What's new

IT companies relocating as Pakistan gets tax-hungry

So per your logic. the country should remain like a Jungle right? Where everyone with power is like a lion, and can evade all laws, Taxes and everything else that a country needs to grow!!!! Or, they can come to the US and pay about $ 35% tax, both in personal and corporate income :enjoy:

Just so you know, when I started my first company many years ago, I paid 34% of taxes on my FIRST year of business!!!! This is just income tax, not including my property and capital gains. If you add that up, I paid about 54% of all my income that year in taxes!! And this is the US. The point is, to keep the US economically and socially and defense wise stronger, we ALL pay our share. And its not easy but you do it because you follow a system. I share my own examples, not to show off, but to tell you guys that a democratic system is THE most important thing for a society. Once its established, it'll take care of you. So let a tax base economy setup first.

As much as you and I have had our differences, I have to agree with you. But the resentment among Pakistanis is understandable. In the US when you pay your corporate taxes, you get a lot in return. Whether it's the protection of your intellectual property with the patent laws or ease of just doing business. And even starting a business, it takes just what 2 hours to start a business by just going to the local state controller office and getting the tax number.

In Pakistan unless you grease the palm of numerous officials you'll never be permitted to legally function. Combine that with the resentment that the billionaires pay just 5,000 rupees in taxes while wielding the influence of the State to harass opponents. The ability to go to NYC for a "routine" medical check up, own property worth millions in the urban centers of London or Paris. While the common man pays 100 rupees for a phone card which only gets the value of what 75 rupees? Can't get his children a quality education necessary for the 21st century. Or even the right to receive medical attention at a hospital until they can pass over wads of cash.

Taxation is a State's given right to collect. But only when everyone is playing by the same rules. This same resentment is in the US now. Corporations selling themselves to their subsidiaries registered in Canada or in EU so they dont pay corporate taxes in the US, while enjoying the powers the US laws give them. The Pentagon paying for the fuel of private jets owned by CEOs of Silicon valley.

The State isn't prefect not by any standards of measurement. But the ability to address change is what makes Democracy great, and that Democracy is missing in Pakistan where politicians buy votes for a mere 1,000 rupees. Sometimes even threatening their fiefdom peasants to vote for anyone other than the noble's selection. Democracy of what is present in the US now isn't what is was originally. Only the rich land-owning men could vote, then men in general could (as long as they could read), then women, African-Americans who could jump through the laws that prevented them from voting, then naturalized citizens, then ..... then....

That is what might be required in Pakistan. A person with the cognitive ability to understand the implications of his/her vote.
 
.
What kind of a government puts taxes of 8% on revenues. This is absolutely retarded and will cause most of the companies to fold up their operations lol. I can make better tax laws than this hahaha
 
.
As much as you and I have had our differences, I have to agree with you. But the resentment among Pakistanis is understandable. In the US when you pay your corporate taxes, you get a lot in return. Whether it's the protection of your intellectual property with the patent laws or ease of just doing business. And even starting a business, it takes just what 2 hours to start a business by just going to the local state controller office and getting the tax number.

In Pakistan unless you grease the palm of numerous officials you'll never be permitted to legally function. Combine that with the resentment that the billionaires pay just 5,000 rupees in taxes while wielding the influence of the State to harass opponents. The ability to go to NYC for a "routine" medical check up, own property worth millions in the urban centers of London or Paris. While the common man pays 100 rupees for a phone card which only gets the value of what 75 rupees? Can't get his children a quality education necessary for the 21st century. Or even the right to receive medical attention at a hospital until they can pass over wads of cash.

Taxation is a State's given right to collect. But only when everyone is playing by the same rules. This same resentment is in the US now. Corporations selling themselves to their subsidiaries registered in Canada or in EU so they dont pay corporate taxes in the US, while enjoying the powers the US laws give them. The Pentagon paying for the fuel of private jets owned by CEOs of Silicon valley.

The State isn't prefect not by any standards of measurement. But the ability to address change is what makes Democracy great, and that Democracy is missing in Pakistan where politicians buy votes for a mere 1,000 rupees. Sometimes even threatening their fiefdom peasants to vote for anyone other than the noble's selection. Democracy of what is present in the US now isn't what is was originally. Only the rich land-owning men could vote, then men in general could (as long as they could read), then women, African-Americans who could jump through the laws that prevented them from voting, then naturalized citizens, then ..... then....

That is what might be required in Pakistan. A person with the cognitive ability to understand the implications of his/her vote.

You are mixing too many things in here. Some of your logic is valid, and some doesn't hold water.

