Govt is quick to increase the price of electricity unit even if there is mere speculation about increase in oil prices… But now that oil price is floating around USD 50 / barrel from USD 100 / barrel from eight months. Why the benefits of low fuel cost is not tranfserred to common people?
Is there anyone in NA to raise this issue??? I doubt about that because our politicians like to win a seat and not the representation of and from the people…
Re: Common issues - electric bills & oil price
our MNAs are busy in playing other games, This govt is very lucky to have oil prices soo low for very long time.. Give lots of relaxation on foreign reserves . They need to transfer this to common.
Re: Common issues - electric bills & oil price
they are busy transferring the benefits to ‘ashraafiyah’ … no surprises there! 
Re: Common issues - electric bills & oil price
Establishment won't let them do anything.
This is an indirect tax on people who have to compensate for those who don't like to pay direct tax.
Re: Common issues - electric bills & oil price
Establishment won't let them do anything.
This is an indirect tax on people who have to compensate for those who don't like to pay direct tax.
If the fbr cannot implement and collect direct taxes and around 80% is to be collected indirectly, then whats the point in this huge body we call FBR...
Taxes are collected when there is will to collect, as of we speak Pakistani economy have potential to generate around Rs.5500 billions through direct Taxation without any additional tax but thanks to corrupt officials of FBR, the 80% of Rs. 3000 billion revenue is from indirect taxes and remainder is stolen...and if there is short-fall then these corrupt officials increase any indirect tax and/or introduce something totally unheard-of and maje sure their clientele is not exposed to it.
I say liquidate FBR and Pak's revenue shall increase by 20-25%.
Re: Common issues - electric bills & oil price
If this ploy of with holding tax on all bank transaction , sure there will be many in tax net. but a group with in PML - N wil not let them succeed .
Re: Common issues - electric bills & oil price
If this ploy of with holding tax on all bank transaction , sure there will be many in tax net. but a group with in PML - N wil not let them succeed .
This is most stupid thing FBR have ever cameup with... Withholding tax on all banking transaction...regardless of how u have generated this income... What if all the money one have came from some (inheritance ( selling inherited property, car,) or remittances from out side or your income from fix deposits.. Banks have no way to find it out and u may end up paying taxes upteen times on same income...and on top of that, all the money in bank accounts is decalred and is classified as white money...why to tax it again??? If someone have fake account and amount then banks to be equally blamed.
Like i said earlier, FBR tries to fnd way where it can collect tax and at same time does not harm rhe hand feed them...
If FBR have been serious then there are lit more and better way to collect tax, i.e. make all traders/shop keepers to get an annual license/tax paper of Rs. 5000, this should be for small traders who have shops in residential area...and 100,000 / annum for the one are paying rent of 100,000/month... say u have just 100,000 small shops who shall be paying 5,000 annually in Lahore city, This gives an annual revenue of Rs. 500 milion and 100,000 people in tax net of this country....and i've not calculated the bigger traders who are in posh areas or are wholesale dealers...
FBR will simply wont do something like that as it will not provide them with any chance of getting bribe...and this is the bottom line
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Re: Common issues - electric bills & oil price
^ I also thought the same as to why charge to over seas Pakistanis , retired ppl , House wife etc....
Main point is this tax is lavied on no filers. For filers . A filer not necessary pay tax . He/ She need to submt tax return and get a tax no. This no. to be submitted to bank and than there will be no deduction.
All busniness people specially those who are not paying tax on their sales are hiding their annual sales values in the tax returns . They will be caught with the value of transactions they are doing.
Submit ta return I beleive is not that difficult. I think all process can be done online ( thoguh I have not completed it )
I beleive situation will be more clear after september when tax on non filers will be increased to 0.6 %. I hope no. of people submitting tax returns will increase.
Re: Common issues - electric bills & oil price
^^^
This is crap they are selling, that is on non fillers etc, one question, if no business account on any pakistani bank can be openned if there is no tax number, i.e. NTN... And if no non-commercial account can be openned without proper salary certificate or decalration of source of income then how come anyone can hide his wealth in bank. Without the consent of state bank??? Any thoughts???
This withholding tax is nothing but the method to increase the revenue to meet newly set targets...
FBR simply want to tax the whitemoney of the people forcing them to move to parallel banking...and then these FBR guys can get a bite of it for themselves and country can goto hell..
Re: Common issues - electric bills & oil price
^^ I think u r not getting the point. I dont like the finaincail and electricity policies of PML-N but his one I beielve may work in increasing the tax net.
