Tax Reforms needed to Get Pakistan 6 Billion Dollar Yearly

[AZADPAKISTAN2009]

Some time it look as we don't want to do things as they seem easier than others.
For example If we made mobile seller take advance mobile phone tax should be calculated (market value of handset ) on monthly basis against that SIM & CNIC. In this way frequent mobile phones changers can be taxed and tracked with their usage (i.e. road tax of cars) and the value of hand set ( tax on cars according to their age and engine size) to very easily estimate their undocumented income etc.
for example

Mobile phone Valued WH Tax (monthly & not felt )
less than 5,000 15 Rs. (0.5 daily) Evaluated as (15x4=60) on a head of family.
10,000 - 25,000 90 Rs. (3 daily)
25,000 - 50,000 150 Rs (5 //)
50,000 - 70,000 210 Rs (9 //)
more than 70,000 390 Rs (13 //)

Note: Mobile companies should be bound to design buckets accordingly or any other criteria to keep check on this
Mobile phone Usage (Rs) Income Tax (monthly )
less than 500 10% (avg 50 mins user, with 200/- monthly water bill its too soft)
500 - 1000 15% .
1000 20 % .

@Sucha Kuggu

You are 100% Correct some folks have stated to tax Phone Charges / Recharge in some form. This can be charged in some amount

• A 100 rupee charge on refill of cell phone balance would be OK should be 100% acceptable
• We need to figure out how to get that 100 rupee back from Telecom companies safely to Pakistan Federal Fund

FACT
Mobile Phone Users in Pakistan Cross 139.2 Million (70% Population have phones)

139,000,000 Million users x 100 (rupee Per Recharge Tax) = 13,900,000,000 Rupees (PER RECHARGE)

• 111 Million Dollars Brilliant idea
• How many times average Pakistani recharges their Phone card??? in 365 days I assumed 1 card update per month
• 1.3 Billion can be collected , by charging 100 rupee tax on refills

Example : Charge is Rupee 599, add 100 Rupee to this charge as Tax

Another card charging
799 Rupee , Add 100 rupee tax on it
Horrible hair by the model by the way

Here is a 1000 rupee top up , add 100 rupee tax on it

• So it seems for Pakistanis charging 600 Rupee phone cards to 1000 Rupee phone cards is not an issue

139,000,000 Million users x 100 (rupee Per Recharge Tax) = 13,900,000,000 Rupees (PER RECHARGE)

• 111,000,000 Million Dollars Brilliant idea (1 Month Charge by all Pakistani mobile users)
• 1,344,400,000 Dollar (12 Month Charge by all Pakistani users paying 100 rupee tax)

A cell phone user who pays 600 rupees , will not mind coughing up 100 rupee extra if tax is collected that way


Lets Summarize: (Current Situation)
Gain from Import / Export : +20 Billion Dollar/ - 35 Billion Dollar government focused on fixing this red number
Money we make from Income Tax : ????? This here is not working
Money we get from Remittance : +15-20 Billion Dollar / Annually


Proposed Improvements
Money we get from Proposed Tax reforms :
+21 Billion Dollar (5 year)

• QURBANI TAX : 10,000 Rupee per animal bought for Eid
• SMALL BIZZ PERMIT : 1000 Rupee per Shop/Monthly
• ROAD PERMIT (To Use Road) :100 Rupee per vehicle/Monthly
• Tanker MAFIA KILL initiative [This requires a military operation on mafia]

CELL PHONE AZADI TAX : 100 rupee per charge :
+1.3 Billion Dollars annually
About +6 Billion Dollar in 5 years


Hope our Economic team reviews these figures for some amazing ideas
All this money is hiding in lower to middle - upper class in Pakistan

 

[shah_123]

Just read the articles of Dr. Ikram ul Haq, the solution is right there --- it's about going after the rich elite class (which doesn't pay taxes). This requires some tough decisions, right now it seems the Govt isn't capable of taking such decisions.

