There is a strong demand for grant of amnesty across the board to people of Pakistan on payment of 3-5% tax. While the government wishes to bring into tax net people who have been tax evaders. On the other hand, heavy taxes are levied on honest tax payers, ie:
1. 20% tax is deducted at source on salaried income.
2. 8% tax is payable to the provincial tax authorities on rental income.
3. Corporate tax @ 34% is payable by corporate entities.
4. Capital Gain Tax is payable on shares in various slabs between 12.50% to 20%.
5. Tax on dividend is payable at minimum of 12.50% despite the fact that dividend is distributed by the listed companies after paying corporate tax. This is tantamount to double taxation in the hands of share holders.
It seems that the government wants to reward tax evaders as against taxpayers by frequently introducing amnesty schemes. Unfortunately, however, taxpayers have no say in the exorbitant expenditures of the government.
The culture of tax payment can only be developed if there is fairness and equity in the tax system.
Comments
Comments are closed for this article.