Only $10+ billion for 100 million Punjabis (Need drastic increase in budget)

[FaujHistorian]

I was reviewing Punjab budget highlights

http://punjab.gov.pk/?q=system/files/Receipt.pdf

It shows pathetic state of Punjab in particular and Pakistan in general.

This is in no way a snub to PLMN because the trend is similar under other parties and in other provinces.

So the total earning of Punjab is $12 billions. This is pathetic.


Imagine, 100 million people with immense resources of food and industry, earn just an equivalent of $120 a year or just $10 a month.


This means we need to go back to drawing board and totally overhaul the way Punjab (and Karachi) think about utilizing their resources.

Only increasing taxes through petro/bijli/gas prices hikes won't do.

Only increasing rupee collection through income tax won't do.


The question is,

How can 100 million Punjabis can use exports and tourism to earn "real dollars/Euros/gold" aka "hard currency" and earn in the tune of at least $500 a years.


This would put Punjab's revenues $500 x 100 million = $50 billions a year. (note the earning is dollars/hard currency)

this by the way is meager earning from international standards. But it will be good start.

This will help not only Punjab but all provinces and above all "our military"

 

[Armstrong]

No Tax....No Budget !

 

[Dillinger]

No Tax....No Budget !

Sinister munshis like you who help the lard bellies dodge their taxes and find loopholes for them are to blame, hang your head in shame.

 

[Armstrong]

Sinister munshis like you who help the lard bellies dodge their taxes and find loopholes for them are too blame, hang your head in shame.

Fortunately or unfortunately I only studied British Taxation system !

So whereas I may be able to tell someone what to do or what not to do when the taxes are being paid to Her Majesty's Customs & Revenues - I haven't got a clue how the Pakistani Tax System works !

And thank the Maker for it - Tax Advisory is very boring work from what I hear !

 

[Dillinger]

Fortunately or unfortunately I only studied British Taxation system !

So whereas I may be able to tell someone what to do or what not to do when the taxes are being paid to Her Majesty's Customs & Revenues - I haven't got a clue how the Pakistani Tax System works !

And thank the Maker for it - Tax Advisory is very boring work from what I hear !

So you work in collusion with sinister folks who have knowledge of the Pakistani tax laws to help the lard bellies ship their ill gotten wealth off to British shores, ensuring that they do not run afoul of the concerned British laws, still a shame.

 

[FaujHistorian]

Fortunately or unfortunately I only studied British Taxation system !

So whereas I may be able to tell someone what to do or what not to do when the taxes are being paid to Her Majesty's Customs & Revenues - I haven't got a clue how the Pakistani Tax System works !

And thank the Maker for it - Tax Advisory is very boring work from what I hear !

That's a mistake. HUGE mistake to compare taxes in "hard currency" vs. "softy currency".

British gov can collect taxes and use the money to pay for oil and tea and toys.

Punjab gov can collect taxes but CANNOT pay for anything except salaries.


Hope you understand.

 

[Hemlock Khalid]

indirect taxation will not do much good, but direct tax can change it completely... and m not talking only for Punjab... our tax revenue adds only 9% to GDP, while its more than one third of GDP in developed countries

 

[FaujHistorian]

So you work in collusion with sinister folks who have knowledge of the Pakistani tax laws to help the lard bellies ship their ill gotten wealth off to British shores, ensuring that they do not run afoul of the concerned British laws, still a shame.

if you are a salaried person in Pakistan, you pay all the taxes and then some.

If you are a shopkeeper/banya, then just like India (if I understand correctly), you have all kinds of loops, holes, fire escapes etc.

indirect taxation will not do much good, but direct tax can change it completely... and m not talking only for Punjab... our tax revenue adds only 9% to GDP, while its more than one third of GDP in developed countries

Direct taxes/revenues must be in "hard currency" vs. "softy currency"

US/British gov can collect taxes and use the money to pay for oil and tea and toys.

Punjab gov can collect taxes but CANNOT pay for anything except salaries.

 

[Dillinger]

if you are a salaried person in Pakistan, you pay all the taxes and then some.

