Bhola kia kre by Jawad Ahmad (A song on unjust & unfair Tax System in Pakistan)
- 9 years ago
Jawad Ahmad video song “Bhola kya karey – Wo jiay ya marey” on indirect taxes on poor was launched at National Press Club Islamabad. The Network, Indus Consortium and Oxfam are jointly working on tax reforms in Pakistan.
It is an admitted fact that the richest ten per cent of Pakistanis have accumulated colossal assets in the last three decades without paying due income tax. Exemptions of billions of rupees have been given to the rich and mighty through executive orders (SROs), whereby incidence of indirect taxes on the poor have increased—they have been forced to pay 17% sales tax on many items of daily use. The rich in Pakistan are either outside the tax net or do not pay personal taxes in accordance with their actual ability to pay. As a result, the poor are overburdened with indirect taxes and withholding income tax as well as 17% sales tax on most of the items consumed by them and excessive withholding at source even where income is below threshold limit of Rs 400,000, the tax ceiling. Those who control 90% of resources contribute less than 2% in total tax revenue.
It is an admitted fact that the richest ten per cent of Pakistanis have accumulated colossal assets in the last three decades without paying due income tax. Exemptions of billions of rupees have been given to the rich and mighty through executive orders (SROs), whereby incidence of indirect taxes on the poor have increased—they have been forced to pay 17% sales tax on many items of daily use. The rich in Pakistan are either outside the tax net or do not pay personal taxes in accordance with their actual ability to pay. As a result, the poor are overburdened with indirect taxes and withholding income tax as well as 17% sales tax on most of the items consumed by them and excessive withholding at source even where income is below threshold limit of Rs 400,000, the tax ceiling. Those who control 90% of resources contribute less than 2% in total tax revenue.