Income tax: What the salaried class will pay now

[313ghazi]

In UK you get a lot of services from the state

Yep absolutely. People are worried about what the future holds but at the moment you get free education (up to university level), free healthcare, aging but reasonably good infrastructure, law enforcement, pensions etc. It's not upto the standards it used to be, so people will complain, but it's still good value for money, especially the health service.

 

[Chak Bamu]

One can see clear dichotomy between people who live in Pakistan and those who live outside. Obviously people living outside of Pakistan have an opinion, but its not relevant to the ground realities.

These days I stay away from politics and economy sections. PDF is a nest of PTI supporters and the trouble one has to go to explain their folly is not worth the results. PTI government is providing free post-election education to its voters. Post-budget many have been wondering aloud about their choice in GE 2018.

As the grim realities set-in, I derive no pleasure from saying "I told you so" to my friends and family. Its going to get worse as corporations / businesses shed employees to slash expenses. Pakistan has proven to be an unstable and poor destination for FDI. Therefore, until some wealthy nation really needs Pakistan's services, there is little hope for improvement. I say this because the chances of real reforms are low. Those in power have no reason to make real reforms that would stick. PTI's government was installed by our Deep State and I can see that powers-that-be need not worry for their budgets & perks. So, apart from extracting more taxes from the usual channels, nothing else can or would be done.

For all those who would rather blame the last government, please study economics - especially Keynesian economics. For further study, read about attractive investment destinations and think if Pakistan would ever be one. If there is some free time - some of those who live and earn in Pakistan would be out of a job in the next two years and hence may have a lot of time on their hands - please study political science and Pakistan's constitution.

 

[Beethoven]

One can see clear dichotomy between people who live in Pakistan and those who live outside. Obviously people living outside of Pakistan have an opinion, but its not relevant to the ground realities.

These days I stay away from politics and economy sections. PDF is a nest of PTI supporters and the trouble one has to go to explain their folly is not worth the results. PTI government is providing free post-election education to its voters. Post-budget many have been wondering aloud about their choice in GE 2018.

As the grim realities set-in, I derive no pleasure from saying "I told you so" to my friends and family. Its going to get worse as corporations / businesses shed employees to slash expenses. Pakistan has proven to be an unstable and poor destination for FDI. Therefore, until some wealthy nation really needs Pakistan's services, there is little hope for improvement. I say this because the chances of real reforms are low. Those in power have no reason to make real reforms that would stick. PTI's government was installed by our Deep State and I can see that powers-that-be need not worry for their budgets & perks. So, apart from extracting more taxes from the usual channels, nothing else can or would be done.

For all those who would rather blame the last government, please study economics - especially Keynesian economics. For further study, read about attractive investment destinations and think if Pakistan would ever be one. If there is some free time - some of those who live and earn in Pakistan would be out of a job in the next two years and hence may have a lot of time on their hands - please study political science and Pakistan's constitution.

Wonderful analysis sir...couldnt agree with you more on this but then the question is how long would you be able to survive until finally the system collapses because things cannot be sustained the way they are now....

 

[nahtanbob]

Wonderful analysis sir...couldnt agree with you more on this but then the question is how long would you be able to survive until finally the system collapses because things cannot be sustained the way they are now....

thank to your nukes the system will not "collapse" overnight. you are stuck with the economic mess for a few decades until you collapse under weight of the population or climate change

 

[VCheng]

One can see clear dichotomy between people who live in Pakistan and those who live outside. Obviously people living outside of Pakistan have an opinion, but its not relevant to the ground realities.

These days I stay away from politics and economy sections. PDF is a nest of PTI supporters and the trouble one has to go to explain their folly is not worth the results. PTI government is providing free post-election education to its voters. Post-budget many have been wondering aloud about their choice in GE 2018.

As the grim realities set-in, I derive no pleasure from saying "I told you so" to my friends and family. Its going to get worse as corporations / businesses shed employees to slash expenses. Pakistan has proven to be an unstable and poor destination for FDI. Therefore, until some wealthy nation really needs Pakistan's services, there is little hope for improvement. I say this because the chances of real reforms are low. Those in power have no reason to make real reforms that would stick. PTI's government was installed by our Deep State and I can see that powers-that-be need not worry for their budgets & perks. So, apart from extracting more taxes from the usual channels, nothing else can or would be done.

For all those who would rather blame the last government, please study economics - especially Keynesian economics. For further study, read about attractive investment destinations and think if Pakistan would ever be one. If there is some free time - some of those who live and earn in Pakistan would be out of a job in the next two years and hence may have a lot of time on their hands - please study political science and Pakistan's constitution.

