Are You Sick of Taxes? Here’s Another One!

Few days ago we wrote about 1.5 percent increase in withholding tax on telecom services, in response to which we witnessed the maximum possible protest from mobile phone users.

Well, that was just 1.5 percent tax, on a service you use, which you can save if you don’t use the service at all, but just imagine if at once you have to pay a new tax, in the name of “Flood Surcharge”.

Based on information we are getting, all public/private sector employees are going to pay 15 percent of their tax liability to the Government as tax.

What country is this? Who is running it? and with what aims? A totally un-comprehendible step, I mean look at the inflation and they are asking for further cuts?

This is even more distressing when we see our political leaders paying their taxes in mere rupees, in fact few of politicians don’t pay taxes at all.

Check few stats below (according to Nadeem Malik of Aaj TV)

  • Mr. Gillani paid Zero Rupee as Tax
  • Mr. Shahbaz Shareef paid Zero Rupee as tax
  • Ameer Haider Khan Hoti Paid Zero Rupee as Tax

We believe Pakistanis are severely tested and bread limit is about to be reached.

Cellular companies (along with other sectors) are sending following email to their employees, have a look;

From: Human Resource Division
Sent: Thu 3/31/2011 4:13 PM
To: All Employees
Subject: Implementation of 15% Flood Surcharge

Dear Family Members,

Consequent to the promulgation of Income Tax (Amendment) Ordinance, 2011 an additional amount of flood surcharge @15% will be deducted from salary against income tax payable pertaining to the income for the period from 15th March, 2011 to 30thJune, 2011.

Hence a prorated surcharge for 17 days has been deducted from March, 2011 salary and full months surcharge will be deducted from the salary for the months of April, May & June,2011.

Surcharge payment procedure issued by FBR is attached for your reference or you may visit to www.fbr.gov.pk for further details.

HUMAN RESOURCES DIVISION

Tech reporter with over 10 years of experience, founder of ProPakistani.PK


  • Zeshan Masood

    I have no idea, but seems to be April fool lol.

  • Khalil

    I don’t know, where it will end. and will we again will be silence???

  • Ahmed

    Time to immigrate.

  • Fakhrealam

    What the hell. Its time for revolution. Come on pakistan. Wake up

  • Danish

    I think you are confued and confusing others about the surcharge. this is not payable on salary amount but payable on Income tax payable amount from 15/03/11 to 30/06/11.
    for example if your income tax liability for the 2010-11 is Rs 10,000. this liability will be divided by 365 days and then multiply by 108 days (From 15/03/11 to 30/06/11) you will get 2,959. 15% surcharge will be payable on 2,959 which will be Rs. 443. (10,000/365*108)*15% = 443
    I hope it is clear now

  • Sheeraz

    why only salaried employees are victimized ……. becasue we are the silent observers…….. we will not speak………..whatever you do to us….. we will definately not speak…….. :((( :(((

  • Aizaz

    I feel like i am dead. what every they do don’t have an impact on me. because I am like stone no feelings at all now…

    Even a day I put a cut on my hand just to know that am I alive? but strangely I didn’t felt any pain.

    We people are too selfish that we don’t feel others pain but now we are selfish to that extent that we don’t even felt our own pain.

    at the end Pakistan Zindabad !!!

    I love my country and will continue to love it and FUTURES IS IN OUR HANDS…

    • Rameez Kakakhel

      AM with you Aizaz…
      .
      .
      (Hurt by Johnny Cash)
      .
      I hurt myself today
      to see if I still feel
      I focus on the pain
      the only thing that’s real
      the needle tears a hole
      the old familiar sting
      try to kill it all away
      but I remember everything
      what have I become?
      my sweetest friend
      everyone I know
      goes away in the end
      and you could have it all
      my empire of dirt

      I will let you down
      I will make you hurt

      I wear this crown of thorns
      upon my liar’s chair
      full of broken thoughts
      I cannot repair
      beneath the stains of time
      the feelings disappear
      you are someone else
      I am still right here

      what have I become?
      my sweetest friend
      everyone I know
      goes away in the end
      and you could have it all
      my empire of dirt

      I will let you down
      I will make you hurt

      “””if I could start again
      a million miles away
      I would keep myself
      I would find a way”””
      .
      .
      .
      Looking at all that’s happening, makes one cry… But only those will cry who are alive.

