Young cheats: Almost 50% of tax dodgers below 35 years of age
Nearly five out of every 10 identified tax dodgers are between 18 and 35 years of age, while one out of every 10 of the evaders is a woman, according to official statistics.
Karachi hosts the maximum number of tax evaders, while traders make up the biggest group of those who earn millions, own multiple houses and expensive vehicles, maintain many accounts and spend significant time abroad while avoiding paying a rupee to the exchequer.
The statistics also show that almost two-thirds of the identified people use advanced business models.
The Federal Board of Revenue (FBR) and the National Database and Registration Authority (NADRA) have for the first time identified and grouped over 2.4 million tax dodgers, according to their age groups, sex, geographical background and professions.
Almost 60% of the 2.4 million have a two-member family, while 317,429 have more than five-member families. According to census and data, wealthy people like to have small families.
Also featuring in the list of evaders are 735,212 people who have remained taxpayers but have exited the system through corrupt FBR officials. However, this figure has not been used in working out the percentages in various categories of evaders. Salaried individuals and withholding agents have not been added to the list either.
According to official figures, as many as 2.2 million or almost 90% of the 2.4 million men and 240,292 (10.2%) women willfully evade taxes.
The government will provide the tax dodgers one last opportunity to avail the tax amnesty scheme before resorting to coercive measures.
Age groups
Ten percent or 242,640 indentified people are between 18 to 25 years of age; 465,549 or 20% are between 26 to 30 years of age and 393,850 people or 17% are between 31 and 35 years of age. This shows that 47% of the total evaders fall between the ages of 18 and 35, indicating the trend of transferring assets to offspring, a common practice among politicians and the industrialists in the country.
As many as 897,242 individuals or 38% are between the age group of 36 and 50 years. Fifteen per cent or 355,744 people fall in the age group of 36 to 40, while 285,409 or 12% are of 41 to 45 years of age. Eleven percent or 256,089 individuals are aged between 46 and 50 years.
In the elderly group of 51 to 60 years, as many as 360,546 people or 15% have been identified.
Top 10 cities
Karachi hosts 326,144 or 13.8% of the identified people followed by Lahore with 238,050 people (10%), Rawalpindi with 117,639 people (5%), Faisalabad with 101,422 people (4.3%) and Sialkot with 97,391 people or 4.2%.
The rest are residents of Gujranwala, Gujrat, Multan, Peshawar and Islamabad.
Top 10 professions
The maximum numbers of evaders, 62,779, are traders by profession, followed by contractors (36,270), importers-exporters (17,853), general-store wholesalers (13,531), jewellers (10,728), small industry owners (10,105), construction industry owners (9,569), doctors (9,330), travel agents (5,426) and owners of filling stations (3,766.)
Published in The Express Tribune, November 13th, 2012.
COMMENTS (31)
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@Ahmed Jamal Pirzada: It is a free world. You can pay taxes to bankers abroad for loans doled to corrupt government. I will be happy to pay tax amount to the needy and contribute to society myself.
62% of Pakistan's population is below the age of 24 years. Plus unless FBR/NADRA shares what is the criteria of inclusion/exclusion it is difficult to appreciate the numbers being given.
People need to pay their proper share of taxes irrespective of source of income or age or profession
@Jewcifer: wat you r really saying is: why pay the taxes and not share in the sins? after all we all have a right to robb this country. y only the rulers? ryt? sad.
@p r sharma: Somehow there is a misconception that taxes goes to public works. Government pay the international bankers via taxes. For public works there is tariffs, duties, tolls, etc.
Well, we deviate from Islamic teachings and created permanent markets for buying and selling goods. We also taxed the trade which is supposed to free, in direct violation of Prophet SAW sayings. So I accept this as punishment till we get rid of it.
There are many wealthy people in Pakistan not paying their taxes, can you go after them first please?.
But...What do I get in Return after reaching age Sixty? Pakistan Income Taxation is Unfair for Elderly. I ask the Prime Minister and the President as well as those chosen to the supreme body to look in the matter and give a money return to Income Tax Return Filers. Heck, We contribute in form of Taxes and file Income Tax Return every year the Citizen of Pakistan must be Honored.
