Tax pay an essential part in building the economy of the country but unfortunately due to wrong use of our tax money by most of the Govts in Pakistan. People avoid to pay their taxes or try to find ways to prevent it. This has brought Pakistan to very less tax collection. It’s not that people of Pakistan are not willing to pay taxes, it worth to mention here that Pakistan comes in the list of wealthier countries who do charity Pakistan gives 1 per cent of GDP in the charity whereas wealthier countries like Canada gives 1.2 per cent, U.K gives 1.3 per cent. As per calculation, Pakistan gives 2 billion dollars in charity every year.
Coming back to taxes the government has announced a gradual reduction in corporate tax and aims that by 2023 the corporate tax will be reduced to 25 per cent. Currently, the tax corporate tax is 30 per cent, it will be 29 per cent in 2019, and by 2023 it will be 25 per cent.
Super tax implemented in 2015 for rehabilitation of internally displaced persons which was 4 per cent on banking companies and 3 per cent on non-banking companies but only for those companies which has revenue greater than Rs. 500 Million. The super tax will be applicable in 2018-19 but will be reduced by 1 per cent and this reduction will be implemented for both banking and non-banking companies.
Many are against the implementation of the super tax.
People of Pakistan are now more motivated to pay their taxes as the prime minister Imran Khan has promised that he will personally look after their tax money and will ensure that it is being spent at the right place for the betterment of the people.