1) The Pakistanis have resentment because a SYSTEM was never allowed to be setup by people who ruled through power. So in the absence of it, the country became the jungle with jungle rules. Whoever has the most money and them might can rule like a lion. So when a system never existed, when media wasn't open and liberal enough to report whatever it finds in terms of corruption, etc, when people didn't even know they deserved better jobs, healthcare, basic facilities like Metro buses with cheaper transportation......how do you expect that system to work? Of course people will be paying a lot of bribe because there was no system with checks and balances.

2) While we talk about the "resentment" you also have to understand that there have been three elections since 2012, from the top level down to the basics. And in each, people have picked the current leaders (minus the ethnic card states). ALL trade and commerce indicators show a bullish economy for Pakistan. The Western economic houses are counting Pakistan's stock market's returns and its in the top 5. The Chinese, the Russians, the Americans and the British either have, or are about to pour billions into the system. So a SYSTEM was needed to fix these issues.

3) The billionaires abusing money, I assume you are referring to the current government in Pakistan?? You have to give me an example of it that an "absolute fact". I don't go with gossip. And if there are facts available, how come the opposition hadn't taken them to the court? There are insane hawks in the opposition and both you and I know it. So unless there are material proofs, I don't want to get into gossip.

4) By the way, don't forget, the SAME billionaires in power, have transformed Pakistan and and a new Pakistan has been born since 2013. The proof is in the market, economic expansion, profits, investments, etc, etc!!

5) There has always been resentment against Taxes in the US. I, personally, like most Republicans, don't like too much taxes and agree with the fact that a standard percentage like many running for the office have proposed, would be better. But while we may think the taxes are too high, we still PAY them. We are not a nation of 1% tax payers and having issues with the tax structure :rofl:.

6) The value of money, the Healthcare, Education, and all.....I know you follow IK, but let's face it. How is IK going to fix this mess? He doesn't have any agenda or even common business sense. And I mean it, the guy isn't business oriented and this isn't because I hate him. He's a good hearted guy but not a good leader. Anyone else will ALSO need taxes to run a country with so much population and literally a working tax based system. Angry men sound good for movies. Not for leadership, politics and setting up direction for a country. Those who do this serious business, and are used to it, do these things in all situations, whether opposition, sit-ins, earth quakes or military operations. If the current government just wanted to make corruption related money, they didn't have to start ONE project. They'd do what Zardari did, which is, do nothing and make $$$$ and go. And probably still come back 5 years after based on the vote bank.

But the amount of work being done, hasn't happened in all 70 years combined!!!! So SOMEONE wants good things for their country so you guys should wait democratically and let those good things start to come. Again, angry men can ONLY talk, not deliver. People who criticize everything, are called critics. Not leaders. Leaders face opposition and keep making progress, no matter what!!!!

The BASICS to solve Pakistan's issues lie in her people's ability to willing to respect their country and pay taxes. Once a tax based country starts to exist, within a few years, these issues will start to go away.
 
.
All credit to Mr. Dollar Dar..

@Muhammad Omar @cb4 @Tameem @Fracker @Viper0011.





And they are dreaming of making Pakistan the next IT hub in the world. Yet another policy of PML-N that is hurting Pakistan badly, and helping India..
Pray tell me sirji, how it is going to help India? for god sake you are at least a decade or two behind us when it comes to IT, tax or no tax you are not going to come close anytime soon
 
.
Too much taxing on any sector will kill instantly.....Bad news for pakistan....Taxes should be in competitive with neighbours...otherwise should be sucidal for any industry
 
.
turkey-corporate-tax-rate.png


pakistan-corporate-tax-rate.png

china-corporate-tax-rate.png

india-corporate-tax-rate.png
 
.
So per your logic. the country should remain like a Jungle right? Where everyone with power is like a lion, and can evade all laws, Taxes and everything else that a country needs to grow!!!! Or, they can come to the US and pay about $ 35% tax, both in personal and corporate income :enjoy:

These companies "leaving Pakistan" will be eaten alive by their competitors in India :enjoy:. I can guarantee it without even thinking twice. When people become so focused on making money that they forget their national obligations about paying Taxes, sharing wealth with their poor, and giving back to the society, those people aren't helping their country or the nation. They are simply money hungry bast*ards who've stolen billions from the nation's taxes every year and when now comes the time to pay taxes, they want to leave.

