Sahar Ahmed in Reuters: Pakistan will impose a flood surcharge of 15 percent on income tax in order to tackle the country's widening budget deficit, a government source involved in talks with the IMF said on Wednesday. "Yes, we plan to impose the flood surcharge," the source told Reuters, declining to give details of when the surcharge might be levied.Pakistan, whose tax-to-GDP ratio is around 10 percent, one of the world's lowest, is trying to show the IMF and other donors that it is working on ways to boost revenue. The country is dependent on foreign aid, and riven with political instability and violence. On Wednesday, gunmen shot dead the only Christian in Pakistan's government, the second top official killed this year for questioning a law that mandates the death penalty for insulting Islam.
The struggling government, still contending with damage from disastrous floods last year, is desperate to raise money. According to news reports, as well as the flood surcharge, it plans to increase a special excise duty by 150 percent soon after a National Assembly recess….
1 comment:
Imposing 15% tax on people who are already paying taxes. Why not collecting the taxes from people who are avoiding the taxes, like Nawaz Sherif, and Zardari, and all corrupt leaders and land lords. Thats the way to fill the gap, not to impose more tax to the honest hard working people. No wonder the country is where it is, it's running by dumb people
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