The OP has taken the traditional way of going after the common people. ( I mean qurbani tax, tax from book sellers)

 

[SoulSpokesman]

@AZADPAKISTAN2009

AP sb,

Kudos for your suggestions. Everyone here is either blindly supporting Asad Umar or abusing him; or chasing the chimera of USD 300 bn salted elsewhere. No one is giving any solid suggestion and measures on actually boosting tax revenue. Yours seems to be the exception. I have some reservation about taxing qurbani ke animals, after all Pak is an Islamic country and taxing a sacred duty of every Muslim makes no sense. Else good practical suggestions backed by solid numbers.

Regards

 

[I.R.A]

Can small shops in Pakistan pay 1,000 Rupee for Monthly Pass ? Yes it can

Can Qurbani doers pay extra 10,000 Rupee Tax? Yes they can

Can People using Road Network buy a Pass to use Roads for 30 days ? Costing 100 Rupees ? Yes they can

Do people pay 6,000 rupee for 50,000 tankers daily in Karachi , yes they do we don't know who eats up all money This money can make us a DAM

Do you know this thing called passing it on to end consumers? Well it would be people who pay taxes paying these suggested taxes again. No broadening of tax base happening.

Do you know a thing called property tax? It runs into thousands in Islamabad, its charged per square feet of property and a 3200 sq ft property would attract somewhere PKR 45,000 of property tax.

Do you know your sales tax people visit most of the retail shops and collect monthly tax (bhatta basically) that goes undocumented. Do you know CDA or any other TMA doesn't allow commercial shops without any NOCs and permits ...... I hope you don't think that those NOCs and permits are FOC.

Road tax, how much does it cost travelling on motorway from Lahore to say Peshawar? Per vehicle ..... one side.

Do you know visitors to Isb old airport were taxed?

Fix the FBR, CDA, TMAs ........ prevent the leakages and stop the passing on of burden. Look around start catching people whose living style doesn't match their declared income and assets, plenty of them.

 

[El Sidd]

@Sucha Kuggu

You are 100% Correct some folks have stated to tax Phone Charges / Recharge in some form. This can be charged in some amount

• A 100 rupee charge on refill of cell phone balance would be OK should be 100% acceptable
• We need to figure out how to get that 100 rupee back from Telecom companies safely to Pakistan Federal Fund

FACT
Mobile Phone Users in Pakistan Cross 139.2 Million (70% Population have phones)

139,000,000 Million users x 100 (rupee Per Recharge Tax) = 13,900,000,000 Rupees (PER RECHARGE)

• 111 Million Dollars Brilliant idea
• How many times average Pakistani recharges their Phone card??? in 365 days I assumed 1 card update per month
• 1.3 Billion can be collected , by charging 100 rupee tax on refills

Example : Charge is Rupee 599, add 100 Rupee to this charge as Tax

Another card charging
799 Rupee , Add 100 rupee tax on it
Horrible hair by the model by the way

Here is a 1000 rupee top up , add 100 rupee tax on it
View attachment 500677

• So it seems for Pakistanis charging 600 Rupee phone cards to 1000 Rupee phone cards is not an issue

139,000,000 Million users x 100 (rupee Per Recharge Tax) = 13,900,000,000 Rupees (PER RECHARGE)

• 111,000,000 Million Dollars Brilliant idea (1 Month Charge by all Pakistani mobile users)
• 1,344,400,000 Dollar (12 Month Charge by all Pakistani users paying 100 rupee tax)

A cell phone user who pays 600 rupees , will not mind coughing up 100 rupee extra if tax is collected that way


Lets Summarize: (Current Situation)
Gain from Import / Export : +20 Billion Dollar/ - 35 Billion Dollar government focused on fixing this red number
Money we make from Income Tax : ????? This here is not working
Money we get from Remittance : +15-20 Billion Dollar / Annually


Proposed Improvements
Money we get from Proposed Tax reforms :
+21 Billion Dollar (5 year)

