Restoration of Cellphone Tax by Supreme Court of Pakistan , Step in right direction

[Talha Asif]

The Mass transit systems have massive potential to fill up FBR accounts if it is done right

Lahore Metro Bus completed
Islamabad Metro Bus completed
Multan Metro Bus completed
Peshawar Metro Bus 97% completed
Lahore Metro Train 98% completed
-----------------------------------------------
Karachi Metro Bus (Under construction)
Karachi Circular Railways (Under construction)

If the ridership reaches 10 Million Daily Riders , then we can start charging ideal rate of
100 rupee per 2 way trip , with 20 rupee FBR tax

500 Million USD FBR Tax collection from Fully Running Transit System


Ridership can be increased with a ban on Motor cycles during work hours
Car owners can be asked to buy a Road Pass Permit during work hours to use road

Ary bhai kis dunia me rehty ho? Rs100+20 are you insane? Even on Rs20 ticket Multan Metro not reaching its target and you impose Rs120? And its hit directly to poor+Middle class not rich class

 

[Maxpane]

Ary bhai kis dunia me rehty ho? Rs100+20 are you insane? Even on Rs20 ticket Multan Metro not reaching its target and you impose Rs120? And its hit directly to poor+Middle class not rich class

he simply wants wipe out the poor in this world

 

[Talha Asif]

After a small period of struggle , in 3-8 years, our economy will be stabilized

For Day to Day usage people can always use ATM machine to with draw , 1,000 rupee or 2,000 rupees


If 5,000 Rupee note and 10,000 rupee note is taken out of circulation , and alternative cash is deposited in a Bank account , people's money is 100% safe but it will be living in Bank

So people can withdraw small amount every month.


**Only people who will have problem is who have stashed up 5 crore to 10 crore in homes when they will bring their money to bank of course their money will get deposited in Bank Accounts but they will have to give some explanation for the cash , they can opt to just pay 15% Tax on that money and no questions will be asked

Their NADRA card will be needed and FRB will be informed , of course if 15% Tax is paid on that money their will be no inquiry, 1 % of that will go to Pakistan Dam fund

They will get Receipt from Bank Clean money + Dam fund donation

EXAMPLE: Some guy brings 10 Crore (100,000,000 Rupees) for exchange
15 % Tax on spot will be 15,000,000 or he can deal with FBR


The bigger benefit would be the Banks will have large Deposits stored and this they will be able to make investments in Local Economy based on strength of their deposits




In rural areas , most villagers will not have these 5,000 or 10,000 rupee notes
only the big Farm Land owners will have , 20-30 Crore in his Villa , when he will come to Bank to exchange the notes in City , of course he can also pay the 15% Tax owned on his Agricultural goods and we will be all "GOOD"

15 % tax on 30 Crore Agricultural Income = 4.5 Crore in taxes

He will get a receipt of Agricultural Tax 15% , and 1% will go to Dam fund

There are no 10,000 rupee in Pakistan
Peoples in rural areas have no access to ATM'S easily because banks mostly not install ATM IN rural areas

 

[Sugarcane]

Let's do some maths....

• On load on 100,we pay 25(100-25=75)
• Out of 75 we pay almost 15 more in term of 19% sales tax.
• So,you are only left with 60.Out of every 100 you load,you just get 60.
• If i am not wrong that's most taxed item in Pakistan.(40% of every amount you load you are losing)
• What is formula which permits them that?

Technically 25 is withholding/advance income tax, You can adjust it against your payable tax while filing tax return, or claim refund if you have paid extra taxes. As majority of people don't pay income taxes and file tax returns, so they don't get it adjusted or get refund.

Restoration of Cellphone Tax by Supreme Court of Pakistan , Step in right direction

How is it step in right direction to tax some filthy rich guy (say texting his UAE scam cartel) the exact same on something as a poor guy using his cellphone to try grow say his street-stall business? This is same reason why GST should also be as small as possible given its a catch-all consumer tax (no matter how rich/poor the consumer is).

Tax revenue should be increased (by good investigation process) on things that actually are genuine low hanging juicy fruit (veiled or even denied by the oligarchs)...not on common stuff like this that proportionally helps lot of middle class and poor get by in current hard times....and expand positively in good times.

