PM urges businessmen to help generate more taxes
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ISLAMABAD: Prime Minister Imran Khan on Wednesday urged traders, businessmen and industrialists to work with the government for collection of more taxes.
Addressing an award-distribution ceremony of the Gujranwala Chamber of Commerce, the prime minister expressed the confidence that with collective efforts the nation would be able to overcome all its problems and challenges.
He regretted that the country had been burdened with a whopping debt of Rs30,000 billion in the last decade by the previous governments. About half the money collected in taxes each year was spent in repaying the country’s debts or interest on them.
Mr Khan said the country could no longer function under such conditions and the existing mindset. About 70 per cent of the total taxes collected came from 300 companies. Only a meagre amount was collected in the service and agriculture sectors.
Vows not to bow to pressure from certain groups of traders
“We have to change the mindset as the country can no longer be run according to outdated patterns. It is necessary to broaden the tax net,” he said, adding that in the past people did not trust the Federal Board of Revenue (FBR) due to their bitter experiences.
He said that in 2013 a minister had admitted that there was corruption in FBR, but now the organisation was being reformed.
About the resistance being offered by certain groups of traders to new taxation measures, Mr Khan declared that he would not bow to pressure and give up his stance because doing so would amount to being disloyal to the country.
On the one hand, he said, people were demanding better schools and hospitals, but on the other, the country didn’t have the financial resources required. Under the given circumstances the facilities could not be provided to the people, he added.
Published in Dawn, July 18th, 2019
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Jul 18, 2019 07:30am
A desperate plea for help! Help build the country... Help yourselves...
Gordon D. Walker
Canada
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Jul 18, 2019 07:34am
Traders, Business men are the back bone of the country. It is their country. Their heart move with Pakistan. They also want to see prosperous and strong. So prosper your businesses and industries to create more jobs. Pakistan needs taxes for it's development and defence. Don't waste your money on paying bribe to corrupt and paying fees to consultant and lawyers to fight your cases against FBR and other institutions. It is responsibility of Imran Khan and Shabbar Zaidi to protect businesses and industries from high handedness of FBR. Please give assurance to Traders and Industrialists.
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Jul 18, 2019 07:37am
Cheating on taxes is a common problem all over the world. BUT, it is the worst in India and Pakistan.
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Jul 18, 2019 07:47am
So he can spend on his luxury trips abroad with all the promises of austerity
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Jul 18, 2019 07:52am
PMIK should have urged businesses to generate more employment for citizens.
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Jul 18, 2019 08:01am
Great move by IK!
Until Wealthy Pakistanis pay their fair share of Direct Taxes, Pakistan’s Tax-To-GDP Ratio will remain below level required to run the country!
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Jul 18, 2019 08:04am
That is the stance needed and currently only IK can pursue it though it will be against his political career
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Jul 18, 2019 08:08am
Perhaps he thinks that if he keeps repeating this mantra it'll come true. Businessmen respond to incentives and disincentives. They will not listen to his emotional pleas.
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Jul 18, 2019 08:11am
There is need to increase the revenue of the Government.. There is also need to control expenses by the Government. I do not see clear statements to achieve this goal. Some visible areas that would benefit from expense control are number of Federal Cabinet and advisers, their packages/expenses, number of Provincial Cabinets, packages of MNAs, MPAs and Senators.
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Jul 18, 2019 08:18am
IK, you may be icon in Cricket, but it is now fairly proved that politics and governance are not your fields. It will be far better, if you choose step down as early as possible before common man takes law in hand.
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Jul 18, 2019 08:34am
Why would someone pay taxes if there's no fear of accountability? Doesn't make sense.
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Jul 18, 2019 08:40am
Stay steadfast Captain!! Do not budge to pressure and blackmail.
Nation especially the rich class has to pay their due tax and then Government is then more answerable on their use of tax payers money.
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Jul 18, 2019 08:42am
All these taxes will go to big boss establishment and repaying China debt.
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Jul 18, 2019 08:46am
You are the inefficient leader, Imran Khan, who said that the government of Nawaz did not have to give text. Today you are asking Imran Khan to pay taxes to the people.
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Jul 18, 2019 09:05am
Maybe someone can tell him to put taxes on air so that people are unable to breathe without paying!!!
