Wednesday, 10 June 2015

Taxation Suggestions

I have few suggestions regarding taxation in pakistan,

1. Decrease tax evasion by :
  1. Access to five Star hotels , Resorts , Major Properties may only be given to people with Verified NT. Baharia Town , DHA etc .
  2. FBR should launch Audit of individuals and should provide everyone with NTN Card ( especially for high net worth individuals) - These Cards should give them fast access to visas etc.
  3.  How to arrest the tax evaders? No one should be allowed to go to Umrah or Hajj till they have a valid NTN . I know this is drastic but we need drastic measures . Everyone needs to apply for NTN when going to Umrah or haj. this will update their record. They need to disclose their bank accounts and properties etc for Umrah or Hajj application.
  4. Anyone going abroad on immigration should have a through check / Audit from third parties regarding his properties and impending taxes etc before he is allowed to leave Pakistan.
  5. All business class travelers on local routes will need to have a green chit or a special card from FBR indicating they have paid taxes etc.
  6. One is not eligible to own an house of more than 500 sq yards if he doesn't have a past tax paying record of three years.  So no ownership should be on wife or people not working. Husband however can buy it for wife but will need to show his documents.
  7. Increase in PPL and OGDCL activity and higher rate for locally produced gas. this will help the CNG sector as well as reduce our energy import bill.
  8. Higher tax for non resident domicile for buying property in a city he doesn't have domicile for. Will increase tax collection and reduce migrations.
  9. Increase tax on imported cars. Reduction of tax for cars less than 1500 cc.
  10. third party audits of high net worth individuals and big businesses.
  11. FBR should start a defaming campaign by publically listing tax defaulters especially high net worth individuals, politicians , crickteters etc.
  12. Agriculture land tax is essential and should be incorporated at any cost.
  13. Private Schools should have a max fees set. above which they cannot charge.

2. Increase in CGT specially for stock market will not benefit the small investor. Rather will help the big fishes since small investor will think twice before selling. this in turn may increase returns for govt but stocks will become a monopoly. A better way would be to treat large investors as corporations and taxing them every year 10 percent on their earnings .

3.  increase in budget for universities is essential for Pakistan at this moment of time.

4. Pakistan needs a landmark project to launch its comeback , just like Burj Dubai for Dubai. We are a rising nation we need to build something really impressive . something that will restore confidence on us as an investment opportunity.

5. Die in Pakistan campaign. We need to bring back our elderly from abroad back to pakistan. Govt with partnership with private real estate developer should focus on bringing back our aging population from abroad . Give them facilities and let them bring back all their hardwork to pakistan. The love for Pakistan remains we need to give them confidence to come back.

6. increasing budget of IT sector. Pakistan has one the most versatile IT sector . Govt needs to invest in it right now to reap profits. Make in Pakistan Campaign  , Apps, websites , SM etc.

7. Increase in real estate tax , this will help people invest in Stocks and companies rather than properties . thus helping grow economy.

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