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.
ISLAMABAD: Federal Board of Revenue (FBR) has notified rules to launch Authorized Economic Operator (AEO) program to improve trade and business environment in the country. The AEO was launched by inserting Section 212A was inserted in the Customs Act, 1969 through the Finance Act, 2018. The FBR now issued AEO rules vide SRO 798 (I) /2020 dated August 28, 2020. FBR has also constituted AEO Approval Committee in this regard which is finalizing the request of applicants. Software for business process and WeBOC modules for AEO programme has already been developed and is ready for launch at present. The FBR intend to start Pilot project of the AEO programme at MCC Port Qasim (Exports) Karachi in October, 2020, which will be later on extended to import sector as well. The World Customs Organization’s (WCO) Authorized Economic Operator (AEO) Programme is one of the pillars of WCO’s Framework of Standards to secure and facilitate trade (SAFE). The programme is widely acknowledged as a ke...
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...
If you're a citizen of Pakistan residing in an exceedingly foreign country, you may have some queries relating to filing your tax returns. Or even you would like to know if you'll become a tax filer, to start with. Whereas the prospect of handling taxes could appear overwhelming to some, the method through that overseas Pakistanis become tax filers is sort of easy. Before we have a tendency to discuss however Pakistani expats will file tax returns from the comfort of their homes, let’s address a number of common misconceptions and queries you may have. Do Overseas Pakistanis Have to File Taxes? The simple answer is yes, overseas Pakistanis ought to file taxes. However, they're solely taxed on their Pakistan-sourced income. Taxation in Pakistan, very like in different countries, relies on an individual’s residential status rather than their position. Previously, someone was thought-about a tax resident if they keep within the country for a period of 183 days (or lo...
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