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Jul 18, 2019 09:05am
Difference between developed and developing country is that of mind set... From self-centric to nation-centric
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Jul 18, 2019 09:06am
It is common belief that the amount of bribes sometimes exceeds the actual tax receipts. If PM makes a cell and create direct link to people to report bribes by tax man and allow these people to increase official tax payment by say 30% and no questions asked, we can reach the higher tax targets easily and without so much commotion. My worry is that his acts will deter businesses from genuine activities and the tax receipts can actually fall.
Other avenue is property tax, say at the rate of about 0.1% and gradually increasing it to 0.3%. And use this money to increase civic amenities.
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Jul 18, 2019 09:17am
The people of the country urge the prime minister of the country to enact laws to tax the income from agriculture sector which has remained untaxable ever since the inception of the country. Trillions not billions remain outside the tax net every year because no government dares touch this income for fear of antagonizing the powerful landowners lobby.
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Jul 18, 2019 09:22am
Businessmen do business. The PM should get out of the donation mentality. They will pay taxes if the government provides them with a conducive business environment. Right now no big businesses is interested in investing because of the toxic environment.
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Jul 18, 2019 09:27am
@Sohail, No institutions are the difference. We have no institutions.
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Jul 18, 2019 09:27am
You are the inefficient leader, Imran Khan, who said that the government of Nawaz did not have to give text. Today you are asking Imran Khan to pay taxes to the people
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Jul 18, 2019 09:45am
Dear PM sb. Please somehow explain how you maintain a 300 kanal palace when your own declared income is almost nothing. As a small businessman myself, I have paid more than 100 times tax what you paid before elections. But still I am the thief and you are the honest one. But please...keep preaching. Now all Pakistan in your container to stand on.
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Jul 18, 2019 09:52am
Businessmen never pay tax from their own. they increase prices and then pay tax.
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Jul 18, 2019 10:02am
Radical land reforms and heavy industrialization will also help in improving Pakistan's economy.
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Jul 18, 2019 10:53am
Cut Military Expenditure you have money for Everything. Pakistan is the only country in whole WORLD which has biggest Militry in size when Size is compared to its Population.
PAK does not need such a Big army for its 20Crore people. This is gives room for PAK to spend money on Social & Economic wellfares , Education & Health this returns good benefits to country in long run
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Jul 18, 2019 10:59am
Pakistan is one of the highest taxed countries in the world . We pay tax on everything from phone cards , petrol , cars , electricity, gas , food , etc . IK Needs to focus on exports , just setup tax free export zones in all cities
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Jul 18, 2019 11:00am
Follow the best international practices for collecting taxes. Recently, the Saudi Government introduced VAT (Value Added of 5% applicable to taxable supply of most goods and services. Initially, the Government gave enough time to all the establishments and businesses to register with the concerned Ministry and once this phase was successfully implemented, the Govt. started collecting taxes from common people. The Ministry has provided automated machines on all businesses including small grocery shops and keep complete record of sales and purchases. Therefore, instead of creating conditions of terror amongst the business community, it is better that the government make negotiations with the business community and create conducive atmosphere, in the first place, to register and document all the businesses and then go with the second phase of collecting taxes.
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Jul 18, 2019 11:37am
I am glad to see that the PM is attempting to increase the base for tax revenue.
All sectors of the economy should contribute their fair share of taxes, including agricultural sector. How about introducing specific percentage of tax to retire debt. This tax be eliminated when 75 percent debt has been cleared. Appeal to the people to donate funds to retire debt.
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Jul 18, 2019 11:50am
Firstly create an environment for business !!!!! no fairy tales
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Jul 18, 2019 11:54am
Many people will pay taxes in Pakistan if (1) They feel that the money collected will be used to develop the country and improve facilities for the citizens (2) FBR employees will not harass them (3) Government expenses appear to be in control
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Jul 18, 2019 11:57am
Why cant government make their own business to generate more taxes like PIA and Steel Mills and so many big business by government.
If the government cannot make profit from their own business how they can expect private business to make profit and generate taxes
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Jul 18, 2019 12:00pm
An urging towards the landlords who own thousand of acres of agricultural land and cultivate them to pay an income tax on their earnings will also be in order. Or is it still a taboo to raise any voices to bring them into the tax net?
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Jul 18, 2019 12:39pm
Rubbish !! He must concentrate on facilitating businesses. He is businessmen. rather !!
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Jul 18, 2019 12:40pm
PM should rather encourage businessmen to generate more economic activity. And that often requires lower taxes. It seems PM has no idea how economies work.
