Doctor’s Recipe for Jumpstarting Pakistan’s Economy

Dr. Ikram ul Haq’s doctrine for:

i) Fast track jump in FBR’s tax revenue to PKR 8 trillion per year (Income tax PKR 5 trillion & Sales Tax PKR 3 trillion).

ii). FBR should get 100 million registered as taxpayers before June 2021, out of that 20 million have taxable income.

iii) Refund of about PKR 70 billion from FBR to masses on account of unlawful advance income tax collected in cell phone bills will create huge goodwill in the masses about the PTI government.

FBR should register 100 million as taxpayers before June 2021, out of that 20 million have taxable income. By bridging tax gap [out of 2.4 million return received by FBR till today, 1.5 million declared NIL income], we can reach the figure of Rs. 8 trillion (Income tax Rs. 5 trillion and sales tax Rs. 3 trillion). FATF requirement of comprehensive data will also be met to come out of grey list. If Imran Khan pays back refunds of 12.5% of 80 million adults [having non-taxable or NIL income] who paid advance and adjustable income tax of 12.5% tax as pre-paid or post-paid mobile, PTI will get sure victory in next elections. 80 million having income less than Rs. 400,000 will get refund of about Rs. 70 billion for tax years 2019 & 2020 alone as total withholding under this head was Rs. 102 billion as per FBR Year Book for 2019-20 and 2018-19. Pakistan will have data of all 100 million adults—already verified through biometric and having mobile connectivity. Refund to them will be a great gesture of helping those earning no income or income below taxable limit in COVID-19 endemic.
Step 1: FBR to compulsorily register all 100 million mobile users.
Step 2: SMS message to them giving username and password to upload or update profile on FBR’s website answering just 4 questions:

A. Dependent or head of family as per NADRA record. If head number of dependents.
B. Self employed or salaried person [salaried person to write name of employer]
C. If self employed the nature of businesses or profession and address of business.

4. Annual net income from all sources
   On the basis of above we will have National Socio-Economic Registry of households.
   *Those having taxable income but never filed income tax return and sales tax statement should be facilitated to file simple and easy one-pager tax return having declaration of gross sales or receipts, as the case may be, made available both in English and Urdu. Those living in areas where internet is not available can take help of Post Office nearby or a person having 3G/4G service of any mobile company to fill simple declaration. *It will help in documentation of all households and their earning levels at national level by matching family-tree data available with NADRA. Individuals earning below taxable limit should be paid Income support (negative tax) till the time the State provides them employment and not keep them beggars for life*. Those not registered as voters will be helped through ECP to become voters.
   30 March 2021

Tags: Pakistan