The tax gap
In a recent disclosure, the Chairman Federal Board of Revenue (FBR) admitted that tax gap of Pakistan is Rs 3,000 billion. According to a press report, he said that this…
Current tax regime – an impediment to growth
Pakistan’s tax regime is perhaps one of the biggest impediments to economic growth. High tax rates and complexity discourage the undocumented economy to enter the tax net whilst stifling capital…
Taxing nation’s savings – but at what cost?
The budget 2022-23 is continuation of a series of budgets for the last several years that have been increasing tax rates and withdrawing exemptions, mostly raising the tax burden on…
Wealth tax in the guise of deemed income
Whenever historians will write the history of an abusive, incorrect, absurd and technically incorrect tax imposition anywhere in the world they will censure Pakistan for its ‘presumptive’ and ‘minimum’ tax…
Reforming tax system
Tax reform is a policy implementation by the government through which a few alterations are made to the tax system in order to overcome the loopholes and enhance the effectiveness…
Pakistan’s taxation regime discourages self-employment and small businesses
Pakistan’s tax policy discourages individuals from self-employment or running small businesses. While salaried individuals get taxed at 35 percent tax only above an annual taxable income of Rs 75 million,…
Tax misconceptions
There has been no prime minister during the past three decades who has not blamed poor macroeconomic performance on those who do not pay taxes - tax evaders who are…
FBR — making tax digital and beyond (II)
The top global trend at the moment is continuous transaction control-CTC aiming to close VAT gaps, increase revenue and have more control over data. CTC regimes however, is not uniform…
Curtailing global tax avoidance practices
Global taxation is central to global decision-making because most foreign direct investment (FDI) and global operations these days are biased by tax considerations. The numbers are huge. For instance, with…
The Merger and tax issues
The passage of Constitution (Thirty-first Amendment) Act, 2018 ["31st Constitutional Amendment"] by Senate and National Assembly, its adoption by the Assembly of Khyber Pakhtunkhwa [by vote of 92 to 7]…