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Jul 18, 2019 12:46pm
@Sohail, Agreed but our country's problem is corruption. Nation is well aware that the tax money is pocketed by corrupt politicians and government officials and nothing is spent on masses. With such a corrupt system, you cant convince people.
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Jul 18, 2019 12:54pm
PM should cordially convince the people to realize their responsibility to the country.Tax payers will help the govt just according to their income.
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Jul 18, 2019 12:58pm
You are turning the country into the economic graveyard and asking businessman to generate more revenue.
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Jul 18, 2019 01:09pm
How long will he blame the previous government? Do people really generate taxes in response to speeches?
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Jul 18, 2019 01:28pm
Youngsters must become self styled entrepreneurs and generate employment for others not on the Govt...
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Jul 18, 2019 01:55pm
@Ishtiaq Khaliq, "You are turning the country into the economic graveyard and asking businessman to generate more revenue." He's not asking businessman to "generate" more revenue, but to pay taxes on the generated revenue. If they pay proper taxes, they will be able to "generate" more revenue for themselves, and to pay more taxes for the state. This is how economy works.
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Jul 18, 2019 01:59pm
@WayToGo, "Firstly create an environment for business." It is already created for the existing businessmen, that's why they make money. Now it is time for them to pay taxes so that the environment is created for the remaining population.
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Jul 18, 2019 02:07pm
PMIK how much tax did you pay on the Bani Gala house? Why the chairman of the FBR has been a tax defaulter for the past 3 years? What incentives do you offer the ordinary man apart from reducing spending on Education and Health and diverting it to buying land cruisers for your ministers in KPK?
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Jul 18, 2019 02:15pm
IK is here to take Pakistan out of economic misery and we all should help him to take our beloved country out of this vicious circle. Every trader, retailer and person has to pay tax and InshAllah , this money will be spent on every one of us. We need to build us as a nation.
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Jul 18, 2019 02:22pm
@abdullah, you’re right and we will all see that inspite of all the drama he’ll end up staying in the best and most expensive hotel in Washington. This man thinks he is the king of optics and maybe the Pakistani people don’t see through it but in any matured democracy he would have been spotted.
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Jul 18, 2019 02:25pm
IK cannot claim of reforming the FBR by mass transfers of the officials. The corrupt will remain corrupt even if they are transferred to the moon. Proper inquiry should be launched to disclosed the assets owned by the people in the FBR and the customs which is part of FBR. Even support from intelligence services should be taken to disclose assets owned by them and their family. IK is trying to further squeeze the ones already in the tax net without any reform or benefit for the business people.
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Jul 18, 2019 02:50pm
Like seriously just 300 companies paying tax while Pakistan has companies about 1 million working around of different scope and nature.business man if goes to strike,their non tax paying companies which are there,be seized and sold or confiscated and their legitimate businesses also brought under governament for causing damage to whole nation/society just for personal gains.
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Jul 18, 2019 04:35pm
No country can run without people paying their taxes honestly unless they're oil rich. Pakistan has a wealthy minority who should pay their taxes otherwise this country would keep on relying on financial aids!
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Jul 18, 2019 05:31pm
My dear Kaptan....... this is game of governing country is not game of cricket match. you are unfit and kindly step down before people go into more miseries of life. thank you.
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Jul 18, 2019 06:05pm
Asking the fox to guard the chicken coop? Sure, that's an original idea! PMIK has his heart in the right place, but perhaps he needs to recognize that businesses do not have the best interests of the nation at heart. They only have their own personal interests at heart that they place ahead of all other interests. What he can do is make the business world a flat level playing field for every single stakeholder. No barriers to entry and to exit, full transparency, no collusion, no monopolies, or oligopolies, strict adherence to law, and fair treatment to all. Ensure that there is no corruption of any kind at any point in the entire supply chain. Encourage new entrepreneurs to step up. Provide self-employment opportunities. Provide micro-credit to young entrepreneurs. Encourage them to step up to grow big. Warn existing players to behave themselves or face punishments. Monitor their behavior. Eliminate speculation. You will see a dramatic change in the economic environment.
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Jul 18, 2019 06:44pm
@abdullah, You have absolutely no idea - why dont you look on the facts about how much is spent. Stop being the PMLN rhectoric. Please tell me why Nawaz Sharief charged the people of Pakistan for his heart surgery and security when he is a rich man? He was to England for the operation while the common man has access to nothing.
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Jul 18, 2019 06:46pm
@Dare2liv , This is not correct - Pakistan only collects 9% if its GDP in tax. Compare that to 30 to 35% in the west
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