Pakistanis spend nearly half of their income on food: Report

[XenoEnsi-14]

Does this mean food is expensive compare to other countries? hmmm

Wow, Pakistan is a piranha eating machine. How is America only at 6.6%? I spend at least 15%, food should be tax free. It's tax free in America from what I know.

 

[kawaraj]

data may be skewed.

as long as we eat strong and healthy, it does not matter.

 

[Hamartia Antidote]

Wow, Pakistan is a piranha eating machine. How is America only at 6.6%? I spend at least 15%, food should be tax free. It's tax free in America from what I know.

It's not that they eat more. It just means prices of food compared to average income is high.
Just think of it like gas prices. If gas prices on the world market are $100 barrel that's going to hit somebody in Pakistan harder than someone in the US.

In reality locally grown food prices may even be much lower than the US but still high compared to average income. A person in the US could spend $2500 on food vs say $500 in Pakistan and they'd still be paying a smaller percentage of per capita income.

 

[qamar1990]

No, it means that the tax system in Pakistan is completely screwed up.

Instead of charging income tax, which would be paid more by the rich, the Pakistani system puts tax on food, petrol and basic necessities which punishes poor and middle class people.

If you make Rs. 100,000 a month and pay Rs 20,000 in food tax, you pay 20% of your income on tax.

If you make Rs 50,000 a month and pay Rs 20,000 in food tax, you pay 40% of your income on tax.

most people make under 15,000 a month….
so they end up paying over 50 percent??

 

[Developereo]

most people make under 15,000 a month….
so they end up paying over 50 percent??

Depends how much they spend on food, petrol, etc.

The point is that, the less you earn, the bigger percent of your income goes to paying for basic necessities. So a tax on basics punishes poorer people more than richer people.

 

[Hamartia Antidote]

Depends how much they spend on food, petrol, etc.

The point is that, the less you earn, the bigger percent of your income goes to paying for basic necessities. So a tax on basics punishes poorer people more than richer people.

Correct. For instance the US has no taxes on food but they do tax restaurant meals.
The US does hit people with "sin taxes" on things like alcohol.

 

[manojb]

Correct. For instance the US has no taxes on food but they do tax restaurant meals.
The US does hit people with "sin taxes" on things like alcohol.

Other countries do hit people with sin taxes. People in US r hit hard by medical and health care. Above graph is inverted if we compare health care!

 

[OrionHunter]

Are you saying that we Pakistanis eat too much?

Yes! If your smiley is anything to go by!!

 

[Developereo]

Correct. For instance the US has no taxes on food but they do tax restaurant meals.
The US does hit people with "sin taxes" on things like alcohol.

The subject actually becomes a lot more complicated in some cases. I know some states, like California, decided to tax snacks, but not basic staples. So, a potato would not be taxed, but potato chips would be. Frozen french fries were not taxed, but cooked fries were.

However, the basic principle remains that things people need to survive should not be taxed, or taxed very little.