FBR collection figures shows that Sales Tax (in indirect taxes) is almost equal to the Direct Taxes collected by the FBR.
With emphasis on these two revenue streams Pakistan can overcome its economic problems.
Pakistan needs to double its efforts of making the businessmen and traders to pay the income tax on their incomes and make concrete measures for the recovery of the sales tax from the traders and service providers collected on State’s behalf by them.
Pakistan needs to implement the above two regimes of tax collection on emergency footings to avoid the debilitating and depleting economic conditions of the country.
Doubling of the two streams would alleviate the suffering of the poor of Pakistanis and would help to provide reliefs to the poorest in the society, while reducing the burden of debt financing.
The main reason such tax evasion culture has developed because the worst examples are set from the top. As the sayings goes, “a fish rots from the head”.
A specimen of such behaviour is the Ex-Crime Minister selected 3 times by his pals in the establishment. Please listen to his explanation regarding the payment of the Sales Tax to the State. He clearly mentioned he could have easily kept it. God knows how much he did kept.
His dishonesty continued; he is counting the Sales Tax as “Direct Taxes” he should have paid on his incomes in line with his “King’s” life style.
This interview was arranged for propaganda purposes by the Ex-Crime Minister to fool the Pakistani nation and to dispel the rumours that he and his family don’t pay income taxes in line with their life styles. Same is true for Zardaris. For this purpose two Poodles journalists, the favourites of Sharifs were selected. These two traitors forget to tell the nation that paying back the Sales Tax collected on behalf of the State from the buyers had nothing to do with the criminal Nawaz.
Long live Pakistan. We all should wake up and start to behave like responsible citizens.
My prayers are that the establishment, departments and governments should grow some balls and arrest all the criminals involved in money laundering, stealing from the state, withholding collected sales taxes, evading direct taxes, etc. Act now, no single person is bigger than Pakistan. This is the only way to save Pakistan from the disasters it is facing.
Passing of 18th Amendment by the Parliament hasn’t help to improve the situation. Now after the interest payments on the loans half of the money is distributed to the provinces under the 18th amendment. Leaving very little for the federation to spend on defence, infrastructure, health, education, R & D and on other expenditures. As a result the Federal Government restores to the internal and external loans financing to meet its expenses.
I am all for provincial autonomy, but it should be introduced after implementation of responsible and financially answerable local bodies system. Without decentralisation of powers to the lower levels distribution of funds to the provinces is proven to be a recipe for disaster. With two known Dacoit families Zardaris and Sharifs sitting on the helm of two provinces of Sind and Punjab vast majority of allocated funds were diverted to overseas. Money laundered to their family accounts through complicated and devilishly designed, twisted networks of operatives, banks and other means.
The evidence how money was stolen and laundered to the UAE, UK, USA and other parts of the world by the two families is becoming apparent to the Pakistanis. Not a single day go by without new revelations about TTs and fake bank accounts transfers hitting the national media.
As a direct result of it Pakistan’s economic vows continues to get worse. The two prone attacks of stealing and tax evasion resulted in the Federal Government restoring to regressive form of tax collection. Increasing indirect taxes on the utilities and other commodities, burdening the poor masses. A burden which should have been shared by the wealthy. Millions of traders in the country pay almost next to nothing in taxes, while earnings crores of rupees in taxable income. Plenty of them even earning in billions of rupees.
Even the 17% Sales Tax levied on goods and services is collected by the traders, restaurants etc. on behalf of the state but majority of it is never paid to the state. The state apparatus seems to be powerless and clueless how to make the traders pay back what is collected on behalf of the state.
In Europe avoiding VAT repayment and in the USA repayment of Sales Tax would result in jail sentences for the evaders. But in Pakistan these criminals issue threats to the state and announce strikes against any efforts to collect the tax dues.
The latest FBR collection figures shows that Sales Tax (in indirect taxes) is almost equal to the Direct Taxes collected by the FBR.
With emphasis on these two revenue streams Pakistan can overcome its economic problems.
Pakistan needs to double its efforts of making the businessmen and traders to pay the income tax on their incomes and make concrete measures for the recovery of the sales tax from the traders and service providers collected on State’s behalf by them.
Pakistan needs to implement the above two regimes of tax collection on emergency footings to avoid the debilitating and depleting economic conditions of the country.
Doubling of the two streams would alleviate the suffering of the poor of Pakistanis and would help to provide reliefs to the poorest in the society, while reducing the burden of debt financing.
The main reason such tax evasion culture has developed because the worst examples are set from the top. As the sayings goes, “a fish rots from the head”.
A specimen of such behaviour is the Ex-Crime Minister selected 3 times by his pals in the establishment. Please listen to his explanation regarding the payment of the Sales Tax to the State. He clearly mentioned he could have easily kept it. God knows how much he did kept.
His dishonesty continued; he is counting the Sales Tax as “Direct Taxes” he should have paid on his incomes in line with his “King’s” life style.
This interview was arranged for propaganda purposes by the Ex-Crime Minister to fool the Pakistani nation and to dispel the rumours that he and his family don’t pay income taxes in line with their life styles. Same is true for Zardaris. For this purpose two Poodles journalists, the favourites of Sharifs were selected. These two traitors forget to tell the nation that paying back the Sales Tax collected on behalf of the State from the buyers had nothing to do with the criminal Nawaz.
Long live Pakistan. We all should wake up and start to behave like responsible citizens.
My prayers are that the establishment, departments and governments should grow some balls and arrest all the criminals involved in money laundering, stealing from the state, withholding collected sales taxes, evading direct taxes, etc. Act now, no single person is bigger than Pakistan. This is the only way to save Pakistan from the disasters it is facing.
