Taxation in Pakistan

Taxation

An aspect of fiscal policy
Policies Government revenue Tax revenue Non-tax revenue Tax law Tax bracket Tax threshold Exemption Credit Deduction Tax shift Tax cut Tax holiday Tax advantage Tax incentive Tax reform Tax harmonization Tax competition Double taxation Representation Unions Medical savings account Tax, tariff and trade
Economics Price effect Excess burden Tax incidence Laffer curve Optimal tax Theory Optimal capital income taxation
Collection Revenue service Revenue stamp Tax assessment Taxable income Tax lien Tax refund Tax shield Tax residence Tax preparation Tax investigation Tax shelter Private tax collection Tax farming
Noncompliance Tax avoidance Tax evasion Tax resistance Tax haven Smuggling Black market Transfer mispricing Unreported employment Tax shelter
Distribution Tax rate Progressive Regressive Proportional
Types Direct Indirect Per unit Ad valorem In rem Capital gains Carbon Consumption Dividend Ecotax Excise Fuel Georgist Gift Gross receipts Income Inheritance (estate) Land value Payroll Pigovian Property Sales Sin Single Stamp Steering Turnover Value-added (VAT) Corporate profit Excess profits Windfall profits Negative (income) Flat Wealth
International Financial transaction tax Currency transaction tax Tobin tax Spahn tax Tax equalization Tax treaty Permanent establishment Transfer pricing European Union FTT
Trade Custom Duty Tariff Import Export Tariff war Free trade Free trade zone Trade agreement
Religious Church tax Eight per thousand Teind Tithe Fiscus Judaicus Leibzoll Temple tax Tolerance tax Jizya Kharaj Khums Nisab Zakat
By country List of countries by tax rates Tax revenues as %GDP Albania Algeria Argentina Australia Azerbaijan Bangladesh Bhutan Bulgaria Canada China Colombia France Germany Greece Iceland India Indonesia Iran Ireland Israel Italy Japan Kazakhstan Lithuania Malta Namibia Netherlands New Zealand Norway Pakistan Palestinian territories Peru Philippines Poland Russia Singapore South Africa Sweden Switzerland Tanzania United Kingdom United States Uruguay

Pakistan's Current Taxation system is defined by Income Tax Ordinance 2001, promulgated on 13 September 2001, which became effective from 1 July 2002.

History

Income Tax Act of 1922

Income Tax Act of 1922: prevalent in the British Raj and was adopted by the Government of Pakistan as its Income Tax Law.

Income Tax Ordinance (1979)

The Income Tax Ordinance was the first law on Income Tax which was promulgated in Pakistan from 1 July 1979 by Government of Pakistan.

Income Tax Ordinance 2001

To update the tax laws and bring country's law in accordance with international standards, Income Tax Ordinance 2001 was promulgated on 13 September 2001, which became effective from 1 July 2002.

IT rules 2002

IT rules 2002 were promulgated by FBR on 1 July 2002 in exercise of powers granted under section 237 of the Ordinance.

Problems

Taxation in Pakistan is a complex system of more than 70 unique taxes administered by at least 37 agencies of the Government of Pakistan.^[1]

According to the International Development Committee, Pakistan had a lower-than-average tax take. Only 0.57% of Pakistanis, or 768,000 people out of a population of 190 million pay income tax.^[2]

Federal taxes

Federal taxes are administered by the Federal Board of Revenue.

Corruption

Further information: Corruption in Pakistan

According to a 2002 study, 99% of 256 respondents reported facing corruption with regard to taxation. Furthermore, 32% of respondents reported paying bribes to have their tax assessment lowered, and nearly 14% reported receiving fictitious tax assessments until a bribe was paid.^[3]

References

↑ Horrigan, Kevin (2010-09-26). "Take a lesson from Pakistan: Taxes are for suckers". Saint Louis Post-Dispatch. Retrieved 2010-11-07.
↑ http://www.bbc.co.uk/news/uk-politics-22017091
↑ "Nature & Extent of Corruption in the Public Sector" (PDF). Transparency International–Pakistan. 2002. Retrieved 2010-11-07.

Economy of Pakistan

History	Numbering system Five-Year Plans Nationalization Privatization Corporatization Fauji Foundation Islamic economization Economic liberalization Medium Term Development Framework Periods of stagflation

Banking and finance	Banking (List of banks) Pakistan Remittance Initiative

Communications	Currency Mailing Postal codes Postage stamps Telecommunications Dialing codes Internet Mobile network operators Telephone numbers Pakistan Remote Sensing Satellite

Transportation	Airlines Airports Bridges Motorways National highways Railways Railway stations Ports Vehicle plates

Industry	Aerospace Agriculture Fishery Livestock Rice production Tea Defence Automotive Books and publishing Cottage and small scale Forestry Information technology Insurance Mining Media Cinema Television Music Pharmaceuticals Real estate Textiles (Carpets and rugs) Silk Tourism Medical tourism

Infrastructure	Buildings Education Schools Universities Healthcare AIDS Hospitals Housing Poverty Science and technology Water supply and sanitation (Dams) Water resources management

Energy	Electricity Fuel extraction Nuclear power Policy Power companies Power stations Renewable energy Solar power Wind power

Taxation	Federal Board of Revenue Tax on cash withdrawal

Institutions	Companies Islamabad / Karachi / Lahore stock exchanges Ministry of Commerce (Ministers) Ministry of Finance (Ministers) National Bank of Pakistan Planning Commission Research institutes Securities and Exchange Commission State Bank of Pakistan (Governors)

Society	Billionaires Businesspeople Demographics Labour force (Child labour) Public holidays Urbanisation Pensions

Domestic economies	Azad Kashmir Balochistan FATA Gilgit-Baltistan Islamabad Khyber Pakhtunkhwa Punjab Faisalabad Lahore Rawalpindi Sindh (Karachi)

See also	Central business districts Foreign aid Foreign trade International ranking Investment in Pakistan Sister cities Provinces by GDP Pakistanis by net worth Politicians Standard of living

Category

Taxation in Asia

Sovereign states	Afghanistan Armenia Azerbaijan Bahrain Bangladesh Bhutan Brunei Cambodia China Cyprus East Timor (Timor-Leste) Egypt Georgia India Indonesia Iran Iraq Israel Japan Jordan Kazakhstan North Korea South Korea Kuwait Kyrgyzstan Laos Lebanon Malaysia Maldives Mongolia Myanmar Nepal Oman Pakistan Philippines Qatar Russia Saudi Arabia Singapore Sri Lanka Syria Tajikistan Thailand Turkey Turkmenistan United Arab Emirates Uzbekistan Vietnam Yemen

States with limited recognition	Abkhazia Nagorno-Karabakh Northern Cyprus Palestine South Ossetia Taiwan

Dependencies and other territories	British Indian Ocean Territory Christmas Island Cocos (Keeling) Islands Hong Kong Macau

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