Re: Should Punjab carry Pakistan's burden
This is sort of a myth that most of Tax is 'raised' from Karachi. Collected, yes, raised, no. Most of our income tax comes from corporations and salaried individuals and most headquarters of corporations are based in Karachi. Income tax paid by, for example, Engro would be 'collected' in Karachi, regardless where the plants are located. And, for example, income tax collected by MCB from all its employees would eventually be collected in Karachi where the head office is based, regardless where the employees are based.
Same is the case with import duties, sales tax on import/export, custom duties. Regardless where the industry is based, these taxes are collected at Karachi port.
Karachi contributes 20% of GDP of Pakistan... that is true. Karachi contributes 70% to revenues, that is BS. Sorry for being so blunt.
Brother, when you do not know something or want to stay blind of the facts then do not comment. Anyhow, since you raised the issue justifying what is untrue, I think it is appropriate to clearly that.
Forget corporate tax and import duties and propaganda based on that (what people outside Karachi like to do) … let look at figures more closely.
Agriculture: 21 % of GDP
Industry: 25 % of GDP
Services: 54 % of GDP
For tax purpose, other than agriculture, one another category that comes in industry (not agriculture) and is large part of Pakistani economy outside Karachi, is paying no tax or paying negligible tax. That is … Horticulture, animal farming, mining and quarrying.
Pakistan economic activities are further divided into two categories, rural and urban economic activities.
Most service sector of rural economy, small town and cities in Pakistan pay no tax.
So, you can easily exclude around 60% to 65% of Pakistan economy that contributes nothing to federal tax collection, and most are outside Karachi.
Population of Karachi is 10 % of Pakistan, and most are economically active. Karachi economy is around 25% of Pakistan economy and that is mostly taxed (at least 80% of Karachi taxable economy is taxed). …
So, if 35% of Pakistan economy is taxed, at least 20% of that taxed economy (or at least 60%) is from Karachi … in other words, most tax collected by federal government, from 60% to 70% comes from Karachi ... and FBR collection figures itself is proof of that.