Re: Common issues - electric bills & oil price
^^ I think u r not getting the point. I dont like the finaincail and electricity policies of PML-N but his one I beielve may work in increasing the tax net.
My brother, exactly my point....one may not have a bank account until he can provide source of income and tax number...
If source is businesd then without tax number, account cant be openned, it is as simple as that..
If source is salary, then tax deduction is at source....
If it from fixed income, again a withholding tax of 10% is there, and amount is deducted at source again
If it is remittances then again applicable taxes are paid....
Mu question is simple and straightforward... Why taxing the people who are paying taxes??? This will not increase the tax net but it will shrink the economy for good...
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Re: Common issues - electric bills & oil price
...Why taxing the people who are paying taxes??? .. .
Because others have hired Ayaans for their transactions. FBR can't or don't want to touch them.... for obvious reasons.
Re: Common issues - electric bills & oil price
My brother, exactly my point....one may not have a bank account until he can provide source of income and tax number...
Mu question is simple and straightforward... Why taxing the people who are paying taxes??? This will not increase the tax net but it will shrink the economy for good... .
Opening an account with a salary source or busniess source doesnot mean you are in the tax net. Once you dont filer you will keep paying 0.6 % .
Once you are filer you will submit you NTN which gives FBR an access to cross check what is submitted as tax return and how much business being actually done.
Dont you understand why all big fish are fighting at this coz they know they will be caught about the amount they are paying as tax and how much turn over they actually have.
There is huge transaction being done for sale and purchase of property and the middle men are earning millions over it while paying only peanuts. Real buyer maybe doing big purchase once a while but agents are doing daily but paying nothing.
This is my understanding about it . I amybe wrong as well . Lets see
Re: Common issues - electric bills & oil price
^^^
U r missing point here,
Scenario 1
Iam a businessman, i have shop/ office, my annual turnover is around Rs. 10 million, my trading capital is Rs.2 million, with debt to equity ratio 40:60.
I was onlt able to secure the loan and open the account because i have NTN ( national tax number, means i file my returns, and FBR personal have no problem.
Now with this tax on every transaction, this is what going to happen:
I bought trading goods and made a payment for it... 90% of the payment is from OD or other loan. And now i have to pay that 0.3% tax on payment to banks, on payments to suppliers and every other transaction...abd that is because i have NTN.
Now if i stop doing business with bank and have my amount in locker.. Now i dont need ro borrow from bank ( bank lost business) now i can reallt hide the money and FBR personal will take some 10-20 thousand a month and i am all done....
Scenario 2
I am working outside and sending my savings to my bank account in Pak. After years, i return back, only to find out that i bank is going deduct tax from the income i have made outside Pakistan and only wrong i did was remitt it to Pak. BTW, as per law, this kind of income is not taxable in pak..
Yet i have to pay tax.
Scenario 3
Iam work in private sector in Pakistan, i have savings, my INCOME TAX is deducted at source...after years of saving, i have some amount which i may need for my kids, now i have to Rs. 600 or 300 after every 100,000 of my hard earned and saved and taxed money.
In all the scenarios above, bank have audited my income and have always questioned the transactions..especially my deposits...
And now some GENIUS sitting in FBR decide to take bhatta on my money???
If it is all.about increasing tax net, and bs they are talking, then there is easier and more secure way to do it... Stealing money from the people who have white money is not the way...
Lastbnot least, my brother in law is in trading business, they sell at the margin 2-5%. He is in tax net, got NTN, and in one sale, one may pay/recieve in 2-3 installments, one may have to pay interest to bank, one may have some long or short term business loan??? Who knows..if the transaction value is 5 million, then the profit for trader is 175000 from which he need to operate...
The example u quoted, the land transaction, yes they make good money, but not on all transactions... Again, there are costs, interest, expenses, bribery and other expenses, and then there is govt fees in the of Stamp Paper, remember, for the land developers and real-estate agents/brokers, they mau conduct 6/7 deals per year successfully...rest is just talk.
Tax them, but not in ridiculous way.. And as long as FBR and its corruption is their, it will never comeup with sane tax system
Re: Common issues - electric bills & oil price
Because others have hired Ayaans for their transactions. FBR can't or don't want to touch them.... for obvious reasons.
And this may increase the rate of Ayaans...
Here is question be asked, with the salary govt officer or grade 19 draws, how come he travels abroad frequently, even once a year is not possible, how come his kids are getting education there, how come he have property their...
I have wasted some 18 years abroad, i should have joined the services and would have "served" country greatly and after retirement would have written Shahab Nama or would be writing columns in newspapers.. With frequently visiting US...