  • libra

    These thinks happened if we all not standup.

  • Shahbaz Ch.

    I want to say…
    we are already pay taxes at every thing.
    what we more can????????????

    Shame Shame
    Income tax dept.
    shame shame
    Gournment..

  • Ahsan Shafiq

    Just a correction, 15% of “payable income tax” shall be deducted.
    It’s not 15% of salary.
    That being said, I totally agree with the title of the post, as I am also sick of taxes and not getting basic state services may it be health, security or education.

  • Kashif Hussain

    Instead of imposing so many taxes (and making Petrol, Diesel more expensive every month and thus increasing the price of everything else), why doesn’t Zardari and all the other politicians bring back the looted money that they have accumulated in foreign banks through corruption from Pakistan?

  • Kashif

    people are crying after paying smallest text percentage in whole world. what government is supposed to do without money?

    • Shahid Saleem

      Good point. In America, the average direct tax is 30-40% for most low and middle class people. In Canada and Western Europe it is even more than that.

      In Pakistan if you make 50,000 a month (comfortable for many people), you only pay 1,500 in tax. 3%.

      That is direct tax. There is also indirect tax (see your phone bill, electricity bill, gas bill, petrol, etc.). but in other countries they also pay some of those indirect taxes too.

  • NN

    While your anger is legitimate, let me make an important correction here. It may give some relief to a number of salaried people like me who might have misled after reading this story.

    The new 15% tax is actually a tax on tax. This is to say if you had a salary of Rs. 100,000 and you were paying an income tax of, say, Rs. 5,000, an additional amount of 750 (15% of 5,000) will be deducted from your salary and not Rs. 15,000 (15% of Rs. 100,000) as per the impression created by your comments. If some employers are taking the latter approach, I must say their salary managers are perhaps the dumbest professional. They must correct this silly mistake of deducting employees’ salary unlawfully by a huge amount which is not required.

    As such the former calculation (of Rs. 750 in the illustration above) is consistent with the increase in withholding tax.

  • Atif Qayyum

    Dear Aamir Attaa,
    You are not correctly interpretation the imposition of 15% surcharge. The amount of 15% will be calculated on the Tax Liability/payable by the person whose taxable income is more than 25,000 per month. Suppose a person has income of 30,000 per month (360,000 per year) he will have to pay only Rs. 204 for next 3.5 months (58 per month).
    So dear don’t create havoc among scary people.

    I agree that elite class should share maximum Tax burden than us!!!!!!!!

    ATIF QAYYUM
    ACMA

  • khurram

    Is it 15% of the income tax amount which they already deducted…….what country and management we have. We are paying taxes on tax amount…what we left in the end……
    What is the benefit a tax payer is get in so call Islamic Republic state.
    We are corrupted, selfish and aimless and heading towards the darkness which leads us to destruction, unemployment and poverty.
    May ALAH Pak bless us and open our eyes or we realy need a public revolution?

  • Omer

    If you are doing cheap April fool’s day joke, Aamir, be ready to be sued!

  • Word Life

    While the applicable Income tax is in place, please note the following which might help in easy relief:

    1) How can a salaried person minimize his tax exposure?
    2) Whether a salaried individual can claim rebate or allowance in respect of any personal loan, credit card outstanding balance or other liability?
    3) Whether a salaried individual can adjust/claim withholding tax collected on utility bills?
    4) If answer to (3) is yes, then whether an employer can adjust the withholding tax while making tax deduction from monthly salary?
    5) Whether an employer can adjust withholding tax on utility bills in prior period (Jul 2010 till May 2011) in Jun 2011 salary?
    6) What evidence or support and employee, has to provide to his employer in support of his claim?

    Answers:

    Basically there is no such exemption available for salaried person in Income Tax Ordinance 2001 (ITO 2001), but few sections have such limitations, when you fulfill the requirement, then ultimately you will get credit.
    Section 61-65 of ITO 2001, in which you will get entitled of tax rebate in respect of salary, for e.g. Zakat and donations to approved institution, loan for housing etc
    Second thing, salaried person have a right to claim his income tax on utilities bills as well as mobile and landline phones.

    In this respect, Salaried person can inform his HR department about the tax amount deducted on his bills. HR would reduce this amount from his tax liability.

