Pakistan’s Current Taxation system is defined by Income Tax Ordinance
2001, promulgated on 13 September 2001, which became effective from 1
July 2002. Taxes are required to meet the expenditure and spending that
a country needs to give out its people. Pakistan operates through
hybrid system, Federal Board of Revenue (FBR) collects taxes on goods
and the provinces impose on services.
Main Concern of Pakistan’s Tax Policy
Government collect taxes from its people in order to spend the
collection on the welfare and well-being of its people which includes
debt servicing, national defense and other welfare related issues. Our
current tax collection system has many flaws which comprises of
loopholes in the system that go along with the corruption of Federal
Board of Revenue (FBR) officers which speaks about the justice and
fairness of our government officials for their people. There favors to
their delighted people are the major root cause of the corruption that
weaken the taxation system of the country.
The current tax-to-GDP ratio in Pakistan is 12%, which is lowest in
the SAARC countries as compare to other countries. If we compare this
ratio with any of the developed countries, we are far below in numbers.
The tax-to-GDP ratio in other continents like Australia is 25.8%, in
America 26.9% and all European countries around 37-39%. The world bank
report shows Pakistan GDP graph of last 8 years.
No, the CNIC and NTN numbers are two different numbers. The CNIC is a 13-digit number that consists of the first three parts of a five-part section that gives different demographic information and the second part is his family number and the last part represents your gender group. But the NTN number is completely different this number has two digits and is 8 digits. The NTN number is generated sequentially. CNIC and NTN have been different numbers but the FBR has announced that from the 2018-18 financial year they will both be equal. The announcement to include in the CNIC as NTN figures in effect from the last fiscal year 2018 - 19, the Federal Board of Revenue (FBR) are all set to use the details of companies to extend the tax base, it is read. The Federal Board of Revenue has said NADRA has issued CNIC numbers to NTN (National Tax Number) for all Pakistanis and anyone who submits tax forms can use their CNIC instead of NTN issued by Fbr. Please check blogs for more informatio...
KARACHI: The minimum tax on turnover has been proposed to impose on non-resident companies having permanent establishment (PE) in Pakistan. The amendment in Section 113 of the Income Tax Ordinance, 2001 has been proposed through Finance Bill, 2020. According to EY Ford Rhodes Chartered Accountants the Section 113 of the Ordinance levies minimum tax on a person based on his turnover where such person is not liable to pay tax due to various reasons listed therein. However, the levy of minimum tax in case of corporate taxpayers, is only applicable on resident companies. This means that foreign companies having a permanent establishment in Pakistan (including a branch) are not subject to minimum tax. The Finance Bill 2020 has now proposed to include non-resident companies having a permanent establishment in Pakistan under the domain of minimum tax on turnover. Consequently, such companies would be required to compute minimum tax under Section 113 of the Ordinance for determina...
You can apply for NTN through the website: https://e.fbr.gov.pk , by following steps given: Step 1: Go to https://e.fbr.gov.pk to apply for NTN Step 2: From the drop-down menu ‘e-Registration’, select new e-registration to start with a new application. Step 3: Select the application type (New Registration, Change in Particulars’ ST FED Registration, Duplicate Certificate) Step 4: Select the taxpayer type (Individual, AOP, or Company) Step 5: Enter the CNIC / NTN / Reg. Inc, according to the selected taxpayer type, Name and image character then click ok to proceed. Step 6: Already selected category will appear on the next screen (Individual, AOP, and Company). Step 7: After the completion of the online registration form, verify and submit the application if you want to apply online. To process from TFC, submit the application along with documents at our TFC counter. Step8: A token number will be assigned to the application for further processing/ approval/inquiry. N...
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