@VCheng and @MUSTAKSHAF are right, this is just a shakedown that will be counter-productive and worse, sets a bad precedent for more money-grabs from regular folks.

The key is always to look at what goods/services the corrupt-rich/oligarchs are consuming and accumulating near exclusively....go after those as priority...since the targetting is actually worthwhile in first place. This is also important to incentivise honest-rich + middle class to keep being that way and not target their liquidity flows by accident (given those are insturmental in helping jobs and growth).

In a society where there's no culture of filing tax returns and paying income tax, people vote for petty benefit instead of merit, demand for freebies & subsidies. Indirect taxes are somewhat effective tool to generate funds.

 

[Sine Nomine]

Technically 25 is withholding/advance income tax, You can adjust it against your payable tax while filing tax return, or claim refund if you have paid extra taxes. As majority of people don't pay income taxes and file tax returns, so they don't get it adjusted or get refund.

That is mafia,day light robbery.
They know that 70% don't knows about it and they won't understand even an iota about their made tax form.

We all know that most of people capable of paying taxes are associated with one or another Political Firm.Their utmost strive is to save these poodles.
Rest left almost 70% slaves are nothing,they live they die doesn't matters much.

 

[Sugarcane]

That is mafia,day light robbery.
They know that 70% don't knows about it and they won't understand even an iota about their made tax form.

We all know that most of people capable of paying taxes are associated with one or another Political Firm.Their utmost strive is to save these poodles.
Rest left almost 70% slaves are nothing,they live they die doesn't matters much.

You can't blame Telecom companies as tax is deducted and deposited to government, you can get certificate for same from these companies. IF (big IF) telecom companies are deducting but not depositing all withholding tax then Audit firms & FBR is the first who should be questioned.

How much balance a poor man let's say earning minimum wage of 15,000 will be spending on mobile charges in a month? 500 means 3.33% of his income which is highly unlikely, that still is Rs. 125 a month (which is also refundable as he doesn't fall in taxable income). And there shouldn't be any excuse for not filing tax returns and those not doing so should be penalized by means of WHT (doesn't matter they are rich or poor) - Yes, filing tax return is still not that simple, it's difficult specially for people who are not literate or have computers, for this put pressure on government to provide easy means of filing tax returns (who this can be done is another topic). We must understand the root cause & try to fix that, the 70-80% slaves are the main tool which tax evaders & corrupt use to blackmail state, because these are people who are idiotically ready to protest, block roads and burn the property for benefit of 5-10%.

 

[Kakaspai]

It's ok because people don't like to file Tax forms

Great idea.Punish the poor because govt cant get rich to file the tax forms[emoji23][emoji23]

 

[Sugarcane]

Great idea.Punish the poor because govt cant get rich to file the tax forms[emoji23][emoji23]

Government will surely not become rich from tax returns, but when majority is filing tax returns then government can surely introduce laws to penalize the minority not filing. When people are filing tax returns than they can be questioned in case their standard of living contradict the income shown in tax returns hence you can catch tax evaders and get taxes from them which will surely help the state to increase revenue.

I was against it when previous cheap justice pulled publicity stunt of removing this tax, and appreciate judiciary restoring it. I agree that people who earn less than taxable income shouldn't pay the tax, but earning less than taxable income doesn't mean that you are exempted from law of land (i.e. filing tax return is obligation of every adult citizen as per law of Pakistan in case you don't know). If you say that government shouldn't impose WHT altogether, then I am against it. But if you say that government should make tax return filing easy for citizen (specially facilitate poor & illiterate), we will file our tax returns and WHT should be charged only to those whose income is taxable then I will be standing in first line in support.

 

[maithil]

Every step which burdens poor even more, is a Step in right direction in Naya Pakistan.

 

[alibaz]

I think government shall abolish income tax, if so many indirect taxes have to be imposed. why are they screwing us under 2 million people.