• QURBANI TAX : 10,000 Rupee per animal bought for Eid
• SMALL BIZZ PERMIT : 1000 Rupee per Shop/Monthly
• ROAD PERMIT (To Use Road) :100 Rupee per vehicle/Monthly
• Tanker MAFIA KILL initiative [This requires a military operation on mafia]

CELL PHONE AZADI TAX : 100 rupee per charge :
+1.3 Billion Dollars annually
About +6 Billion Dollar in 5 years


Hope our Economic team reviews these figures for some amazing ideas
All this money is hiding in lower to middle - upper class in Pakistan

This will mean civil war

 

[Nefarious]

This will mean civil war

Everything from now on will be rightly deserved. Good or bad.

 

[El Sidd]

Everything from now on will be rightly deserved. Good or bad.

Its always deserving but looting the poor for the glorification of the rich must stop.

Otherwise the poor will drag the rich to the streets and slaughter them likes its Eid and 4th of July

 

[Nefarious]

Otherwise the poor will drag the rich to the streets and slaughter them likes its Eid and 4th of July

I hope your right but easier said then done.

I seen some of these poor who might get the odd bone thrown at them by rich in return for canine type loyalty.

 

[RoadRunner401]

If they were to introduce a Tax On people that keep coming out with brilliant Ideas for Pakistan. GOP will pay off the debt in one day.

My fav!!!
Allowing Pakistani police to collect taxes from small shops and check permits, what could possibly go wrong

 

[El Sidd]

I hope your right but easier said then done.

I seen some of these poor who might get the odd bone thrown at them by rich in return for canine type loyalty.

Well thats how it will end up if the government keeps up the rhetoric of socialism while promoting the consumer society

 

[I.R.A]

Allowing Pakistani police to collect taxes from small shops and check permits, what could possibly go wrong

That is already happening, its just that its not police but other Sarkari Mulazmeen. And nothing goes wrong .... for them.

 

[Nefarious]

If they were to introduce a Tax On people that keep coming out with brilliant Ideas for Pakistan. GOP will pay off the debt in one day.

My fav!!!
Allowing Pakistani police to collect taxes from small shops and check permits, what could possibly go wrong

That's a good idea but how will that affect bribary earnings? I wouldn't trust police for any type of money collection.

 

[AZADPAKISTAN2009]

Police will only enforce permit licence valid or not , put a lock on Shop or move to next shop for review during Patrol.

Lock would be removed once the monthly Permit licence of bought next business day

Permit fees are paid online or at Bank

 

[Indus Pakistan]

** Note I made a correction in totals mid way thru writing

The Tax Net will need to Expand in Pakistan

SMALL SHOP TAX
> Small Shops ----------------> Introduce Shop Monthly Licence Permit (1,000 Rupee)

* Police Can check local businesses and check permit status by Cell phone App if no Permit a SEAL lock is put on Business till Permit is attained

• Barbershop
• Utility Shop which sells small items
• Petrol Stations
• Restaurant (Who sell breakfast, Lunch , Dinner)
• Street sellers (really smaller sellers with no shop can be exempt)
• Cell phone sellers
• Cellphone cards sellers
• Book sellers
• Textile sellers
• Real Estate Agent Permit
• Doctor Clinic Permit
• Ticket Sales agent Permit
• Milk seller
• Poultry sellers
• Tea Cafe / Coffee shops /Chai Wala Huts
• Mechanic shops
• Bread makers

• If there are 40 Million shops (40,000,000 x 1000 Rupee = 40 Billion Rupees)
• Converted to US Dollar -> 320 Million Dollar Monthly
• 1 Year Collection -> 3.8 Billion Dollars Just from small permit

> Established Shops Franchise ---------> Introduce Monthly Licence Permit (10,000 Rupees)

• McDonalds
• Pizza Hut
• Burger King
• Baskin Robins

Assume there are 5000 franchises x 10,000 = 50,000,000 Million Rupees
400,000 USD



QURBANI TAX
Introduce Qurbani Animal Sale Tax per Animal (10,000 Rupees) per animal sold
all buyers of animal for Qurbani need to register their purchase ....