Thank you for that post.

I continue to take a lot of flack here on PDF for not towing the prescribed lines, but I did tell them so. And will continue to do so.

Some people just like to learn things the hard way.

PTI's government was installed by our Deep State and I can see that powers-that-be need not worry for their budgets & perks. So, apart from extracting more taxes from the usual channels, nothing else can or would be done.

Summary:

Naya Pakistan = Purana Pakistan.

 

[313ghazi]

One can see clear dichotomy between people who live in Pakistan and those who live outside. Obviously people living outside of Pakistan have an opinion, but its not relevant to the ground realities.

These days I stay away from politics and economy sections. PDF is a nest of PTI supporters and the trouble one has to go to explain their folly is not worth the results. PTI government is providing free post-election education to its voters. Post-budget many have been wondering aloud about their choice in GE 2018.

As the grim realities set-in, I derive no pleasure from saying "I told you so" to my friends and family. Its going to get worse as corporations / businesses shed employees to slash expenses. Pakistan has proven to be an unstable and poor destination for FDI. Therefore, until some wealthy nation really needs Pakistan's services, there is little hope for improvement. I say this because the chances of real reforms are low. Those in power have no reason to make real reforms that would stick. PTI's government was installed by our Deep State and I can see that powers-that-be need not worry for their budgets & perks. So, apart from extracting more taxes from the usual channels, nothing else can or would be done.

For all those who would rather blame the last government, please study economics - especially Keynesian economics. For further study, read about attractive investment destinations and think if Pakistan would ever be one. If there is some free time - some of those who live and earn in Pakistan would be out of a job in the next two years and hence may have a lot of time on their hands - please study political science and Pakistan's constitution.

You're right, there is a difference between the opinions of those who live in Pakistan and those who live outside. As a person who doesn't live in Pakistan, the steps taken in this budget seem normal to me. I don't live in an environment where i get subsidies on everything and pay next to no taxes for the privilege. I also see funds available to help launch tech startups, a decrease in corporation tax and a commitment to continue to decrease that rate by 1% a year until 2023. I also as a foreign investor see an economy where my pound buys a lot of rupees, so setting up my business there could be cheaper than elsewhere. There is a reduced rate for small companies and at least 9 SEZ's are being developed across the country which will be tax free, at least for a while.

I could be wrong of course, I'm not an economic expert by any stretch of the imagination. I like to see myself as glass half full.

 

[Rusty]

I would also like to point out that Pakistan's largest export is expat Pakistanis. We send home billions of dollars a year.

People can begrudge us all they want, but we are the reason they are not living like Afghanistan right now.

 

[313ghazi]

I would also like to point out that Pakistan's largest export is expat Pakistanis. We send home billions of dollars a year.

People can begrudge us all they want, but we are the reason they are not living like Afghanistan right now.

That's not quite right. Expats are the reason the families of expats aren't living like Afghans. It's true there is a trickle down in the sense that our families who we support then engage in the economy, but realistically it's supporting them. It's unfortunate so many people have travel to foreign lands to find opportunities to support them.

I'd actually like to hear the opinions of people who've lived abroad and then migrated back to Pakistan and are there now. What do they think? They have seen both sides of the picture.

 

[VCheng]

I'd actually like to hear the opinions of people who've lived abroad and then migrated back to Pakistan and are there now. What do they think? They have seen both sides of the picture.

That would make a whole new thread I think.

 

[Rusty]

That's not quite right. Expats are the reason the families of expats aren't living like Afghans. It's true there is a trickle down in the sense that our families who we support then engage in the economy, but realistically it's supporting them. It's unfortunate so many people have travel to foreign lands to find opportunities to support them.

I'd actually like to hear the opinions of people who've lived abroad and then migrated back to Pakistan and are there now. What do they think? They have seen both sides of the picture.

while I was being a bit sarcastic but we really are the number 1 source of USD in Pakistan. With that money Pakistanis are able to buy products which supports industries which then employees people.

We are an extremely important cog in the machine.

Also, I have personally seen the kinds of Scarifies expat Pakistanis have made. My family even met Pakistani taxi driver in Argentina when they went there for vacation.

 

[313ghazi]

while I was being a bit sarcastic but we really are the number 1 source of USD in Pakistan. With that money Pakistanis are able to buy products which supports industries which then employees people.

We are an extremely important cog in the machine.

Also, I have personally seen the kinds of Scarifies expat Pakistanis have made. My family even met Pakistani taxi driver in Argentina when they went there for vacation.

