Panama Papers Scare Pakistan’s PMs into Compliance

July 28, 2017 Taxation in Pakistan

Pakistan taxISLAMABAD – MPs in Pakistan have started to report their full incomes and pay their full tax obligations, with some MPs reporting a 3 900 percent spike in payments.

Parliamentarians in Pakistan are owning up to the extent of their personal incomes and declaring levels which are closer to the truth in the new Parliamentarian Tax Directory released earlier this week.

The Parliamentarian Tax Directory is a recent initiative aimed at encouraging PMs to declare and pay their full tax obligations.

It is believed that the cause of the spike in tax payments is a combination of the efforts made by the government to encourage tax compliance and the after-effects of the infamous Panama Papers scandal.

It is thought the increasing likelihood of illicit tax behaviour coming to light has scared some politicians into increasing their compliance.

The total of the tax payments reported in the Directory for 2016 is PKR 396 million, which represents an increase of 28 percent compared to the previous year.

However, increases among individuals have been much higher, with some cases seeing a spike in payment equivalent to 3 900 percent.