Scribd Logo
Upload

Welcome to Scribd!

  • 24 views

    Take-Home Salary To Take A Hit Thanks To New Income Tax Brackets

    Uploaded by

    Ijaz Ali
    1) The document discusses concerns with Pakistan's new taxation measures, including that they will negatively impact the poor and middle class without providing evidence that stabilization will lead to equitable growth. 2) It argues the government has not shared plans for how stabilization will transition to growth and there is valid skepticism given past failed attempts. 3) It also raises issues with the tax system historically not taxing all segments uniformly and giving rebates to powerful lobbying groups while now increasing taxes on those who have been honestly paying without addressing equity concerns.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Take-Home Salary To Take A Hit Thanks To New Income Tax Brackets

    Uploaded by

    Ijaz Ali
    24 views1 page
    1) The document discusses concerns with Pakistan's new taxation measures, including that they will negatively impact the poor and middle class without providing evidence that stabilization will lead to equitable growth. 2) It argues the government has not shared plans for how stabilization will transition to growth and there is valid skepticism given past failed attempts. 3) It also raises issues with the tax system historically not taxing all segments uniformly and giving rebates to powerful lobbying groups while now increasing taxes on those who have been honestly paying without addressing equity concerns.

    Original Description:

    3

    Original Title

    Taxation Measures3

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) The document discusses concerns with Pakistan's new taxation measures, including that they will negatively impact the poor and middle class without providing evidence that stabilization will lead to equitable growth. 2) It argues the government has not shared plans for how stabilization will transition to growth and there is valid skepticism given past failed attempts. 3) It also raises issues with the tax system historically not taxing all segments uniformly and giving rebates to powerful lobbying groups while now increasing taxes on those who have been honestly paying without addressing equity concerns.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    24 views1 page

    Take-Home Salary To Take A Hit Thanks To New Income Tax Brackets

    Uploaded by

    Ijaz Ali
    1) The document discusses concerns with Pakistan's new taxation measures, including that they will negatively impact the poor and middle class without providing evidence that stabilization will lead to equitable growth. 2) It argues the government has not shared plans for how stabilization will transition to growth and there is valid skepticism given past failed attempts. 3) It also raises issues with the tax system historically not taxing all segments uniformly and giving rebates to powerful lobbying groups while now increasing taxes on those who have been honestly paying without addressing equity concerns.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    6/15/2019 Taxation measures - Newspaper - DAWN.

    COM

    is unfair even to the poor who, though they did not have to pay income tax, have been paying all
    sorts of indirect taxes throughout. How do we trust that the ‘sacrifices’ the people are being
    asked to make now will matter?

    The other side of this is that the government needs to give us a plan of how stabilisation will lead
    to sustained and equitable growth. This is very important, but has been completely missing. We
    do not have such plans. These plans are not a part of the budget, but PTI should have shared
    with the people how stabilisation will transition to growth. The finance adviser made the
    statement a few weeks ago that such a plan would be shared soon, but it has not happened as
    yet. Again, scepticism on this issue, especially given our history of failed attempts, is warranted.
    The PTI is not doing a service to itself and the people by not sharing its plans for a transition.
    The fear is that they might not have such a plan. This would be quite damaging.

    And there is the issue of equity as well. People who are in the tax net and/ or who have been
    paying their taxes feel, quite strongly and rightly, that the state, due to its elitist structure and
    other reasons, does not tax all people as it should and does not give benefits as it should.
    Historically, it has left large segments of the population out of the income tax net: traders,
    agriculturalists and most service providers. It has given rebates and subsidies to other powerful
    groups (sugar, automobile and textile lobbies etc). It has also given amnesties to those who have
    looted the country, and continues to do that. It has created rules and regulations, on foreign
    remittance transfer, real estate ownership and transfer, and even import/ export, to facilitate the
    more powerful groups. And there is no evidence that any of this is changing. For example, why
    was a health tax not imposed on tobacco even in this budget?

    Explain all of this to those who have been honest taxpayers — who, by default or design, by
    desire or necessity, have been paying through all regimes: tough and not-so-tough.

    And now, we are back to the tough regime again. Income tax rates have gone up and the income
    exemption threshold has been reduced. This, when there has been inflation of 10 per cent odd
    already, and about the same is expected next year. The sales tax regime has also been extended
    to many more products and services. Prices for electricity and gas have been rising and are
    slated to go up further. What should people hope for?

    Read: Take-home salary to take a hit thanks to new income tax brackets

    If the PTI wants the people to really believe that all this is for their good, it needs to address
    some of the concerns mentioned above. Otherwise, people will be quite right in thinking that
    they are in the hands of clueless drivers and navigators who have no idea of where they are going
    and where they are taking the rest of the nation as well.

    The writer is a senior research fellow at the Institute of Development and Economic
    Alternatives, and an associate professor of economics at Lums, Lahore.

    https://www.dawn.com/news/print/1488117 3/4

    You might also like