Yeah bro, could talk all day long about such examples from AJK. Our politicians are the worst of the bunch and our people especially backwards. multiple generations only have 1 real means of income - earn enough money to get a work visa abroad.

 

[zn426]

One can see clear dichotomy between people who live in Pakistan and those who live outside. Obviously people living outside of Pakistan have an opinion, but its not relevant to the ground realities.

These days I stay away from politics and economy sections. PDF is a nest of PTI supporters and the trouble one has to go to explain their folly is not worth the results. PTI government is providing free post-election education to its voters. Post-budget many have been wondering aloud about their choice in GE 2018.

As the grim realities set-in, I derive no pleasure from saying "I told you so" to my friends and family. Its going to get worse as corporations / businesses shed employees to slash expenses. Pakistan has proven to be an unstable and poor destination for FDI. Therefore, until some wealthy nation really needs Pakistan's services, there is little hope for improvement. I say this because the chances of real reforms are low. Those in power have no reason to make real reforms that would stick. PTI's government was installed by our Deep State and I can see that powers-that-be need not worry for their budgets & perks. So, apart from extracting more taxes from the usual channels, nothing else can or would be done.

For all those who would rather blame the last government, please study economics - especially Keynesian economics. For further study, read about attractive investment destinations and think if Pakistan would ever be one. If there is some free time - some of those who live and earn in Pakistan would be out of a job in the next two years and hence may have a lot of time on their hands - please study political science and Pakistan's constitution.

The best countries aren't those that rely on outside help, but those that create their own chances. Sometimes, as you do in cricket, you have to create your own shot and your own niche. Keynesian economics is an utter waste of time, the only reason it worked was because America wanted trading partners for their export-based economy and the US lasts today because of the concentration of capital and professional services in the United States. China and Japan ascended as economies because they keep producing things, and keep exporting.

Pakistan can certainly be an attractive investment destination, but like Japan did in the 1950s there has to be a focus on reducing graft and getting products and services out. I'm certain there's plenty would like to invest in a destination with professional services, good natural resources and manufacturing production opportunities, and a government who is business friendly. I'm also certain that no one would like to invest in a country without professionalism, heavy government corruption, and an inability to create opportunities for business growth.

 

[Wa Muhammada]

this is a classic poster child IMF budget.

salaried class , screwed

textile sector, screwed, zero rated regime taken away

too much capital controls given to fbr, 50lac property monitoring

nothing else changed from last budget

cars more expensive than ever. and imported cars are banned so i have no cheaper options

i will move to crypto currencies completely now

The automobile policy is messed up - the govt should at least regulate local carmarkers like Toyota Indus, Honda Atlas & Suzuki in terms of quality control....we need to facilitate foreign carmakers to set up shop here, make it easier for them...but at the same time carmakers like Kia have launched new models which have not won much appreciation from the Pakistani awaam

 

[Shah01]

Having said that, the tax rates are very reasonable. In the UK the base rate is 20% of salary, plus an additional 12% specifically for healthcare and pensions.

On top of that we pay duty in cigarettes, alcohol, fuel. We also pay sales tax on everything at 20% apart from on kids clothes, books and motorcycle helmets.

You forgot the council tax, TV tax and so on.

is the quality of our education and health facilities similar to theirs?

Please understand that most of the money spent on education, health and pensions are collected as a separate tax. Council tax takes care of the street cleaning, garbage collection, school funding (most of it) and other community needs. NI (national Insurance - £137 billion collected) takes care of the Health system (NHS) and the pensions paid after the age of 65 at the moment which will go up to 68 in the coming years. So in short nothing is free. And this money is not even the tax money which is totally separate which @313ghazi mentioned above. The tax rate also goes up to 40% and 45% for the rich.... I don't have time to compare the two sides in detail right now. You know NHS budget is above £120 billion which is more than Pakistan's total tax collection (around £30 billion). NHS only serves around 63 million people. On the other hand Pakistan has to cater for around 210 million (it will require 3 times the funding of NHS to provide the type of facilities we have in UK). When you pay as much tax as people do in UK and don't get the services back then complain about it.... Please enlighten yourself to the figures below:
https://assets.publishing.service.g...e/802999/Apr19_Receipts_NS_Bulletin_Final.pdf

 

[Wa Muhammada]

In UK you get a lot of services from the state

But even there govt funds are getting stretched ...GP’s & hospitals have a long waiting time ... Tory govts economic policy is devoid of ideas

I’v heard great things abt Scandinavian countries and of Germany and how they give their citizens great services - would be interesting to hear from Pakistanis living there