Category Taxation in Pakistan

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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Upping Tax Take In Pakistan Calls for “Out of the Box” Thinking

March 14, 2016 Taxation in Pakistan

KARACHI – Tax authorities in Pakistan hope to raise the tax-to-GDP ratio to 18 percent, though some experts think that their strong-arm tactics and poor treatment of taxpayers have placed the goal out of reach.

While speaking at a conference hosted by the Karachi Chamber of Commerce and Industry late last week, Haroon Akhter, the Advisor to the Prime Minister on Revenue of Pakistan, said that the tax-to-GDP ratio in the country needs to rise to 18 percent in order for the government to see a budget surplus.

Currently the tax-to-GDP ratio in Pakistan is estimated to be approximately 11 percent, which will rise to a further 12 percent over the course of this year.

Explaining the implications of even further rises, Haroon Akheter said “…if tax-to-GDP improves by 6 per cent, bringing it at p...

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