10,000 Rupee Permit to Buy Animal for Slaughter (Cow, Buffalo, Camel)

5,000 Rupee Permit to Buy Animal for Slaughter (Lamb, Goat, Chicken)

Reference:
https://www.dawn.com/news/1281203

Eidul Azha, sacrificing an estimated 2.5 million cows, bulls and buffaloes

2,500,000 x 10,000 = 25,000,000,000 Billion Rupees ~ 200 Million Dollar Collected

Targets well to do Middle Class to Upper class who do their Qurbani

ROAD TAX:
3 Million people travel on average in Cities on a Road

(Install your Monthly Chip on your dash board)

Bring Road Toll Tax

• Sell Permit to Drive on Main Roads (only 100 Rupee per month)

15 Cities x 3 Million Daily travelers x 100 Rupee permit
= 4.5 Billion Rupees
= 36 Million Dollar per month
= 432 Million Dollar per year

• Bring the people into of tax net
• Taxi drivers
• Bus Drivers
• Rickshaw drivers
• Motor cycle crazy riders
• Extract money from drivers who use new roads but pay no tax

CONFISCATE WATER MAFIA MONEY:
** 50,000 Tankers make daily trip in Karachi Collect 6,000 Rupee charge

50,000 x 6,000 Rupee x 365 days = 109,500,000,000 Billion rupees or 876 Million Dollar

Use military to capture this money redirect funds to dam fund
TANKER MAFIA IS STEALING money by selling water to Pakistani and then money does not goes to state

This 100% need a Military Operation against Tanker Mafia Gangs

• 100% this money is going out of Pakistan by Hundi to UAE or international locations

SUMMARY:
A) SMALL SHOP TAX ~ 1,000 Rupee Permit for 40 million shop will give us 3,800,000,000 Billion Dollar per year

B) QURBANI TAX ~ 10,000 Rupee per animal Permit will give us 400,000,000 Million Dollars per year

C)Road Tax ~ 100 Rupee Tool Pass for Road for 30 days , applied across 15 Cities of Pakistan will give us 480,000,000 Million Dollar per year

D) 876 Million dollar captured from water Mafia

Can small shops in Pakistan pay 1,000 Rupee for Monthly Pass ? Yes it can

Can Qurbani doers pay extra 10,000 Rupee Tax? Yes they can

Can People using Road Network buy a Pass to use Roads for 30 days ? Costing 100 Rupees ? Yes they can

Do people pay 6,000 rupee for 50,000 tankers daily in Karachi , yes they do we don't know who eats up all money This money can make us a DAM


Reform Impact

• 3,800,000,000 Billion Dollar (1,000 Rupee monthly , Small Shop Permit Sale FEDERAL PERMIT)
• 400,000,000 Million Dollars (10,000 Rupee, Qurbani Animal Permit Sale FEDERAL PERMIT)
• 480,000,000 Million Dollar (100 Rupee monthly , From Road Toll Permit Sale FEDERAL PERMIT)
• 876 Million Dollar (Yearly fund captured from Water Mafia transferred to FEDERAL Account)

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6.036 Billion Dollars for Pakistan Government Yearly

5 Year Impact : 30 Billion Dollar yes equal to CPEC money

Simple reform nationally ​

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If Pakistan can reform these 4 areas we will save 6 Billion Dollar and all payments can be collected Online Channel to reduce corruption


Each Year Distribution back to Provinces

Punjab ~ 500 Million Dollar development fund (Schools / Hospitals / Parks)
Sindh ~ 500 Million Dollar development fund (Schools / Hospitals / Parks)
Baluchistan ~ 500 Million Dollar development fund (Schools / Hospitals / Parks)
KPK ~ 500 Million Dollar development fund (Schools / Hospitals / Parks)
Defence Fund ~ 500 Million Dollar
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Reserves ~ 3.5 Billion Dollars (Debt Reduction /Reserves / Buying Gold)
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Great post.