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PMLN experience: Tax base shrinks by a third !

Don't you find it ridiculous that your tax base contracts by a third in reality, while your government proclaimed that it actually widened?

I don't care about anything else other than net tax collected,as i started the discussion based on net tax collection

So far the numbers i remember

2011-12 (In PKR)

1750Billion

2012-13

1950Billion(10% increase)

2013-14(onwards this govt)

2275Billion (16.5% increase)

2014-15(this year)

So far 19.5% is the growth rate in the first 4 months,i have already made the calculation in the other thread related to the tax

target is 2810Billion pkr or 24% but i doubt we will go beyond 20%.

NOTE:India overall tax collection growth is only 5.6%(Projected)
 
I don't care about anything else other than net tax collected,as i started the discussion based on net tax collection

So far the numbers i remember

2011-12 (In PKR)

1750Billion

2012-13

1950Billion(10% increase)

2013-14(onwards this govt)

2275Billion (16.5% increase)

2014-15(this year)

So far 19.5% is the growth rate in the first 4 months,i have already made the calculation in the other thread related to the tax

target is 2810Billion pkr or 24% but i doubt we will go beyond 20%.

NOTE:India overall tax collection growth is only 5.6%(Projected)

India GDP to tax ratio is 10-11%, not much better then Pakistan.
 
Contrary to the federal government’s claims of widening the tax net, the country’s already negligible tax base has shrunk by a third by the end of the ruling party’s first year in power.

According to officials of the Federal Board of Revenue (FBR), only 550,000 people filed income tax returns for fiscal year 2013-14 by November 21 (Friday), the last date of submission. As many as 835,000 people had filed tax returns the previous year.

Talking to The Express Tribune, FBR Chairman Tariq Bajwa said the number of tax returns was expected to increase as the government has waived off penalties on late filing till December 5.

However, the results so far suggest the government’s problems may mount further as it is already struggling to convince the International Monetary Fund (IMF) about its abilities to achieve this year’s tax target of Rs2.81 trillion.

The 550,000 figure is more depressing given the target set by FBR itself. The PML-N government had asked FBR to increase the tax base by 50% and bring in at least 1.25 million more people under the net by the end of its first year in power.

The desperate federal government said it will not charge any additional tax, penalties and surcharges, if the people file the returns till December 5 along with the due taxes, according to a handout issued by the FBR. The original date for filing the return was September 30, which was extended thrice.

For the last fiscal year, the PML-N government had set its target for increasing the tax-to-GDP ratio to 10.2%. But the ratio remained at 9.3% of GDP.

The latest results also put a big question mark over the government’s strategy to increase the base by increasing cost of living and doing business for those who prefer to remain outside the tax net. In its second budget that was passed by the National Assembly in June, the government set higher tax rates on purchase of vehicles, cash withdrawal from banks, purchase of property and other such transaction for those who do not file the returns.

“The strategy to penalise non-filers without addressing structural weaknesses of the tax system has backfired,” said Dr Ikramul Haq, an expert in income tax policies and a Supreme Court lawyer. He said the figure of 550,000 returns suggests that even all the civil servants, officers of the armed forces and judiciary did not file the returns.

The officials in the FBR said the FBR’s decision to change the e-filing software without testing it also became a reason for dismal results. They added the taxpayers faced many difficulties in filing the returns through the FBR’s designed IRIS system. The Member Information Technology Miss Raana Ahmad also made changes in the return form without seeking formal input of the Inland Revenue Policy wing, they added.

there is a fundamental problem here. our system has divorced reforms with accountability. everyone wants to make new laws etc without holding the criminals/thieves accountable. When I know that I will not be held accountable for a certain crime, what incentive do I have in obeying the existing law what to talk about the new laws/reforms?

But when our political elite themselves are the biggest thieves of public money, why ever expect the accountability!
 
India GDP to tax ratio is 10-11%, not much better then Pakistan.

10.2% is the Tax to GDP ratio of India,almost similar to our.

Indian Revenue collection is 181Billion dollars as compared to 39-43Billion dollars of our.
 
Over 3.46 crore individual taxpayers in country: Government

NEW DELHI: There were slightly over 3.46 crore effective taxpayers in the country during the 2012-13 financial year, Government today informed Parliament.

Minister of State for Finance Nirmala Sitharaman said in a written reply to Lok Sabha that while there were 3,46,04,064 individual assessees, the figure under the companies category stood at 5,90,288 in the latest data compiled for 2012-13.

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The data for 2013-14 fiscal is yet to be compiled, she said.Sitharaman said there was a total outstanding (provisional) of Rs 3,28,519 crore under the Income Tax category and of Rs 3,21,055 crore under the corporate tax category till June 2014.Replying to a separate question, the minister said a case of unauthorised issue of refunds of Income Tax using login ID and password of an retired officer was detected in 2012 which has since been referred to CBI for investigation.She also said that a number of measures have been taken to prevent the occurrence of such scams."A new password management policy has been implemented wherein changing/resetting of password is mandatory after an interval of 30 days, the user ID of an employee will be automatically disabled on his date of superannuation and immediate investigation and stern action against officers found to be guilty" among others are some of the measures implemented to counter the problem, shsaid.


 
Over 3.46 crore individual taxpayers in country: Government - Economic Times

compare it with pakistan

According to officials of the Federal Board of Revenue (FBR), only 550,000 people filed income tax returns for fiscal year 2013-14 by November 21 (Friday), the last date of submission. As many as 835,000 people had filed tax returns the previous year.

But the gross revenue of Total Tax collection in india is 181Billion dollars as compared to 39.5Billion dollars for Pakistan or 4.5times

i hope i am not wrong,
 
But the gross revenue of Total Tax collection in india is 181Billion dollars as compared to 39.5Billion dollars for Pakistan or 4.5times

i hope i am not wrong,

your figure for pakistan is wrong. pakistan annual budget is around 30 bn usd. how can it be so lower if your tax collection is so high ?
 
Govt is now making the differentiation based on filers and non-filers contrary to tax payer and non-tax payer. So even if someone pays income tax but as long as he/she doesn't file his/her return, he/she wouldn't be entitled to incentives for filers. But disclosure requirements have increased in filing of returns. This has pulled some people out from filling their returns.
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But the gross revenue of Total Tax collection in india is 181Billion dollars as compared to 39.5Billion dollars for Pakistan or 4.5times

i hope i am not wrong,

Do you know India indirect taxes amunt?
 

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