A small store in a well off society or neighborhood easily makes sales of over Rs. 2 lacs per day, similarly a doctor doing practice in the evening easily earns over Rs. 50,000 per day, a workshop easily has a turnover of Rs. 100,000 per day, similarly a barber shop or saloon will easily have average turnover of Rs. 20,000 per day. Interestingly, none of these will be tax filers or will file correct income statements if they do.
A factory will pass most of their manufactured goods without paying customs, receive payments in cash or in fake accounts and save billions in sales taxes, and other taxes including income tax.
There are great deal of benefits for non tax Pakistanis for being non-filers for business men. If you have income around 5 million, which is not huge for many businessmen and you are not filer then you save 0.5 million in income tax, not to mention sales, withholding and other taxes.
You only buy vehicle once in a while, and property once in 5-10 years. So why register and pay taxes. You can always buy second hand vehicle which will save you hassle of paying extra taxes while benefiting from depreciation as well. Businessman will be mostly dealing in cash, thus staying tax free most of the time. Governments are also unwilling to tax businesses due to fear of business community.
Even when you buy new vehicle, you can always use services of a relative/friend who would transfer the vehicle later in your name; still there is no point in being filer and end up paying income tax.
Asad Umar has recently allowed non-filers to buy property and vehicles, so no need to worry.
Anyways, its time for salaried class to get ready for filing because they lose out and have to pay higher taxes if they don't file tax returns.
Salaried class continues to be a victim, because they pay taxes directly on their salary, and they have to use bank accounts for their transactions, they don't have the option of dealing in cash.
So, if you are interested in learning about filing tax returns then here are some of the benefits :-
https://accountantexplains.wordpress.com/2016/08/11/why-should-i-file-income-tax-return-in-pakistan/
https://www.dawn.com/news/1434056
https://www.brecorder.com/2018/10/01/442816/imf-urges-pakistan-to-bring-non-filers-into-tax-net/
A factory will pass most of their manufactured goods without paying customs, receive payments in cash or in fake accounts and save billions in sales taxes, and other taxes including income tax.
There are great deal of benefits for non tax Pakistanis for being non-filers for business men. If you have income around 5 million, which is not huge for many businessmen and you are not filer then you save 0.5 million in income tax, not to mention sales, withholding and other taxes.
You only buy vehicle once in a while, and property once in 5-10 years. So why register and pay taxes. You can always buy second hand vehicle which will save you hassle of paying extra taxes while benefiting from depreciation as well. Businessman will be mostly dealing in cash, thus staying tax free most of the time. Governments are also unwilling to tax businesses due to fear of business community.
Even when you buy new vehicle, you can always use services of a relative/friend who would transfer the vehicle later in your name; still there is no point in being filer and end up paying income tax.
Asad Umar has recently allowed non-filers to buy property and vehicles, so no need to worry.
Anyways, its time for salaried class to get ready for filing because they lose out and have to pay higher taxes if they don't file tax returns.
Salaried class continues to be a victim, because they pay taxes directly on their salary, and they have to use bank accounts for their transactions, they don't have the option of dealing in cash.
So, if you are interested in learning about filing tax returns then here are some of the benefits :-
https://accountantexplains.wordpress.com/2016/08/11/why-should-i-file-income-tax-return-in-pakistan/
https://www.dawn.com/news/1434056
https://www.brecorder.com/2018/10/01/442816/imf-urges-pakistan-to-bring-non-filers-into-tax-net/
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