Pakistan

Eleventh hour: Ordinance imposes 15% tax surcharge

The surcharge applies only to income earned in fiscal year ending June 30, 2011.

Express May 31, 2011

ISLAMABAD:

Three days before the federal government is due to lay out its budget for the fiscal year 2011, the government has added a 15% surcharge on income taxes for the outgoing year, payable for the month of June.

Under a presidential ordinance approved in the early hours of Tuesday morning, the government announced that it would levy a 15% surcharge on 2011 income taxes. This surcharge applies to the amount paid in taxes, not the income itself.

For example, if a person owed Rs5,000 in taxes on an income of Rs50,000, they will now owe Rs6,500.

The surcharge applies only to income earned in the fiscal year ending June 30, 2011 and will not apply to taxes being paid on previous years’ incomes or even advance taxation for next years’ incomes.

The ordinance will apply only for the month of June 2011.

Published in The Express Tribune, May 31^st, 2011.

COMMENTS (37)

Faisal | 13 years ago | Reply Please let me know 15% add. surcharge will be deducted on June-2011 salary?

Iftikhar-ur-Rehman | 13 years ago | Reply @Bangash: In Pakistan nothing is ridiculous except the person himself who signed the ordinance

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Salman Zafar Lari | 13 years ago | Reply @Adnan Khan Nadeem: Yup.....

Bangash | 13 years ago | Reply How can a tax be taxed ?! Taxes are always on income and are deducted by calculating the tax rate for a given income bracket, so this 15% is increase in the tax rate for the income bracket. I have never heard of a tax upon tax, this sounds ridiculous.

Adnan Khan Nadeem | 13 years ago | Reply @Salman Zafar Lari: Sir, is this you from UBL ?

Khan | 13 years ago | Reply Suck sugarcane, enjoy the democracy, No comments, we all know it, who is enjoying

Asmat Jamal | 13 years ago | Reply FBR enjoy the loot along side PPP.

Salman Zafar Lari | 13 years ago | Reply This is again a harsh treatment with salaried class. Apparantly it seems that Government has no other sourse to increase its revenues but to tax salaried class and time will come when at the end of the month this class will only get salary statement in which taxable salary and tax deducted will be the same figure . Agriculture sector does not pay tax which consist more than 70% of our economy, service sector is not regulated hence no check and balance on tax receovery, failure of our government to impose RGST and increase tax base through other resources and lastly do our politicians pay taxes, these are few of the questions which really need to be answered. I was reading some where that irregularities of over 300bn were identified by auditor general of Pakistan in FBR. I think these are the issues which really need to be addreesed. I do agree with Atif Zain (above) that we infact have become a dead nation just compeleting our lives any how. May Allah help us.

Shamsi Ajanee | 13 years ago | Reply As per text of Gazette circulated by APP there is a typo mistake: In sec 4A(2) : word used is EDUCATED instead of DEDUCTED. But I guess our President signs what he gets on his table especially Ordinance Three days before the assembly session and one day after he calls for assembly session

pappu | 13 years ago | Reply Democracy is the BEST revenge. Take it.... :D

General Zia Ul Haq | 13 years ago | Reply This is technically unlawful because it has been given retrospective effect, but I don't think this will have an effect on salaried class as they are taxed directly and this can only apply to businesses who pay delayed tax, e.g. corporations, self employed etc.

Meekal Ahmed | 13 years ago | Reply I share the angst of everyone above. This is really dumb.

Atif Zain | 13 years ago | Reply WOW...they still tried to get 15% more from my pocket as they now I am going to do nothing or if I dare to do then no more then a blog or facebook comment. We are dead people and we are paying them for our deadly respect. May ALLAH awake our sleeping humanity and self respect.

Adnan | 13 years ago | Reply Ridiculous! Still no agri tax. But you continue to squeeze us poor salaried calss people - the only one you can get your hands on. This is another example of blind, lawless governance. First put the country to shame with your policies, let mayhem and violence run loose throughout so no one has the basic right of security, and then squeeze the remaining poor so much that they die of starvation unless they commit suiicide with their children. ENOUGH IS ENOUGH! isnt there a single, sensible leader amongst 160 million people who can stand up ??? Shame on us to let this happen to ourselves.

Adnan Khan | 13 years ago | Reply This government has only one motto: Tax KHAPPAY ! Corolla KHAPPAY !

