The Central Board of Revenue is squeezing the manufacturing sector, which pays 61 percent taxes, while its share in gross domestic production (GDP) is only 15.9 percent, a data analyst of CBR reveals. Two sectors are creating great distortion by not paying tax proportionately to the share of GDP agriculture and wholesale and retail trade. It has left agriculture sector having 21.5 percent of GDP but yielding only 1.2 percent in taxes.
Wholesale and retail trade contribute only 1.8 per cent in taxes while having 16.4 percent share of GDP. The price distortions are largely a contribution from this sector, jacking up prices without any legal or rational backing. Sometimes, they eat up taxes paid up by people, which they do not pass on to CBR, an official said.
CBR data sheet of income tax says that retailers profile show there are 38,372 entities who filed sales/turnover tax returns in the current fiscal. Out of them, CBR received 3,539 incomplete returns. The retailers filed 1873 blank returns. On retailers' sales/turnover trends, there are seven taxpayers showing their income over Rs 5,000,001 in their returns. Only 361 retail taxpayers showed their income over Rs 4,500,001 to Rs 5,000,000.
Producers of large crops having 10.9 per cent of the GDP share only give 0.9 percent in taxes. Livestock sector with 9.8 per cent of GDP gives just 0.2 percent of taxes.
The second largest contribution came from the public administration and defence sector which pays 10.3 percent of taxes yield but constitutes only 6 percent of entire GDP.
Only finance and insurance contribute a relative share of 2.1 per cent in taxes, while having 2.6 percent share in GDP.
Construction forms 2.4 percent of GDP and gives 2.5 per cent part of taxes. Electricity and gas distribution is 3 percent of GDP and contribute 5.6 percent of taxes.
Transport storage and communication is 12.1 percent of GDP and share a niggardly 3.4 percent burden of taxes.
The non-corporate taxable income figures exhibit that there are 11 taxpayers who have shown their income more than Rs four crore and 50 lakh (45,000,001) to Rs five crore. There are only two taxpayers who have shown their income more than Rs four crore (40,000,001) to Rs four crore and 50 lakh.
There are seven taxpayers who have shown their income in the range of over Rs three crore and 50 lakh (35,000,001) to Rs four crore (40,000,000). There are only 10 taxpayers that have shown their income over Rs 30,000,001 to Rs 35,000,000. There are six taxpayers that showed their income over Rs 25,000,001 to Rs 30,000,000.
According to non-corporate business income, there are five taxpayers that have shown their income over Rs five crore (50,000,001). There are four taxpayers that have shown their income over Rs 45,000,001 to Rs 50,000,000.
Only two taxpayers have shown their income Rs 40,000,001 to Rs 45,000,000.
Interestingly, there is no taxpayer that has shown income, in this connection, in the range of over Rs 35,000,001 to Rs 40,000,000. Only two taxpayers have shown their income over Rs 30,000,001 to Rs 35,000,000. There are three taxpayers that showed their income in the range of over Rs 25,000,001 to Rs 30,000,000. There are three taxpayers that fall in the category showing income in the range of over Rs 20,000,001 to Rs 25,000,000. Only 13 taxpayers have shown their income in the range of Rs 15,000,001 to Rs 20,000,000. There are 31 taxpayers that showed non-corporate business income in the range of Rs 10,000,001 to Rs 15,000,000.
There are 51.07 per cent non-corporate business returns, which showed their income over Rs 50,001 to Rs 100,000. There are 29.85 per cent of returns filed by non-corporate business taxpayers showing their income in the range of over Rs 100,001 to Rs 150,000.
On taxable salary trends, there are 176 individuals who are showing their income over Rs 5,000,001. Only 38 taxpayers have shown their salary income in the range of Rs 4,500,001 to Rs 5,000,000. The taxable salaried income in the range of over Rs 4,000,001 to Rs 4,500,000 was shown by 51 taxpayers, while 8.761 per cent taxpayers have shown their salaried income up to Rs 80,000. The taxpayers who have shown their income in the range of over Rs 80,001 to Rs 100,000, stand at 13.50 per cent. There are 27.507 per cent individuals who have shown their income in the range of over Rs 100,001 to Rs 150,000.
In corporate business, there are two companies showing their income over Rs 10,000,000,001 in the ongoing fiscal. There is only one company, which showed its income over Rs 5,000,000,001 to Rs 10,000,000,000. There are three companies, which have shown their income in the range of Rs 3,000,000,001 to Rs 5,000,000,000. In the upper ceiling most of the companies are in the public sector, which have shown their income in billions of rupees.
There are 716 companies out of total 9962 corporate returns, which have shown their income Rs 100,000. Only 330 companies are showing their income over Rs 100,001 to Rs 200,000 and 223 companies are showing income over Rs 200,001 to Rs 300,000.
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