What are taxes and how do I pay them?

[namsu99]

Recently Junaid Bhai (@Jshak) shared this interesting piece of information about paying General Sales Tax at high end eateries and I realised I really don't know much about paying taxes at all.

For what it's worth, I know that my parents pay taxes and are filers. They don't file their tax returns themselves, but know a guy who does it for them. However, they don't have much knowledge of this either.

I Googled this and did learn a few things, but it was all general stuff. So, now I turn to you guys hoping you might have something that might help me understand?

I know what NTN/STN numbers are. I know that GST is applicable to be paid on everything we buy from anywhere, and that all employees pay a specific income tax on their salaries. I also know that there are other taxes that companies / service providers automatically deduct / charge us when we use their services. But that is all that I know.

I've heard that 'being a filer of tax returns' means you're a person who provides the government with detailed information of the tax you've paid over the year.

I've only just found out (from Junaid Bhai's post) that filers actually are returned a percentage of the amount of tax they pay.

Would anyone please be able to explain what I'm missing?

I'm a pretty stand up guy and would actually like to do everything myself. I don't want to rely on other people to file my tax returns nor do I fancy being made a fool of just because I'm unaware of something.

P.S. This stuff should have been taught in school.

 

[Spartan 117]

I agree about this stuff being taught in school.

 

[GloriousChicken]

I feel ignorant all of the sudden.

 

[Blastwave]

Income Tax has brackets.

Each bracket has increasing number of taxation amount.

Tax amount is fixed unless changed by government.

Some tax brackets are total shit, you pay more than your increments :lol:

Most if not in all cases, your employer pays your taxes on your basic salary and you get your gross salary.

Taxation starts at annual salary of 400,000 or higher.

You file tax returns your self. You should file them yourselves.

Tax filing is done through FBR IRIS now. Its online, there are shit loads of forms and you fill it up.

To file for returns you need salary slips, bank statements, assets information etc.

Its not that difficult but its impossible to do it yourself without professional help.



NTN is dead. your NIC will be NTN if you register now.


Also, you will run into A LOT, and i mean A LOT of people who will laugh at the idea of paying taxes and filing returns. FUCK THEM ASSWHORES.


Not only this is your civic duty but a crime to evade taxation.

 

[namsu99]

Soooo the only thing we're supposed to pay ourselves is the income tax?

Excluding obvious stuff like motor vehicles tax etc. I heard there was a tax on having a TV in your house?

 

[Blastwave]

Soooo the only thing we're supposed to pay ourselves is the income tax?

Excluding obvious stuff like motor vehicles tax etc. I heard there was a tax on having a TV in your house?

Motor Vehicle tax is paid every year and you get a sticker to put on your windshield.

TV Tax... yes its there, you should pay it :crazy:


We should compile a list of taxes a person has to pay themselves in Pakistan.

I'll start

There's

Income Tax

Property Tax

Vehicle Tax

Asset Tax

Import Tax

 

[Benighted]

What happens if you don't pay TV tax?

 

[deltree]

I will give you guys another info here, basically government charges taxes on shipments etc. They deduct advance income tax on those and assume everyone is a non ntn holder so they apply penalty of 1,000rs. and also basically charge a higher rate of advance income tax something like 9% vs 6% if you were a tax payer (fedex, dhl, major couriers etc. can give you this breakdown, never accept anything without this breakdown). But all things aside the biggest saving you will get is on your annual or bi-annual motor vehicle tax. Expect it to be cut by half and also when you book a new car or get a less than 5 year old car transferred to your name you will literally save thousands of rupees if you are a filer. I have purchased a car 10 months ago but have still not transferred it because of this, the motor vehicle tax we paid on it has been killer and I have already started process of acquiring NTN or whatever it is since my brother is a lawyer and he is getting me this stuff done free of cost. Considering they are lawyers there are other things such as utility bills which may be in your parents name but a game can be done on it showing you are contributing to household expenses too and what not. So trust me in this new day and age if your earning in the bracket get registered the saving in hard cash is certainly there!

 

[Jshak]

SNTN was introduced after 2011 ( 18th amedement ) for eateries that have to register this way and this is for Sindh Only. These number's relate to provincial collection of tax. SBR ( sindh board of revenue )
Before 2011 G.S.T as Federal number being alloted.

Now if you see an NTN /SNTN which means that eatery has been launched post 2011 and they should not charge you more than 14%.

 

[namsu99]

We should compile a list of taxes a person has to pay themselves in Pakistan.

I'll start

There's

Income Tax

Property Tax

Vehicle Tax

Asset Tax

Import Tax

Please do! You have no idea how helpful this will be for people like me xD

 

[Blastwave]

Please do! You have no idea how helpful this will be for people like me xD

Where are all the finance people of PG?

They should be explaining this thing :crazy:

 

[StrikerX]

Where are all the finance people of PG?

They should be explaining this thing :crazy:

Yes they should :crazy: There is literally nothing on the internets for this shit :c

 

[gullfounder]

Wana see if its do able or no. If yes then why not

 

[K3yser]

Captain here: Taxes simply make up for the bulk of what a Government running a country earns. Govt. only has a few sources from where it can earn revenue to pay for all its activities (roads, infrastructure, health sector, military, its employees, govt. departments etc etc) and Tax makes up the bulk of the money stream from where it can go about doing all these things i.e. Expenditures.

The Taxes you pay go directly to a govts exchequer from which it is free to spend on whatever it wants. Thats the story in simplest terms possible. You pay to the govt out of your hard earned money so it can give you facilities like roads to drive on, police to protect you, govt servants to serve you, bla bla and be a good citizen of the Federation.

- - - Updated - - -

THis is the simplest explanation lemme know if you wanna know more

 

[MonoQ]

Police to protect you....and govt servants to serve US? ...well very few of em are doing their jobs like intended...

 

[K3yser]

^^ this is the text book version. Dont wanna start a debate over here

 

[namsu99]

We have finance people at PG?

We're really an all rounder community, aren't we?

 

[Blastwave]

[MENTION=1851]The Punisher[/MENTION] [MENTION=37577]figorakah[/MENTION] [MENTION=35276]Mukhtar QAMAR[/MENTION] [MENTION=42081]shaez[/MENTION] [MENTION=55065]sajeel7[/MENTION] [MENTION=24042]afeef[/MENTION]


Haan bhai can anyone of you provide basic understanding of taxation in Pakistan and how to fill out IRIS on FBR website?

 

[afeef]

I failed miserably in filling out the IRIS, hire an accountant and let him do the job for you.

 

[Firebender]

If they taught this stuff in school, maybe we'd have more taxpayers.