Saif | 13 years ago | Reply Well..You produce your own electricity, you buy water, you buy security and on top of that you pay taxes..what crap

Nadeem Akhter | 13 years ago | Reply This is nothing but to add more burden on the existing tax-payers. The government instead of broadening the base is putting additional burden to the law abiding citizens. The surcharge is simply unacceptable.

Hassan | 13 years ago | Reply Enjoy Democracy and its revenge, till everyone comes out and boots these animals out things wont change for us.

whatever! | 13 years ago | Reply Whats the source? This 15% surcharge has been levied since Mar 17, 11. Whats the difference? Seems like a failed news article to me with erroneous calculations.

Iftikhar-ur-Rehman | 13 years ago | Reply NOW I know who were those new 700,000 potential tax payers the Finance Minister was talking about!!!!

tax payer | 13 years ago | Reply @Amir: "do not worry and be happy'' anything can happen and can be done in Pakistan-

Arsito | 13 years ago | Reply This is just like robbery at gun point. Pak elite be damned.

Tric | 13 years ago | Reply What do i get after paying tax on taxes? Insecurity, lawlessness, inflation and unemployment.

Sam | 13 years ago | Reply 5% being paid by the known political leaders of Pakistan and income tax is imposed on the salaried class. I'm in such anger that I cant find words to write. I have given more taxes in my life than I have saved; such is the economic condition you people have provided. I curse you for all that you have not given against the taxes recieved by us and may Allah SWT may judge you against it.

Haris | 13 years ago | Reply Ridiculous!!!

Aalia | 13 years ago | Reply The math has been done incorrectly. A 15% surcharge on Rs.5000 tax is Rs 750 more; therefore the tax paid will rise to Rs 5750.

Aamir Shahbaz ACA | 13 years ago | Reply What the hell is the matter with this Government. Now is this Surcharge seperate from Flood surcharge? how it shall be assessed? how the return shall be filed for this year? They are just here to make a mess of everything.

Yasir Khokhar | 13 years ago | Reply What the heck. Im burdend with massive inflation, have paid flood surcharge - that I dont know made its way to needy or not. Some how surviving with the rise in electricity and fuel tariff. Have been paying the regular Income Tax for the current year and all of a sudden an additional 15% surcharge. Where was this surcharge last night. You wake up in the morning and get a message, Congratulations, your income has shrunk by 15%" This is really absurd. Go for RGST, AGST, BGST, CGST, all the GSTs you got, leave us for God's sake. We are already neck full of taxes.

qaisera | 13 years ago | Reply this is cheating

Preshanhal | 13 years ago | Reply It is very unfair and ruthless. Please take everything that is given to me in the return of taxes and give me my money back. I need money to feed my children.

YAffgfg | 13 years ago | Reply what is the purpose of this tax ??? Is this the flood tax payable for last fiscal year ?? who will get this amount ?? everyone knows.

YA | 13 years ago | Reply what is the purpose of this tax ??? Is this the flood tax payable for last fiscal year ?? who will get this amount ?? everyone knows.

Noore Jehan | 13 years ago | Reply May hell fall on the most corrupt coalition government of PPP-Z,MQM,ANP,ML-Q for destroying the poor,safaidposh,honest salaried class.Now imagine the year 2011-2012 would be.Every month tyranny of new taxes,lies,deception,blackmailing MQM style by all and horrendous corruption as the election year approaches.

Farooq | 13 years ago | Reply how can you levy such surcharges through an ordinance? are there any laws in this country? When will the agri income be taxed???

imran yousuf | 13 years ago | Reply what !!!! another nail in the coffin of the salaried people.The business community pays no income tax,why do we have to suffer all the taxes? Why didn't the govt. levy the RGST? RGST should definitely be imposed to bring the millions of shopkeepers & retailers in our country into the tax net.Why is our govt. so afraid of imposing RGST? The traders of our country have been given a free hand to evade taxes in this country.They don't have any NTN's made,they've never filed an income tax return.The industrialists always show themselves to be in loss so this new tax would not affect them,it's only the salaried class with their fixed incomes who'll have this barbaric tax deducted from its incomes at source. The big factory wallahs & dukandaars will once again get away without paying any tax.

Haider Hussain | 13 years ago | Reply This is how they're supposed to increase tax revenue? What a bunch of crack-heads!!!

Amir | 13 years ago | Reply 15% of 5000 is 750 , hence the new tax is 5750 and not 6500 as mentioned. It takes only few seconds of check such things, certainly not expected from a partner of "International Herald Tribune"

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