 

[AZADPAKISTAN2009]

There is no point for Income Tax
Person's NADRA Number , and Tax Number is needed

1- Cell phone Tax

2- Road Permit Tax (If car is owned or Motor Bike) and City Roads are used

3- Home Owner , must Pay property Tax , tied to his Tax Number

4- Transit System Tickets (Taxed : Bus Ticket Transit Usage Tax)

5- Metro Train Tickets (Taxed : Metro Train Transit Usage Tax)

6- Train Passenger Ticket (Taxed : Train System Usage Tax)

7- Airport Passengers Passing Thru Airport (Taxed : Airport Security Tax)

8- TV Purchase Tax , TV ownership Tax (Similar to Japan's TV Tax)

9- Tax on Food

10 - Tax on Textile

11- Property Sale/ Exchange Tax

12 - Small shop 1,000 rupee per month Tax

13 - Qurbani Animal Slaughter tax

14 - Expiration of 5,000 and 10,000 rupee notes and Taxation on Converted cash into
ATM Card and digital currency (People with Abnormal amount of money may pay 15%
tax to clean their asset)

• Target Money hidden in homes and Village Villas by Farm Land lords & Politicians

Common practice in Villages / Politicians / Big Company Owners / Farm land owners
When people will be forced to replace their 5,000 and 10,000 notes , the big money Hoarders will be forced to pay 15% Tax


Money Hoarders
> Restaurant Owners
> Farm Land Owners
> Politicians
> Government workers dealing in contracting
> People who run Bus networks between cities
> Tanker Mafia
> Hundi /Hawala
> Judges / Lawyers / Doctors out of tax net
> Real Estate Dealers / Property Ex changers
> Petrol Pump owners
> Big Mega Grocery plaza Owners

Every one who brings these Boxes , for conversion to new currency , charge 15% Tax and given them a Bank Account + ATM card , and Certificate for Tax Payment

 

[HammerHead081]

There is no point for Income Tax
Person's NADRA Number , and Tax Number is needed

1- Cell phone Tax

2- Road Permit Tax (If car is owned or Motor Bike) and City Roads are used

3- Home Owner , must Pay property Tax , tied to his Tax Number

4- Transit System Tickets (Taxed : Bus Ticket Transit Usage Tax)

5- Metro Train Tickets (Taxed : Metro Train Transit Usage Tax)

6- Train Passenger Ticket (Taxed : Train System Usage Tax)

7- Airport Passengers Passing Thru Airport (Taxed : Airport Security Tax)

8- TV Purchase Tax , TV ownership Tax (Similar to Japan's TV Tax)

9- Tax on Food

10 - Tax on Textile

11- Property Sale/ Exchange Tax

12 - Small shop 1,000 rupee per month Tax

13 - Qurbani Animal Slaughter tax

14 - Expiration of 5,000 and 10,000 rupee notes and Taxation on Converted cash into
ATM Card and digital currency (People with Abnormal amount of money may pay 15%
tax to clean their asset)

• Target Money hidden in homes and Village Villas by Farm Land lords & Politicians

Common practice in Villages / Politicians / Big Company Owners / Farm land owners
When people will be forced to replace their 5,000 and 10,000 notes , the big money Hoarders will be forced to pay 15% Tax


Money Hoarders
> Restaurant Owners
> Farm Land Owners
> Politicians
> Government workers dealing in contracting
> People who run Bus networks between cities
> Tanker Mafia
> Hundi /Hawala
> Judges / Lawyers / Doctors out of tax net
> Real Estate Dealers / Property Ex changers
> Petrol Pump owners
> Big Mega Grocery plaza Owners

Every one who brings these Boxes , for conversion to new currency , charge 15% Tax and given them a Bank Account + ATM card , and Certificate for Tax Payment

Good bot

 

[Nilgiri]

In a society where there's no culture of filing tax returns and paying income tax, people vote for petty benefit instead of merit, demand for freebies & subsidies. Indirect taxes are somewhat effective tool to generate funds.

I just think its draconian (and you will start collapsing economy base if it goes on too much) to go after something that 90% regular+poor ppl use and 10% elite use by activity/throughfare rate (going argument only on its there and scale is big and easy to tax)......rather than go after the inverse things first (90% elite use, 10% regular joes)....and then everything in between as required well before you get to this kind of sector activity.

Taxing something simply because its big target, guaranteed return, easy to do etc.... is very dangerous precedent...and over time the real economy suffers and you create more reason to need even more loans and bailouts later.....favouring oligarch entrenchment even more.