These threads you open, are useless and they don't promote nationalism and common sense. In the US, billions of dollar are donated by the rich to schools, hospitals, research and all. I don't think majority of the Pakistanis even do 5% of their income for better good outside of traditional religion donors. This thread here, is a prime example of it!!!!!
And they will leave dubai is a place where many Pakistani companies are relocating
Well i dont know about other places but in Islamabad you pay taxes of about 2.5% on every product you purchase you cant escape them and on some products taxes are outrageous(50+%)
The gov earns more from.indirect taxes than direct one,s
 
.
And they will leave dubai is a place where many Pakistani companies are relocating
Well i dont know about other places but in Islamabad you pay taxes of about 2.5% on every product you purchase you cant escape them and on some products taxes are outrageous(50+%) The gov earns more from.indirect taxes than direct one,s


That's called the SALES tax, the US average states charge 6-7% on EVERY product. Some like buying cars will have other State, County and City taxes attached to those too. 2+% is very low for any country above a certain income bracket!!

Also, relocating to Dubai is temporary. Watch the next three years, when the tax base is setup, Pakistan will become a tax free zone for certain businesses. Dubai will be a few numbers below Pakistan in the next ten years or so. Its just a fact. So these "leaving" will come back in due time :enjoy: and will pay taxes. The labor they can find in Pakistan, is like 5 times more expensive in Dubai :rofl:. Easy to make political scary statement then actually getting these things done at a profit :cheers:
 
.
That's called the SALES tax, the US average states charge 6-7% on EVERY product. Some like buying cars will have other State, County and City taxes attached to those too. 2+% is very low for any country above a certain income bracket!!

Also, relocating to Dubai is temporary. Watch the next three years, when the tax base is setup, Pakistan will become a tax free zone for certain businesses. Dubai will be a few numbers below Pakistan in the next ten years or so. Its just a fact. So these "leaving" will come back in due time :enjoy: and will pay taxes. The labor they can find in Pakistan, is like 5 times more expensive in Dubai :rofl:. Easy to make political scary statement then actually getting these things done at a profit :cheers:
Eh its low majority of products in Pakistan are more pricier than in India because of high taxes and dont compare Pakistan to USA income levels are way higher in US
Did the Pakistani bussiness men who migrated to Bangladesh after crippling energy crisis and high input cost return?
Stop comparing Pakistan to USA our income levels are way less we have am issue of increasing malnutrition and poverty which USA doesnot face
 
.
You all need to relax. When the article talks about companies going "overseas" it just means their being registered in Dubai rather than in Pakistan. The workforce remains in Pakistan because lets face it UAE isn't going to give visas for Pakistanis to work in Pakistani owned IT companies registered in UAE.
Why not?
Indian companies wherever they may be globally, they still transfer Indians from India to those offices when needed. A pre-requisite for that is the host country giving visas for Indian professionals.Thousands of such cases are there each year. It happens easily.

Same for Pakistan. The company can transfer employees from Pakistan office to Dubai office.
 
.
If the GOP provides the required infrastructure to IT Companies and there is constant supply of educated and talented man power, I don't see Tax could be the reason for IT companies to fly away from Pakistan....Pakistan like India is still very competitive in terms of cost of labor and I can bet, those want to relocate to UAE for cost cutting would actually end up having more operational cost over there!

May be just a trick to pressurize GOP and gain more profits from business! I call such companies as opportunistic and selfish with no respect towards CSR!
 
.
You are mixing too many things in here. Some of your logic is valid, and some doesn't hold water.

1. There was and is a system, but one eroded away by corruption. Permitted by a complacent population more interested in losing half of a nation than promoting nationalism.

2. Bullish due to optimism that SOEs would be privatized. The entire stock market is based on speculation. Investors are speculation Pakistan would be able to correct it's messed up priorities. Especially with the pressure from China to include Gilgit-Baltistan as a province. Perhaps ending the Kashmir issue.

The investments into Pakistan are just loans. Lets call them what they are. A massive stimulus paid for by China. For Chinese products built by Chinese citizens.

3. Even with evidence the excuse of "political conspiracy" will remain.

4. We'll see how long it lasts.

5. Agree.

6. IK is a lost cause. I admitted it right after the debacle of Dharna. A good leader has men and women who know their fields like the back of their hand as advisers. I've given the PLMN as chance, but priorities just aren't lining up. Billions spent on projects that are losing public appeal of use. Lack of law and order in the civilian sphere.

Removal of "Ghost" government servants from salary payments but still no convictions on who drew the salaries.

Guess i'm just asking for too much too soon. In 20 years i'll be more than happy to admit perhaps Nawaz was the hero Pakistan needed and deserved, but now it's too soon.
 
.
Back
Top Bottom