What area of the country pays what percentage of total tax?

[IbnAbdullah]

Salaam

Here you go. Its 2018. 2019 is still being worked on.

https://download1.fbr.gov.pk/Docs/20209181193938934TaxDirectoryAnalysisforyearended30June2018.pdf

Remind me later, and i will share with you the excel sheet, so you can work on the data easily

From a cursory glance, it seems that the total tax collection figure has a massive portion (56%) of tax collected that is from companies.

Punjab, however, has the highest number of filers by a long margin (59%in Punjab whilst the remaining 27% Sindh, 6% KPK and 2% Baluchistan and G.B).

So for instance, if Engro paid a certain amount of tax, would that ve counted as tax collected from Sindh because the head office is in Sindh? Or does it take into account the massive revenue generated from fertilizer sale in Punjab as tax from Punjab?


However, more importantly, if tax collected is higher from Sindh and/or Punjab, should Baluchistan and KPK and GB be given lesser power somehow?

What exactly is being hinted at when issues of who pays more tax are brought up? Especially, when such is done without proper in depth analysis?

 

[Morpheus]

Salaam





From a cursory glance, it seems that the total tax collection figure has a massive portion (56%) of tax collected that is from companies.

Punjab, however, has the highest number of filers by a long margin (59%in Punjab whilst the remaining 27% Sindh, 6% KPK and 2% Baluchistan and G.B).

So for instance, if Engro paid a certain amount of tax, would that ve counted as tax collected from Sindh because the head office is in Sindh? Or does it take into account the massive revenue generated from fertilizer sale in Punjab as tax from Punjab?


However, more importantly, if tax collected is higher from Sindh and/or Punjab, should Baluchistan and KPK and GB be given lesser power somehow?

What exactly is being hinted at when issues of who pays more tax are brought up? Especially, when such is done without proper in depth analysis?

OK so here are some points:

Sindh has the highest tax collection, this is despite the fact, it only accounts for just over 1/4 of the filers

Majority of filers (individuals/companies) pay zero tax, cause there earnings falls in the zero tax slab

If you look at the break down of city, the list goes as follow (highest paying tax first)

KARACHI
ISLAMABAD
LAHORE
KARACHI SOUTH
RAWALPINDI
KARACHI EAST
MALIR
KARACHI WEST
FAISALABAD
LAHORE CITY

Even Islamabad, which has a population of just over 1 million is paying more taxes then Lahore.

Now here is the main issue. When you go to file your taxes, you can put whatever you want. There was (still is too some extent today) nobody checking the data. So people would be earning millions, but when they go to file their taxes, they declare much less. This is what Shabbar was talking about as well. There was no way to verify the data.

This is the broken tax system we have. With nothing digital or centralized, its very easy to hide your wealth from the tax authority. This is also why people and companies are making the most noise when reforms are being done to FBR and in general the tax system.

Here is the excel file. Feel free to sort through the data

 

[Zibago]

This will help

https://twitter.com/x/status/1308495491265630208

In Punjab and also in Karachi underfiling is the norm that is why tajir biradri supports noon league

If tax system is reformed we could easily triple our collection

 

[nahtanbob]

Salaam


I've seen this issue brought up multiple times here and I'm still not sure who has the right figures and what is supposed to be meant by it.

Does Punjab pay more tax or Sindh? Does Lahore pay less tax than Karachi adjusted for population?

What if it is one way or the other? What does it mean?














So which of these is correct?

I see nothing ultra-productive about Karachi. It is more like the taxes paid by Pakistani citizens are collected in Karachi

 

[W.11]

It is more like the taxes paid by Pakistani citizens are collected in Karachi

How does karachi collect taxes from the rest of the country?

regards

 

[W.11]

So for instance, if Engro paid a certain amount of tax, would that ve counted as tax collected from Sindh because the head office is in Sindh? Or does it take into account the massive revenue generated from fertilizer sale in Punjab as tax from Punjab?

What abut honda sales in sindh, if engro collects punjab taxes as sindh, it also goes for taxes collected from sindh by companies based in Punjab.

regards

 

[nahtanbob]

How does karachi collect taxes from the rest of the country?

regards

Disclaimer: I am not knowledgable about intricacies of the tax system in Pakistan

I am taking a wild guess here. If a tax is levied at the port of import as opposed to the port of sale it will shown up in Karachi's numbers as opposed to the real entity that paid the tax

 

[W.11]

Disclaimer: I am not knowledgable about intricacies of the tax system in Pakistan

I am taking a wild guess here. If a tax is levied at the port of import as opposed to the port of sale it will shown up in Karachi's numbers as opposed to the real entity that paid the tax

port is every where, wahgah is also a port, if Karach company imports goods from wahgah it will be taxed at wahgah.

lets take an example of central asian landlocked states, do they get entitled for port import/export taxes levied by other country's harbour they use their ports? does afghanstan get entitled for the port duty levied from pakistan? same goes for karachi as well.

