Category Taxation in Pakistan

Thousands of Companies Skipping Taxes in Pakistan

November 20, 2017 Taxation in Pakistan

Pakistan taxesISLAMABAD – While Pakistan’s biggest companies are paying a significant portion of all taxes, thousands of small companies are skipping all of their obligations.

According to information in Pakistan’s recently published Tax Directory 2016, approximately 40 percent of companies in Pakistan did not pay any taxes despite filing tax returns.

In total, 79 700 tax returns were filed by companies and partnerships, with 31 364 companies, and the remainder being made up by partnerships.

The Tax Directory shows that of the businesses that did file returns, approximately 33 000 did not pay any taxes at all.

However, it is noted that the non-payment is an indicator of poor compliance, as the tax rules in Pakistan state that businesses that make a loss must still pay a tax of 1 percent, if they se...

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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 p...

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Without a Tax Overhaul, Pakistan Cannot Meet Tax Targets

July 3, 2017 Taxation in Pakistan

Pakistan taxISLAMABAD – Pakistan has yet again failed to meet its targets for tax collections, a shortcoming that has led to renewed outcry from across the country.

Over the weekend members of the business community of Pakistan and a number of parliamentarians in opposition parties cried out for the government to thoroughly re-examine its tax policies, following another round of disappointing tax collections.

Over the previous financial year, the Federal Board of Revenue collected PKR 3 392 billion, however, the target for collections for the year was PKR 3 621 billion.

The shortfall of PKR 229 billion did not go unnoticed by the opposition Pakistan People’s Party or the business community, which claims that the government is not doing enough to meets its revenue targets or to grow tax revenues each ...

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Pakistan Publishes National Tax Directory

September 12, 2016 Taxation in Pakistan

tax revenue in PakistanISLAMABAD – New information shows that MPs in Pakistan often neglect their tax obligations, and even when they do, they often under-declare their incomes.

Over the weekend the government of Pakistan released the latest edition of its annual Tax Directory, listing all the taxpayers in the country, and their tax payments.

The new Tax Directory showed that at least 120 Ministers of Parliament did not file their tax returns, while another 19 did not pay the taxes that they owed.

The Federal Minister of Finance Ishaq Dar has stated that he will be approaching the MPs who did not file tax returns, in order to convince them to fulfil their obligations.

Soon after the release of the tax Directory it was noted by several local media outlets that even among the MPs that did pay their tax obligati...

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Pakistan Needs to Drop Tax Rates

May 21, 2016 Taxation in Pakistan

ISLAMABAD – Pakistan’s tax authority needs to try and foster more trust with taxpayers by dropping tax rates.

At a meeting of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on May 20th the President of the FPCCI Riaz Khattak called on the government to reduce the rates of sales tax and direct taxes.

Riaz Khattak claimed that currently only 3 percent of the population of Pakistan pay any sales tax, bringing in a total of approximately PKR 300 billion per year.

He added that if the rate of the tax was reduced by 7 percent on all goods and services, the total collected could even be tripled, rising to as much as PKR 900 billion.

The President of the FPCCI also claimed that the government should introduce flat rates of tax for all business sectors, a move which will help...

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