GROWTH IN TAX COLLECTION

In acknowledgment of the tax news items issued in some sections of the press about tax news revenue, the Federal Board of Revenue has explained that it has received a record Rs.2407 Billion in the first seven periods registering an improvement of 17% over last year’s collection of Rs.2062 Billion. This growth has been recorded despite the US $5 billion concentrations in imports. Last year according to tax news FBR collected income tax, sales tax, and customs duty at the import stage amounting to Rs.1005 Billion, which has only grown by 6% to Rs 1066 billion, resulting in the tremendous detrimental impact on customs duty and income tax raised at import boards. On the other hand according to tax news, the private collection has developed from Rs.1066 billion last year’ to Rs.1341 billion this year, is showing an unusual increase of 27%. The aforementioned massive growth has been made viable by the constant struggles of FBR despite the economic slowdown and without using any coercive action. It is hoped that with upcoming tax news about financial turnover linked with shots of FBR will strike very close to its specified objectives.

INCOME TAX:

According to tax news, Withholding is an act of deduction or collection of tax at source, which has generally been like an advance tax payment. It is a useful tool and a critical source of revenue. Their contribution is about 41 percent of the total direct tax revenues as per tax news.
Under the repealed Income Tax Act, 1922, the tax was deducted from two primary sources of income, namely, salaries and interest on securities. According to tax news over the period, withholding Tax net was reached, by steadily introducing different Requirements in the Tax Laws. The revoked Income Tax Ordinance, 1979, made in all the provisions of the Income Tax Act, 1922. However, according to tax news, in the 1990s, withholding tax net was significantly expanded by providing for withholding tax on a broader variety of activities and making most of them likely. Requirements of the Income Tax Ordinance, 2001, are more or less the same, except for a few changes and additions. Applicable withholding requirements link to salary, imports, exports, performance and brokerage, dealing, liabilities, profit on debt, utilities, vehicle tax, stock exchange-related plans, and non-residents, etc., according to varying rates. According to tax news, about 75% of tax revenue is obtained by indirect taxes and 25% received by direct taxes in Pakistan. Indirect tax is the concern with goods and services rather than on income or profits. While direct tax, before-mentioned as income tax, which is gathered on the income or earnings of an individual and companies.

THE ADVANTAGES OF GROWTH INCOME TAX:

Taxation is one of the fundamental functions of government and a matter of life for taxpayers that require agreement and proper plan. As per tax news income tax, property expense, and sales expense all overcome how much money consumers have to save or spend. Business taxes place some of the burdens on commercial enterprises, but whatever the cause, tax dollars go toward some of the same objectives.

WEALTH REDISTRIBUTION:

According to tax news, the wealth between taxpayers and individuals who receive government assistance. Taxes like the federal income tax are increasing taxes, which means that wealthier taxpayers pay a higher proportional amount of taxes. For those who support progressive taxation, this type of charge helps to develop greater financial and social equality in society. The benefit here is that the wealthiest taxpayers help pay for programs that support lower-income and middle-class citizens, while also providing the necessary services that all taxpayers have equal access to. This is one of the significant advantages of growth income tax. These are the same plans and services that make it possible to manage wealth in the first place.Some taxes only apply to certain products, which has the benefit of reducing or controlling consumption. For instance, state charges that only utilize alcohol and cigarettes help to decrease their use. State gasoline taxes help lessen the need for gas and keep the international market for oil in sign, while also defending the surroundings from over consumption.