    In the month of July (after year end) every individual collects his withholding tax certificate from concerned mobile operator (for all prepaid and postpaid numbers) and all the utilities bills, submit them to HR department and if any tax liability is remaining will be adjusted

  • Aizaz

    Nothing is gona happen by saying shame shame behind your screens FOLLOW IMRAN KHAN AND COME TO ROADS TO BASH GOVERNMENT.

    • Shahid Saleem

      How much does he pay in taxes?

  • Aizaz

    I have just noticed that you HAVE TO PAY 15% on your withdraws plus 0.3% w.h.t….

    they are looting money from poor people and I am tax payer means w.h.t and 15% has already been deducted from my pay…

    and tax returns are void means they won’t pay you any thing back.

    • Shahid Saleem

      They want to discourage cash transactions. In a way it makes sense because cash is untraceble.

  • Aizaz

    by withdraws I mean ATM if you withdraw more than or 30,000/-

    • Aizaz

      30K each day twice a day :)

      I mean 60K in 2 days

  • this is time for wakeup man … attack on government ..

    • Shahid Saleem

      How??

  • Word Life

    One additional comment about Tax on Cash Withdrawals … Tax deducted at the time of Cash Withdrawals is 100% adjustable against the employee’s tax liability.

    Get “Certificate of Deduction of Tax” from your bank (ideally after May and before your June Payroll), submit this Certificate to your HR/Finance Department (whoever is responsible for payroll) your tax per month will be reduced by the amount of this Certificate.

    The same is true for all prepaid and postpaid mobile numbers against your CNIC

    Income Tax deducted while paying Vehicle Token (on MotorVehicles registered on your name) is also 100% adjustable against your Income Tax Liability. Submit the proof of ownership of vehicle and copy of paid Token tax to the person/department responsible for preparing the payroll.

    Please make sure you do all this before the June Payroll.

  • Yasir

    It is an April fool prank but soon to be truth. I am waiting for one such email from my HR department

  • Ahmed

    Have you guys heard that badshah wali story in which he was very worried that his nation doesn’t stand up for anything, what if an invader invades his country and they will bow before him too. So he planned beating everyone while they crossed a bridge……

    Hamara bhe yahe hall hai bhai, thoray foogi aur laga do badshah salamat, time waste hota hai jotay khanay mai bara.

    • Rameez Kakakhel

      ^ timely reminder.

  • Alam

    If i get a chance to suicide in Parliament.. I will go for it.

    • Shahid Saleem

      Not very smart. The 15% surcharge was made by the PRESIDENT because the PARLIAMENT would not pass it.

      So you want to die with those who are on your side?? Typical.

  • Saleem

    As per my understanding, it is not only PM or CM who are not paying taxes properly….It is over all trend in our country. No body want to pay taxes unless Government takes it indirect manner. If every body pays taxes and fill yearly tax return assessment with sincerity then story will be different. Unfortunately, who burden comes on those who can not escape it.

    I think we should avoid to discuss politics too much or targeting Politicians, because sincerity to the country hardly prevails in our people. Who ever gets chance, he harms the country and fills bag with money.

  • MA

    There is no need to worry. The nations like us normally face these types of problems. We are sleeping and we don’t want to put our self in these type of issues. We elected these people then why we are writing again them. We are paying tax for the VIPs like President, PM, CM, MNAs, MPAs, Police officials and defense forces. We are not VIPs because we are “KAMMI” so do work only.

    Basically, why we pay taxes? The basic purpose is to get benefit from the Government and to run this country. Everyone can see the working of Government as well as condition of Pakistan. We are not even safe in Pakistan. Any person of civilized country can hunt you we have to release him on Islamic Laws but on the other hand those civilized people are saying that Islam is bad religion.

    What businessman and their CFOs are doing. They are also damaging this country. What’s the source of income of audit firm and tax advisors? How a officer of BPS – 18 scale officer can afford 2 to 3 vehicles. What a joke.

    Dear All: Payment of tax is not an issue basically the use of tax is the main issue. We want to win the cricket match with India but nobody think about match of education and economy. Think and then decide??????

  • Khizer Hussain

    this is ridiculous, hamaray khoon paseenay ki kamai se apna pait kb tak bharain ge.

  • Asim Ishaq

    Use the following link to calculate your monthly tax liability on salary income:

    http://asim.zxq.net/

    It also calculates tax liability based on marginal tax rates. So you choose between two calculations methods.

    Regards,
    asim