Pakistan's Growing Tax Base: Impact on my family's Textile Business.

[Meengla]

Just thought to narrate a personal account here to illustrate the impact of the current govt's initiatives to regularize and re-structure Pakistan's economy with a particular focus on enhancing the tax base.

My family in Karachi owns a textile mill. The mill was established shortly after the formation of Pakistan. Until about few months ago, some of the income might have been under-reported. I don't know. I am not there for decades. But I learned from family sources a couple of days ago that FBR (sort of like Pakistan's IRS) is tightening screws on the business community and so my family, perhaps out of fear, will be paying more taxes. All income will be via documented ways--not cash--and explanations will need to be given for any extravagant lifestyle beyond means.

So little steps in the right direction!

 

[Yankee-stani]

Intresting how did your family manage when other countries got into textiles

 

[Meengla]

Intresting how did your family manage when other countries got into textiles

Not sure I understand what you are saying.
I never took interest in the business. It's a multi-generational business. Ancestors used to do that in India. After the Partition, brought money to Pakistan and started there early on... Feeding generations of family members and workers.

 

[war&peace]

Thank you IK and Shabbar Zaidi

 

[AUz]

This is a first step in a thousand mile journey. We need efficiency and growth in productivity at rapid and sustained pace to regain our lost lead in the region.

 

[Code_Geass]

Most businesses in pakistan under invoice or do not show complete production to the authorities hence richer owners and business in losses..

Cnic condition is perfect as it will bring all the transactions of wholesalers / traders in check with whom business make money by selling out of books..

We might have tough 6 months but govt should not back out of this

 

[Meengla]

This is a first step in a thousand mile journey. We need efficiency and growth in productivity at rapid and sustained pace to regain our lost lead in the region.

Yes.
I have been telling my family that IF they were into shady things then there's no right to criticize the Zardaris of Pakistan.
PS. Saw a video by Haroon Rashid some weeks ago. According to him, the State of Pakistan has incredible powers to grab tax-dodgers: Ceasing of assets, put on the ECL, and even jailing. According to him, despite all the hoopla about the Sales Tax imposed some years ago, it has been enforced.

 

[war&peace]

Yes.
I have been telling my family that IF they were into shady things then there's no right to criticize the Zardaris of Pakistan.
PS. Saw a video by Haroon Rashid some weeks ago. According to him, the State of Pakistan has incredible powers to grab tax-dodgers: Ceasing of assets, put on the ECL, and even jailing. According to him, despite all the hoopla about the Sales Tax imposed some years ago, it has been enforced.

Good thinking sir. I'm pro direct taxation while the indirect taxes should be lowered.

 

[TheDarkKnight]

Just thought to narrate a personal account here to illustrate the impact of the current govt's initiatives to regularize and re-structure Pakistan's economy with a particular focus on enhancing the tax base.

My family in Karachi owns a textile mill. The mill was established shortly after the formation of Pakistan. Until about few months ago, some of the income might have been under-reported. I don't know. I am not there for decades. But I learned from family sources a couple of days ago that FBR (sort of like Pakistan's IRS) is tightening screws on the business community and so my family, perhaps out of fear, will be paying more taxes. All income will be via documented ways--not cash--and explanations will need to be given for any extravagant lifestyle beyond means.

So little steps in the right direction!

Traders are the biggest thieves. We need to get their transactions documented and bring them in tax net.
I commend you for doing the right thing even when it will cost you - but believe me if everyone participates in it similarly then the benefits of a prosperous Pakistan will be for everyone to real.
For example: what is use of saving on tax which bankrupts the govt and then has to devalue currency, which is then a loss for you as well as your assets also get devalued and face inflation? What is the use of saving on tax when rest of the people are poor and creates law and order issues - the rich then are in fear and have to spend more money on security.

 

[Clutch]

Not sure I understand what you are saying.
I never took interest in the business. It's a multi-generational business. Ancestors used to do that in India. After the Partition, brought money to Pakistan and started there early on... Feeding generations of family members and workers.

I think he meant... Most of the textile industry struggled and left pakistan due to the poor conditions... How did you weather the storm and still stuck around?

By the way... Great job. Proud of people like you. Make pakistan great again!

 

[Zibago]

Just thought to narrate a personal account here to illustrate the impact of the current govt's initiatives to regularize and re-structure Pakistan's economy with a particular focus on enhancing the tax base.

My family in Karachi owns a textile mill. The mill was established shortly after the formation of Pakistan. Until about few months ago, some of the income might have been under-reported. I don't know. I am not there for decades. But I learned from family sources a couple of days ago that FBR (sort of like Pakistan's IRS) is tightening screws on the business community and so my family, perhaps out of fear, will be paying more taxes. All income will be via documented ways--not cash--and explanations will need to be given for any extravagant lifestyle beyond means.

So little steps in the right direction!

Now you understand why tajir biradri is out in the streets

 

[I.R.A]

Textile industry in Pakistan normally kept (may still be keeping) dual books of accounting, primarily to avoid taxes.

 

[Trango Towers]

Just thought to narrate a personal account here to illustrate the impact of the current govt's initiatives to regularize and re-structure Pakistan's economy with a particular focus on enhancing the tax base.

My family in Karachi owns a textile mill. The mill was established shortly after the formation of Pakistan. Until about few months ago, some of the income might have been under-reported. I don't know. I am not there for decades. But I learned from family sources a couple of days ago that FBR (sort of like Pakistan's IRS) is tightening screws on the business community and so my family, perhaps out of fear, will be paying more taxes. All income will be via documented ways--not cash--and explanations will need to be given for any extravagant lifestyle beyond means.

So little steps in the right direction!

Proud of you for being on the side of the nation.
Let's hope the money is put to good use

 

[AZADPAKISTAN2009]

Well Taxes are a must , and your business plays a vital role to help national cause.

As for goods solder overseas , you know a minor 1-2 dollar difference won't mean much people don't make decisions based on few 1-2 dollar differences

 

[Meengla]

I think he meant... Most of the textile industry struggled and left pakistan due to the poor conditions... How did you weather the storm and still stuck around?

Firstly, thank you all guys. I am personally not doing something special and perhaps it's the new fear of the FBR that the textile mill is behaving now.

About weathering the storm--well, they almost didn't! Law and Order situation in Karachi, water shortage, AND power supply issues really hurt a lot of businesses in Karachi. But my remittance from America has helped remove some of the stress. I think things are turning around for the family business.