If you are a shopkeeper/banya, then just like India (if I understand correctly), you have all kinds of loops, holes, fire escapes etc.

We used to, then we implemented VAT, that closed the loopholes significantly, that and efficiently implementing it since CENVAT goes to GOI itself rather than the states so there was an incentive on the govt.'s part to really get the ball rolling as it was a big revenue source in a sector hitherto screwed over by an inefficient sales tax system. Now when the GST comes in it will get even better.

 

[FaujHistorian]

We used to, then we implemented VAT, that closed the loopholes significantly, that and efficiently implementing it since CENVAT goes to GOI itself rather than the states so there was an incentive on the govt.'s part to really get the ball rolling as it was a big revenue source in a sector hitherto screwed over by an inefficient sales tax system. Now when the GST comes in it will get even better.

We have had VAT like taxes for a long time.

Please understand, the fine difference here.

--- Taxes collected by Punjab gov in Rupees mean nothing much for the big ticket items like fuel, food, chemicals, interest payments.

--- These taxes can only pay salaries to the gov baboos, teachers and professors.

 

[Dillinger]

We have had VAT like taxes for a long time.

Please understand, the fine difference here.

--- Taxes collected by Punjab gov in Rupees mean nothing much for the big ticket items like fuel, food, chemicals, interest payments.

--- These taxes can only pay salaries to the gov baboos, teachers and professors.

@Armstrong might know better, but If I am not wrong the Punjab province has the most efficient revenue collection system in Pakistan in relative terms, perhaps the problem lies in Sindh or KPK and that's where the system really needs to be shored up. After all tax laws are useless if they are not implemented properly.

 

[FaujHistorian]

@Armstrong might know better, but If I am not wrong the Punjab province has the most efficient revenue collection system in Pakistan in relative terms, perhaps the problem lies in Sindh or KPK and that's where the system really needs to be shored up. After all tax laws are useless if they are not implemented properly.

Again you are focused on revenue (taxation is just one part) in rupees.

Rupees are worth cr@p when it comes to big ticket imported items like energy (petrol, coal, gas).

please widen your thinking a bit more.

 

[Dillinger]

Again you are focused on revenue (taxation is just one part) in rupees.

Rupees are worth cr@p when it comes to big ticket imported items like energy (petrol, coal, gas).

please widen your thinking a bit more.

Yes but the tax base is what allows the government to either create or facilitate in the creation of productive assets which in turn bring in foreign currency through export, as such the currency reserves are going to remain low, unless you folks strike big on oil.

 

[FaujHistorian]

Yes but the tax base is what allows the government to either create or facilitate in the creation of productive assets which in turn bring in foreign currency through export, as such the currency reserves are going to remain low, unless you folks strike big on oil.

works both ways.

But please study history of nations.

No nation in the world became rich by taxing its own people.

No nation! Ever!

in fact nations progress the most when the taxes are extremely low and exports and tourism is extremely large.

Please try to use models when the currency of revenue is "hard currency" vs. "soft currency".

 

[Shabaz Sharif]

I was reviewing Punjab budget highlights

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Budget pitches at Rs 780 bln revenue, Rs 532 bln expenditure

It shows pathetic state of Punjab in particular and Pakistan in general.

This is in no way a snub to PLMN because the trend is similar under other parties and in other provinces.

So the total earning of Punjab is $7 billions. This is pathetic.


Imagine, 100 million people with immense resources of food and industry, earn just earn an equivalent of $70 a year or just $6 a month.


This means we need to go back to drawing board and totally overhaul the way Punjab (and Karachi) think about utilizing their resources.

Only increasing taxes through petro/bijli/gas prices hikes won't do.

Only increasing rupee collection through income tax won't do.


The question is,

How can 100 million Punjabis can use exports and tourism to earn "real dollars/Euros/gold" aka "hard currency" and earn in the tune of at least $500 a years.


This would put Punjab's revenues $500 x 100 million = $50 billions a year. (note the earning is dollars/hard currency)

this by the way is meager earning from international standards. But it will be good start.

This will help not only Punjab but all provinces and above all "our military"

The link you posted is from budget 2-3 years ago.