Pakistan’s Policitians Evade Taxes

December 13, 2012 Taxation in Pakistan

tax evasion in pakistanISLAMABAD – Fresh attention is being drawn to Pakistan’s widespread problem of tax evasion, with new claims arising that the majority politicians in the country, including the Prime Minister, have chosen not to meet his own tax obligations.

On December 12th the Center of Investigative Journalism in Pakistan released a new report detailing the extent of tax evasion amongst the country’s politicians, and showing that out of the 446 the members of the National Assembly and the Senate only 146 filed any tax returns in 2011.

Amongst those politicians with submitted tax returns only 15 ended up paying more than PKR 1 million (approx USD 10 260) in taxes, and 68 actually paid less than PKR 100 thousand each (approx USD 1 025).

The report also highlighted the fact that 78 members of parliament were not even registered for a national taxation number.

The Center claimed that the rampant tax evasion is present at all levels of government, with the Prime Minister, Foreign Minister and Finance Minister all allegedly paying no taxes.

The findings in the report were partially confirmed by the Federal Board of Revenue, which stated that according to its own records an estimated 200 members of the national assembly and 60 Senators are known not have paid taxes despite having a taxable income.

Photo by rchughtai — “not very active”