yesboss
FULL MEMBER
- Joined
- Sep 23, 2007
- Messages
- 420
- Reaction score
- 0
- Country
- Location
@Horus I refuse to accept these charts prepared by people sat in new York or London. I would love somebody to explain to me few things. I am not a economist but I don't need to be psychologist to know when somebody is happy and when they are sad.
My point. Raft of reports show that there is less of extreme "bone" poverty in Pakistan then India. I was in Pakistan recently and there are cars, shops are full. House prices are ridicalous there is fast food joints on every corner. Bottom line there seems to be lots of cash floating around. A friend told me Karachi keeps getting illegal economic migrants from all over including India and Bangladesh.
Now we already know Pakistan has one of the lowest registered tax payers in the world. There is no doubt about this. Everybody knows that Pakistan is world leader in non paying tax payers. Now this means that minimal amount of the economy is recored because if it was then it would be taxed. So I ask this simple question. If people don't pay tax and it therefore is not recorded how the hell do the figures drawn by suits sitting in New York make any sense?
Let us take the case of Balochistan or FATA. I bet there are less than dozen tax payers in this huge tract of the country. However we know although these areas are poor but evidently most people there are better fed than the extreme poor of India.
So can somebody please tell me about these figures. Are these based on the fraudulent records kept by our federal government according to which only 100,000 Pakistan's are liable for tax or do they honestly reflect the reality on the ground?
Because I don't think what I read matches what I see and observe.
You may know about the recent "withholding tax" rate of 0.6% on banking transactions of more than Rs. 50,000 for non-filers(non-tax payers). It is being done to to bring into account the hidden economy and make people pay their taxes who are running huge businesses but either are not showing their true income or haven't even registered themselves as tax payers.To avoid this tax they have to show there true income or register themselves and pay their tax or pay the withholding tax. If gets done it would bring in account for much of the hidden economy . . . but traders are carrying on with there shutter downs and dharna's and withdrawing there money from banks and using other means of transactions (which won't work in the long run though i guess). But govt also need to bring the income-tax rates down given the energy crisis, other form of taxes and the overall poor condition for running businesses, govt should lure the non-tax payers.