Revenue collection : Lahore traders paid over Rs38.57b in taxes

Some markets earning in trillions only added a few hundred thousand rupees to the national kitty

LAHORE:

Taxpayers have paid over Rs38.57 billion from across 58 markets of Lahore in the current financial year. Meanwhile, some of the major markets in the city, which have an annual turnover of several trillion rupees, have deposited only a few hundred thousand rupees in the national treasury.

The traders of the market at Multan Road, Lahore, have deposited Rs10 billion in tax returns. According to the latest figures released by the Federal Board of Revenue (FBR), only nine of the 58 markets paid more than Rs1 billion in taxes. On the other hand, 395 taxpayers from some of the major markets paid a total of only Rs108,000.

In many markets, shops conducting businesses worth trillions of rupees a year have paid very little tax. For instance, 39 traders from Y Block of Defence Lahore, which is considered an elite-class area of the city, have only returned Rs5,270,490. Around 297 traders of Y Block Lahore have paid taxes worth Rs248,050,758, while some 10,967 shopkeepers of Wapda Town Lahore paid Rs 1,632,044,367 in taxes.

Similarly, about 1,920 taxpayers from Urdu Bazaar, who have an annual turnover of billions of rupees, paid Rs338,751,853 in taxes.

According to the tax report by the FBR, some 7,635 shopkeepers of Township Market paid taxes worth Rs113,190,251, about 174 shopkeepers of Sarafa Bazaar, the largest gold market of the city, have paid Rs2,354,963. However, the ability to pay tax in terms of turnover in this sector is said to be many times higher.

About 890 shopkeepers of Sabzi Mandi paid taxes worth Rs 93,813,030, some 64 shopkeepers of Naulakha Bazaar paid taxes worth Rs14,296,182, about 120 shopkeepers of Shopping Mall Lahore paid Rs184,531,710, and 11 shopkeepers of Paan Gali Bazaar paid Rs739,561.

Speaking to The Express Tribune, the leader of Anjuman-e-Tajiran Pakistan Naeem Mir said that the business community should pay advance taxes in addition to the annual return. “The FBR did not provide us with any reports. Traders pay their taxes regularly even when the circumstances do not allow, for instance, during the coronavirus outbreak as well as during national disasters. Despite that, there are no facilities available to traders,” he said.

Mir added that traders in the markets pay other duties and utility bills besides taxes.

According to economist Anam Naeem, the FBR should take steps to increase the tax rate in the country by looking for new taxpayers.

“The country’s business is run only with the help of tax revenue and serious action should be taken in this regard to increase the tax collection rate following the Gross domestic product (GDP).

 

Published in The Express Tribune, Septe0mber 28^th, 2020.