Pakistan has a bright future.
Please vote for pti and imran tiger khan to save Pakistan he will increase tax revenue as promised
Agree with Haris Khan....Perhaps some statistics about how many 18-35yr olds are actually earning would have made the FBR argument carrry some weight.
I would not be surprised if NADRA & FBR conveniently forgot to check how many of the youth have their TAX deducted by the employers and paid directly. Does not mean they are tax dodgers,,
Most of these tax 'dodgers' have less than 10y experience, their entire salaries combined would be less than all the politicans put toeghter..... ridiclous to assume that these kids are being targeted when big fish remain free to lord over us
@Ali We get our Taxes deducted from our salaries!! Besides all of you claim that youth isn't only supporting PTI!!! So you have your share of cheats too!!
This young 50% category must have learnt from the older 50%. Who should we blame?
Very soon this Greedy Govt will announce that College students should also start paying Taxes
Expect It
Now Mr. Hakeem has brought the news item to highlight himself in the media to show his work – the misleading statistics for the people of Pakistan. In continuation of his earlier news item when he issued notices to three of famous cricketers for serving them tax evasion charges, but no follow up news that how much tax was collected from them, and interestingly, theses three are almost in the same age group. It is just an attempt by the FBR chief to show that he is working, but someone says that you are judged by the results you produced, so let us see, how much direct tax he might be able to collect from these identified so-called tax evaders and actual tax evaders. Only one attempt we found recently when they put an indirect tax on the overseas Pakistanis on their telephone calls they are making to their homeland, the easiest way to churn money from them, otherwise nothing else.
@Khurram:
Nice comment :)
Today what ever Pakistan is; Its only because of PTI. Terrorism, only PTI, worst economic situations, only because of PTI, natural calamities, only because of PTI, and the list goes on. Ager ajj PTI na hoti, Pakistan jannat hota, jaisay pehlay tha............ha ha, amazing arguments...yai jo 20 crore hain, zindagi ka roogh hain.
Legality of taxes & legitimate expenditure need to be sorted out first. Taxation is theft, it has been said. Gov doesn't produce anything! How is the money spent? Who should be paying for the Circular dets, odious loans, KESC, PIA, PSO, WAPDA, gov....... debauchery?
Taxes have to be paid. Period. Whether Govt is corrupt or not. That is adifferent issue and can be discussed separately. Fbr should show some action. They must catch some big fish and confiscate their properties and sell it in public auction to show the other big peoples that they mean business.they should freeze their accounts and put them in jail for the next 30-35yrs. In usa they can put you in Jail for rest of your life . Time for these polite schemes of SHAME And BLAME is gone. No govt can work with out taxes. Start from the very rich people and set the example for medium income people.
somehow this is hard to believe. Most young people are likely salaried workers. taxes are cut from their wages directly, which is what was happening with my salary when i was in Pakistan. Its the property owners and industrialists who must make up a hefty percentage of tax evaders.
This is a misleading article. 90% of Pakistan's wealth is hoarded by less than 2% Pakistanis. The number of people that are outside the tax network does not matter. The number of Rupees that are outside of it is what matters. The entire article does not make any mention of how much taxable income corresponds to youth under the age of 35. The comments reflect how gullible the people are in being misled.
@Jewcifer: "Why pay a corrupt government and share its sins?"
Then by this logic those who opted to choose this government are equally responsible for the sins of the ruling coalition. You must be knowing that while purchasing any goods or services you are also paying sales tax/ VAT excise duty which goes to government exchequer. Wow you are a contributor in their sins, What will you do now?.
@ahmad: And you are part of that age group too.
NADRA and FBR, the 18-35 year age group you have mentioned have no tax returns because they still waiting for their first job!
What about the budhay politicians and there chamchay, which categories they alk belong?
Why pay a corrupt government and share its sins?
Great. It means our Young Guns are ready to fuel bright Future for our land and If UN will award any country for Real Con Artists then we will be the winners in that category besides we will be chanting that we are the only self Righteous People God have ever produced in the universe. That is why it is said " Kaotoray Pai Katora Beta Baap sai Bhi Gora".
They are the youth pti wants. They belong to PTI 's revolutionary squad.....lol's