The curious thing is, Fed govt which is Punjab based has tried creating mischief like 'dry ports' so custom duty is levied at respective cities like sialkot, faisalabad and not karachi, so Punjab has tried circumventing import/export duties as well.

regards

 

[IbnAbdullah]

Salaam

What abut honda sales in sindh, if engro collects punjab taxes as sindh, it also goes for taxes collected from sindh by companies based in Punjab.

regards

Agreed. It would come down to how many corporations are based in which area.

Basically it would require an in-depth analysis of the situation to properly guage the situation.

 

[nahtanbob]

port is every where, wahgah is also a port, if Karach company imports goods from wahgah it will be taxed at wahgah.

karachi is the main port of pakistan. am i missing something ?

 

[Kambojaric]

karachi is the main port of pakistan. am i missing something ?

By far yes. For example the Wagah comparison makes no sense since even when Pakistan-India trade was somewhat smoother in 2014 the total volume handled there was around 2.5 million (Page 4 http://www.cuts-citee.org/pdf/CUTS_Case_Story_on_Trade_Faciltiation.pdf). Since 2014 trade between the two countries has almost halved (https://nation.com.pk/31-May-2018/pak-india-trade-through-wagah-border-slows-down) so it would make sense that trade coming via Wagah has at least been halved as well and likely further decreased even more given the existence of the Dubai route. I could not find any more recent data on trade via that border.

Karachi port on the other hand handles a volume of 50 million plus (https://www.dawn.com/news/1343425/record-volume-of-cargo-handled-at-karachi-port)

 

[peagle]

port is every where, wahgah is also a port, if Karach company imports goods from wahgah it will be taxed at wahgah.

lets take an example of central asian landlocked states, do they get entitled for port import/export taxes levied by other country's harbour they use their ports? does afghanstan get entitled for the port duty levied from pakistan? same goes for karachi as well.

The curious thing is, Fed govt which is Punjab based has tried creating mischief like 'dry ports' so custom duty is levied at respective cities like sialkot, faisalabad and not karachi, so Punjab has tried circumventing import/export duties as well.

regards

That's not how it works, you are seriously mistaken.

Ports are only based along the coastline, a dry port is not a border location, but a trade transportation hub, to help the trade process, otherwise everyone would have to take their goods to the port. By having a dry port, you make things easier for exporters and importers, dry ports are built according to demand, not politics. It is not possible to manage a modern economy without dry port terminals.

Border points are not called ports, they can be called border terminals. That has not much value for Pakistan, because the level of trade across borders is very minimal for Pakistan, almost all our trade happens via oceans. Pakistan does not levy any extra taxes on Afghanistan for using Pakistani facilities, it may be stupid, but that's how it is.

And, federal government is not Punjab based, it is based in the capital territory, which is located on the borders of Punjab, KPK and Azad Kashmir. Come on, please get something right.


@nahtanbob

 

[Jungibaaz]

I have heard so many misguided Karachi folks bandwaggoning the government’s call to repeal the 18th amendment, as if it’s somehow the bane of their collective existence. What’s needed is an expansion of it, more devolution, cities and regions that pay more taxes ought to be able to keep a larger share of them and administer revenues locally.

18th amendment aspires for further devolution and calls for a process. Expand upon Art. 140A and do what many of us having been calling for since the last few years especially.

 

[ziaulislam]

Salaam


I've seen this issue brought up multiple times here and I'm still not sure who has the right figures and what is supposed to be meant by it.

Does Punjab pay more tax or Sindh? Does Lahore pay less tax than Karachi adjusted for population?

What if it is one way or the other? What does it mean?














So which of these is correct?

No

All comapnies are registered in karachi as its a port city

However karachi population is under counted

If NADRA has 2 crore 40 lac address at karachi how is the population counted as under 1 crore 70 lac
Couting in pakistan is USELESS EXCERCISE WHY???

Because we only count legal people(other countries like USA count EVERYONE)

So why count legal people why not just look at legal documents you have with NADRA???

 

[W.11]

By far yes. For example the Wagah comparison makes no sense since even when Pakistan-India trade was somewhat smoother in 2014 the total volume handled there was around 2.5 million (Page 4 http://www.cuts-citee.org/pdf/CUTS_Case_Story_on_Trade_Faciltiation.pdf). Since 2014 trade between the two countries has almost halved (https://nation.com.pk/31-May-2018/pak-india-trade-through-wagah-border-slows-down) so it would make sense that trade coming via Wagah has at least been halved as well and likely further decreased even more given the existence of the Dubai route. I could not find any more recent data on trade via that border.

Karachi port on the other hand handles a volume of 50 million plus (https://www.dawn.com/news/1343425/record-volume-of-cargo-handled-at-karachi-port)

It doesn't matter what ever the volume is, im simply stating that port is just like a border, and trades happen through maritime or by land. custum duty is paid whether its shipped via land or via sea port.

All comapnies are registered in karachi as its a port city

so is newyork, so is mumbai, san francesco are you trying to say that Karachi is the financial hub solely because it has a port?

regards