Pakistan's Taxation Dilemma

[AZADPAKISTAN2009]

18 Billion Dollars can be collected from Mere correct implementation of Sales Tax on all goods

Expenses are around $328 dollar /house hold per month or $208 per month for lower middle class

SALES TAX

ROAD TOLLS

CELL PHONE RECHARGE TOLL

 

[zulu]

I hope that thread will continuously get valuable input.You give the end pic tell us how we gonna collect it? (by your post i assumed you are in finance side )

 

[Asimzranger]

it is already collected

 

[AZADPAKISTAN2009]

There are Gaps and Loop Holes which need to be corrected


Example
> Estimated Income from Sales Tax should be around 18 Billion Dollars
> Estimated Income from Tolls on internal city streets 4 Billion Dollars
> Estimated Income from Cell Phone Recharging 9 Billion Dollars

Already with 3 initiatives we can make 31 Billion Dollar equal to CPEC investment per year from local sources

• We are not including the Exports we do which earn us additional Revenue
• I have not included the Property Tax mandatory for Property owners in Pakistan
• Only valuable Import we do is Oil/Gas and sure we spend 5 billion dollar on it fine

I think we need to divide Sales Collection down

a) Provincial Level
b) City Level
c) Neighborhood Level

• Cell Phone companies should be asked to disclosed figures for how many times users recharge their cell phones , and how much sales tax they collected

• Toll Tax is 100% City Level Gathering of Tax the figures collected should be recorded daily per city and with both Federal / Provincial Authorities and Tax auditors

If we can figure out this break down we can find the leaks in system where corruption is happening and money is being stolen

 

[ziaulislam]

18 Billion Dollars can be collected from Mere correct implementation of Sales Tax on all goods

Expenses are around $328 dollar /house hold per month or $208 per month for lower middle class

SALES TAX
View attachment 546845


ROAD TOLLS
View attachment 546849


CELL PHONE RECHARGE TOLL
View attachment 546850

So u want people who earn pennies to pay tax and no the rich
Pretty much defines Pakistan problem

 

[FuturePAF]

Sales tax is a major issue IMF continues to bring to Pakistan's attention and it is constantly negotiated

What are the other solutions that the IMF recommends? and what are the pros and cons of each?
Also, Can the lower middle class afford the taxes we are considering here? $5/month is a lot for cell recharging

 

[AZADPAKISTAN2009]

From my understanding IMF has always requested two things fix what is broken in economy

a) Taxation System
b) Sell off your Loss making Assets (Privatization)


They have given you a loan so it is in their interest you as a loan taken do not default on the loan or go bankrupt

I am not a big fan of privatization as I feel a Nationalized institute can still work greatly for country.

But Taxation system is 100% broken in Pakistan

• May be sales tax is not getting to Government of Pakistan because the shop keepers or business owners are falsifying data in their filings so crack down is needed

 

[Asimzranger]

dude an ordinary data entry,assistant,graphic designer, salesman have average monthly salary of Rs15000~30000
meaning he can't even take care of himself or family and you are talking about more indirect tax wah gi wah

 

[AZADPAKISTAN2009]

Most New graduates don't have a problem finding work around 25,000-30,000 range but 40,000 is very much common

Every one can work 2 jobs or 3 jobs

Monday-Friday
Job 1 : 9am-5pm
Job 2 : 7pm-11pm

Saturday-Sunday Job 3 : 4 hours

 

[Asimzranger]

Most New graduates don't have a problem finding work around 25,000-30,000 range but 40,000 is very much common

Every one can work 2 jobs if their chosen profession is not high paying jobs

View attachment 546863

these are exaggerated numbers only high posted job pay more than 50k,most people with graduations are having hard time finding job.

 

[AZADPAKISTAN2009]

My own first few jobs were Internships or volunteer work so if anyone makes 25,000 rupees that is a great start but really if one feels they need to get to 55,000 PKR they can always find a second job

Doctors in Pakistan earn decent
Engineering Jobs in Pakistan earn one decent
Ownership of Private Business is all hard work
Working in Banks are decent pay
Working in Cell phone companies , sales etc all decent
People are always hiring people in Marketing , Accounting , Business
Lawyer and Judges earn pretty decent they are needed always
Teachers (Professionals in University , College and Schools high in demand)


Pakistan does not have a maintenance culture for homes otherwise there would be abundance of part time jobs open

• Painting
• Electrical wiring
• Tree cutting / Gardening
• Lawn mower grass cutting
• Installation of doors and windows
• Removal of Shrubs and Grass around homes
• Work in large shopping malls during busy season
• Sales man parttime job selling cell phones in mall
• Plumber for pipes , kitchen/washroom repairs
• Restaurants are always looking for part time workers for 2nd Shifts

One could earn 25,000-35,000 from main job
Once could earn 9,000 from secondary part time job and get to 40,000-50,000
Work in Restaurant on weekend (1,000-1,700 ) extra

 

[Paul2]

My own observation is that income gaps are astronomical, just like they were in China a decade ago.

Your nation effectively gets few split economies instead of one, when things get stratified so much, and it become a big question which income band you base your policies on when opposite income bands get equally big.

Even today in China, 10% lives of few dollars a day, 10% live netting $50 a day and up. Those people live, effectively, in parallel worlds.

Bottom 10, are the people left behind in dying rural areas. They have no future doing agriculture themselves or being agricultural workforce. Modern agricultural companies are not labour intensive. And they have no education to even do menial jobs in the city... We are talking about basic literacy and math. What to do with those people?

The top 10, are on other hand live in pretty much Western type economy, and are actually being held back by existing cast of economic structure...


During my last trip to Pakistan, I've seen people from households making 5 lakhs plus, they were soooo remote from the general populace...

 

[AZADPAKISTAN2009]

This model is money to be made from Metro cities !!!

We are not even going to Villages and Farm land

 

[Syed1.]

Bhai start by taxing the rich.... I don't know about other cities but the DHA in Karachi is massive and there are easily more than 30-50k houses with each house on average costing Rs 50-80 million. Now Pak tax structure says if you earn less than 200,000 you don't have to pay tax. Can anybody explain to me how can so many people afford such expensive houses yet earn less than 200,000?

 

[AZADPAKISTAN2009]

Tax starts Universally , and then Government normally identify the poor class and makes plans to help them

• Discount cards
• Food stamps
• Job centers to help find job

75% need to pay tax
25% need to pay taxes , gain help from government




Sales Tax
Toll Tax
Cell Phone Tax is Must


Goal to Register 100% of homes in Metro city so property tax figures could be collected accurately