Only 900,000 people pay taxes in Pakistan: Mandviwalla

[A1Kaid]

People should be arrested and jailed for not paying income tax, that is calls tax evasion.

 

[Yogi]

Pakistan Income Tax Rate=20%

Pakistan Corporate Tax Rate=35%

Pakistan Sales Tax / VAT Rate=16%

1. Where taxable income is below Rs. 200,000 0%
2. Where the taxable income is between Rs. 200,000 - Rs. 250,000 0.50%
3. Where the taxable income is between Rs. 250,000 - Rs. 350,000 0.75%
4. Where the taxable income is between Rs. 350,000 - Rs. 400,000 1.50%
5. Where the taxable income is between Rs. 400,000 - Rs. 450,000 2.50%
6. Where the taxable income is between Rs. 450,000 - Rs. 550,000 3.50%
7. Where the taxable income is between Rs. 550,000 - Rs. 650,000 4.50%
8. Where the taxable income is between Rs. 650,000 - Rs. 750,000 6.00%
9. Where the taxable income is between Rs. 750,000 - Rs. 900,000 7.50%
10. Where the taxable income is between Rs. 900,000 - Rs. 1,050,000 9.00%
11. Where the taxable income is between Rs. 1,050,000 - Rs. 1,200,000 10.00%
12. Where the taxable income is between Rs. 1,200,000 - Rs. 1,450,000 11.00%
13. Where the taxable income is between Rs. 1,450,000 - Rs. 1,700,000 12.50%
14. Where the taxable income is between Rs. 1,700,000 - Rs. 1,950,000 14.00%
15. Where the taxable income is between Rs. 1,950,000 - Rs. 2,250,000 15.00%
16. Where the taxable income is between Rs. 2,250,000 - Rs. 2,850,000 16.00%
17. Where the taxable income is between Rs. 2,850,000 - Rs. 3,550,000 17.50%
18. Where the taxable income is between Rs. 3,550,000 - Rs. 4,550,000 18.50%
19. Where the taxable income is between Rs. 4,550,000 - Rs. 8,650,000 19.00%
20. Where the taxable income is more than Rs. 8,650,000 20.00%

This is way to lengthy n kinda stupid if u ask me, in India although the tax rate in high but the process is simple :

PKR 0 - 4 Lac 0%
PKR 4 - 10 Lac 10%
PKR 10 - 20 Lac 20%
PKR Above 20 Lac 30%

Corporate Tax Rate - 30%
If income exceed 2 Cr then 10% Surcharge for Corporates

Other than that individuals can take rebate in their taxable income ranging 2-4 Lac by investing under various scheme

Note :-
1. Ratio of INR : PKR = 1:2 for simplicity

2. 1Lac = 100,000

 

[Musalman]

In Pakistan you do not get any allowance for house rent , utilities etc. the above tax is on the gross income. In India i believe you still have allowance for house rent and utilities and your taxable income is alot less than your gross.

 

[Yogi]

In Pakistan you do not get any allowance for house rent , utilities etc. the above tax is on the gross income. In India i believe you still have allowance for house rent and utilities and your taxable income is alot less than your gross.

Your saying it the other way round the above tax rate is applicable on Taxable Income n not on Gross Income.

All type of allowances included in Gross Income, then the person can claim deduction under various section n then Taxable Income is calculated on which the aforesaid rates r applicable.

In India there r diff types of deductions available for allowances but they r subject to various conditions like almost everybody gets HRA but deduction is allowed only to those who don't have own place of residence in that city n that to subject to limits prescribed.

U can say that a person earning around PKR 6-8 lac hardly pays any tax due to various deductions...

 

[Musalman]

U can say that a person earning around PKR 6-8 lac hardly pays any tax due to various deductions...

A year or per month

 

[Spring Onion]

In Pakistan you do not get any allowance for house rent , utilities etc. the above tax is on the gross income. In India i believe you still have allowance for house rent and utilities and your taxable income is alot less than your gross.

You are wrong.

we do get such allownces all in private and as well as govt sector too

 

[Yogi]

A year or per month

Ofcourse its yearly dear, this is South Asia we r talking about, we ain't any RichiRich dude...

 

[Musalman]

You are wrong.

we do get such allownces all in private and as well as govt sector too

Beta what I wanted to asked has been understood by them. Yes there are few investment based allowances, these i was not talking about.

 

[IndoUS]

How do you fund the government yearly budget with such low number of people paying taxes (I know that taxes are only a part of the revenue), are the corporation taxed much higher compared to other surrounding nations to make up the low number of tax payers?

 

[Yogi]

How do you fund the government yearly budget with such low number of people paying taxes (I know that taxes are only a part of the revenue), are the corporation taxed much higher compared to other surrounding nations to make up the low number of tax payers?

U r asking the wrong question dear, nobody in any country wants to any taxes.

So, its not the people who r not paying the taxes rather its the Govt. who is not collecting it.

It basically depends on how effective is the tax collection system which scrutinizes the tax evasions.

The problem in Pakistan is that its run by the elites who have been evading taxes from its inception itself.

This has lead to formation of the pathetic tax collection system we see today in Pak.

N the funny part is everybody is involed in it, neither the military nor the civil Govt. has taken any step to resolve this matter...

 

[Musalman]

How do you fund the government yearly budget with such low number of people paying taxes (I know that taxes are only a part of the revenue), are the corporation taxed much higher compared to other surrounding nations to make up the low number of tax payers?

Its financed by indirect taxes especially in the energy sector plus the loans which GOP gets from banks