PM Shehbaz announces 10pc 'super tax' on large-scale industries

[Genghis khan1]

If I understand correctly, the tax is only on the very rich. You are right that higher taxes lead to evasion, but with technology and so many linkages and identification numbers, it is rather difficult to escape the long arm of the law, i.e. if the government is really serious about it. New (higher) tax bracket on the rich is an indication that the government has run out of options. If inspite of this they choose to allow rampant evasion by the rich (who should already be in the tax net), it is very unfortunate.

You missed the point. With this ridiculously amount of Tax, investors will not invest in Pakistan. Even local investors will move their money outside. Influential rich in Pakistan ( like politicians) will evade Tax just like they have been with the help of those that supposed to implement it. There is no long arm of the law in Pakistan for the rich. Everyday, millions of dollars worth of stuff is imported for the rich Tax free. Hire right people (ex-govt officers), who than use their contacts to bribe and release stuff.

Everyone should pay their equal fair share of Taxes. Same %, Not more or less. Exception should be dirt poor folks.

 

[Paitoo]

You missed the point. With this ridiculously amount of Tax, investors will not invest in Pakistan. Even local investors will move their money outside. Influential rich in Pakistan ( like politicians) will evade Tax just like they have been with the help of those that supposed to implement it. There is no long arm of the law in Pakistan for the rich.

Every should pay their equal fair share of Taxes. Same %, Not more or less. Exception should be dirt poor folks.

Unless they plan to make this tax sticky (which they sometimes become), a higher tax for just one year is not going to make industry move out lock stock and barrel. It is not so easy to move your business out. The index has fallen, some notional loss has been booked, people wont be talking about the stock market in a few days. I am myself not in favour of high taxes, but like I said, this is an indication that no other option is left.

Investors move out when they see dodgy and inconsistent policies, not necessarily high tax regime. They can always adjust to that and pass on their higher costs to their customers

 

[Genghis khan1]

Unless they plan to make this tax sticky (which they sometimes become), a higher tax for just one year is not going to make industry move out lock stock and barrel. It is not so easy to move your business out. The index has fallen, some notional loss has been booked, people wont be talking about the stock market in a few days. I am myself not in favour of high taxes, but like I said, this is an indication that no other option is left.

Investors move out when they see dodgy and inconsistent policies, not necessarily high tax regime. They can always adjust to that and pass on their higher costs to their customers

Investors move out when they see they can earn more money elsewhere than in Pakistan. No one in their right might will pay 39% Tax. This is a robbery. I know my own family members are selling properties and moving their savings abroad for investment. I advise them instead of renting properties in Pakistan. Do it in US. Rent is twice as much for same amount of cash invested.

 

[ghazi52]

.,.,

 

[Catalystic]

Means more corruption money for FBR employees……