Recently I saw a very interesting calculation of tax on internet. Tax calculation was of indirect taxes i.e. General Sales Tax (GST) in Pakistan. Income Tax is applicable when income exceeds Rs 400,000.
If we take those people who are spending Rs. 1000 daily (and are not earning more than Rs. 40,000 per month) it means they are paying 17% GST i.e. Rs. 170 as tax.
- Daily expenditure – Rs. 1,000
- Daily Tax – Rs. 170
- 365 Days (1 year) expenditure – Rs. 365,000
- 365 Days (1 year) tax – Rs. 62,050
- 5 years expenditure – Rs. 1,825,000
- 5 years tax – Rs. 310,250
— Awami Web (@AwamiWeb) April 21, 2016
This above Tax is paid by everyone whether he is paying income tax or not. Besides this indirect tax (GST) people also have to pay many other taxes like Motor Vehicle Tax, property tax, Value Added Tax (VAT), Withholding Tax, Capital Gain Tax (CGT) etc.
— Syed Kafeel Abbas (@Talash_Pakistan) September 9, 2015
What is the withholding tax for this bakra? how much GST on this cow ? Is there any FPA ? 😀 😛
— JaMI (@JavaidMustuffa) September 18, 2015
The biggest question is which have been asked million of time as what people are getting by paying this tax specially middle class and poor (who are also paying indirect taxes)?
The Income Tax law of Pakistan allows only to check past 6 years inc current, so we cannot go beyond 2010: Ali Rahim pic.twitter.com/JfiXpbK5rN
— Dunya News (@DunyaNews) April 14, 2016
However I am not expecting anything from government, just sharing with readers.
By Mubashir Mahmood. He tweets @mubashirmahmood