I mean same argument can be used for oil tax, why not just tax the petroleum by 100, 200, 300% more? If its bad idea for that, why is it good idea for other mass use activity things in economic base?

Things should be targetted on the oligarchs first thing, not the serfs.

At the least have a data/minutes threshold where the tax does not apply so small time users who are small business guys and regular joes etc, do not need to suffer just for regular crucial use of the phone.

 

[AZADPAKISTAN2009]

It's easier to , catch more culprits with Expiry notice on 5,000 and 10,000 rupee notes
force people to bring cash to banks and get ATM cards/ Bank accounts

NAB recovers assets beyond means from Government official
https://www.dawn.com/news/1444576

Luxury car, Rs14.5m in cash ‘belonging to Cheema’ seized

LAHORE: The National Accountability Bureau (NAB), Lahore, raided a car showroom on Jail Road here on Monday and seized a luxury car and Rs14.5 million in cash allegedly belonging to former Lahore Development Authority director general Ahad Khan Cheema.

According to an official source, a NAB team in connection with the Rs14bn Ashiyana-i-Iqbal housing scam raided the showroom and seized a Prado worth Rs11m and Rs14.5m in cash which Ahad Cheema had allegedly hidden there



NAB finds cash, valuables worth millions at residence of Sindh LG secretary's assistant
https://www.dawn.com/news/1402566

It's easier to , just expire the 5,000 rupee note and 10,000 rupee note force it back into Pakistani Local Banking Channel

 

[Sugarcane]

I just think its draconian (and you will start collapsing economy base if it goes on too much) to go after something that 90% regular+poor ppl use and 10% elite use by activity/throughfare rate (going argument only on its there and scale is big and easy to tax)......rather than go after the inverse things first (90% elite use, 10% regular joes)....and then everything in between as required well before you get to this kind of sector activity.

Taxing something simply because its big target, guaranteed return, easy to do etc.... is very dangerous precedent...and over time the real economy suffers and you create more reason to need even more loans and bailouts later.....favouring oligarch entrenchment even more.

I mean same argument can be used for oil tax, why not just tax the petroleum by 100, 200, 300% more? If its bad idea for that, why is it good idea for other mass use activity things in economic base?

Things should be targetted on the oligarchs first thing, not the serfs.

At the least have a data/minutes threshold where the tax does not apply so small time users who are small business guys and regular joes etc, do not need to suffer just for regular crucial use of the phone.

First of all it's Advance tax which is adjustable/refundable,, you can't compare it with Sales Taxes, Duties and Surcharges You don't fall in taxable bracket or have already paid your taxes than you can file return and get it refunded. Introducing SLAB is of no use as people will get more SIMS (as Mobile Sims are literally free) to evade tax, If a person is spend more then PKR 300 (i.e. 1% of his income) on mobile charge than he falls in category where as per law of Pakistan filing tax return is mandatory and he can get WHT refunded/adjusted - If he is not filling returns then I don't find any issue that he didn't get refund, he may consider it fine.
Second, poor man doesn't get that much effected because he at max spend 100 or 200 in a month on that 20-40 Rs. WHT is not that much that he will die specially when he have mobile and can spend 100-200 Rs. per month on it. It's mainly middle class and rich who spend more on mobile charges and will pay more WHT - They should be filing their tax returns if they are paying applicable tax and get WHT adjusted/refunded, If they aren't paying income tax then why they should be shown sympathy?
There are already lots of taxes on fuel in Pakistan (around 55%), and yes these indirect taxes effect the public most that why people should pay more direct taxes instead of indirect taxes - to avoid compounded effect of indirect taxes, and to know how much they are paying so that while voting they should know whom they are electing to spend their money. This Withholding/Advance tax is direct tax.
The mindset of our third world countries is that we will choose to crucify one law abiding person to save 99 persons who don't follow the law because they are majority. Few hundred thousands out in 210m population file tax returns, what's difference between those following law and majority 99% who don't? None, in fact they are punished as it's only them who are in record of tax department and tax department send notices to same people to create headline that FBR issue notices to that xyz thousands potential tax evaders. These few hundred thousands people can't pressurize the government to fix FBR because they are minority while the forking majority who don't follow the law isn't interested in it because it's none of their concern.