Abdul Mannan’s Post

Sri Lanka's revised Tax Proposals-Implications for Individuals & Businesses 1. Revision of Personal Income Tax (Effective April 1, 2025) 2. Increase in Withholding Tax on Interest 3. Imposition of VAT on Digital Services 4. Removal of Export Service Exemption 5. Changes in Corporate Tax Rates 6. Exemption for Locally Produced Dairy Products 7. Simplified Value Added Tax (SVAT) to be Continued 8. Increase in Stamp Duty on Leases 9. Removal of Vehicle Import Restrictions For further details, see here.

Understanding the Tax System in Pakistan: Challenges and Opportunities Taxation plays a crucial role in the economic development of any country, and Pakistan is no exception. The tax system in Pakistan is divided into two broad categories. 1. Overview of Pakistan’s Tax System Pakistan’s Federal Board of Revenue (FBR) is responsible for collecting federal taxes, with provincial governments overseeing regional taxes. Income tax is progressive, meaning the higher an individual’s income, the higher the tax rate. Corporate tax is also an essential revenue stream, along with taxes on imports, exports, and goods sold in the domestic market. 2. Challenges in Pakistan’s Tax Collection Tax Evasion and the Informal Economy: One of the largest challenges is tax evasion. Many sectors of the economy, especially agriculture and real estate, contribute little to the tax net. A vast informal economy, where transactions are undocumented, further exacerbates the problem. Complexity and Bureaucracy: The tax filing system can be cumbersome, discouraging individuals and small businesses from compliance. Complex regulations and a lack of transparency create loopholes that taxpayers exploit to underreport earnings or avoid taxes altogether. Corruption and Mismanagement: Corruption within the tax collection machinery remains a significant hurdle. Bribes and favoritism undermine efforts to broaden the tax base and create fairness in the system. 3. Government Reforms and Initiatives The government of Pakistan has undertaken several reforms to improve tax collection. Initiatives like online tax filing systems and efforts to broaden the tax net have been introduced. The FBR has also intensified audits and imposed penalties on non-compliant individuals and businesses. 4. Opportunities for Improvement Widening the Tax Base: The government should focus on taxing untapped sectors such as agriculture and real estate more effectively. This can be achieved through proper documentation and legislative reforms. Encouraging Compliance: Simplifying the tax filing process is crucial to encouraging voluntary compliance. User-friendly tax software, reducing paperwork, and offering incentives for timely filings could improve the overall situation. Strengthening Anti-Corruption Measures: A transparent, corruption-free tax system is essential for instilling trust among taxpayers. Strengthening internal audits within tax agencies and making corruption a punishable offense would promote efficiency. Public Awareness: Increasing awareness about the benefits of paying taxes, such as better infrastructure, education, and healthcare, would foster a culture of compliance. Citizens need to understand the direct impact taxes have on the country’s development. #SyedAsadKakakhail

Withholding tax: Relief as Nigerian govt exempts SMEs, farmers, manufacturers #WithholdingTax #taxrelief #taxsystem #incometax #workingcapital #taxexemption #economicgrowth https://lnkd.in/eJsx3gzn

Key Findings of Tax Expenditure Report of Pakistan 2024 i. Total Federal Tax expenditure based on data of FY 2022-23 is estimated at Rs. 3,879.20 billion. The breakup under various tax regimes is given below: a. Income Tax: Rs. 476.96 billion (6.66% of FBR’s collection, 12.30% of total expenditure and 0.57% of GDP). b. Sales Tax: Rs. 2,858.72 billion (39.91% of FBR’s collection, 73.69% of total expenditure and 3.40% of GDP). c. Customs Duty: Rs. 543.52 billion (7.59% of FBR’s collection, 14.01% of total expenditure and 0.65% of GDP). https://lnkd.in/dwqjAxe3 ii. The total expenditure is 54.15% of FBR’s collection for FY 2022-23 increased from 36.43% in PFY. iii. The total expenditure is approximately 4.61% of GDP during FY 2022-23 as against 3.36% in the PFY. #ati

Today, I had the honor of participating in a profound session on 'Value Added Tax (VAT)' at our Pre-Examination Certificate Level class, guided by the esteemed Mahbub Alam FCA. The session delved deep into the intricacies of VAT, shedding light on its importance in the realm of taxation. Key Insights from the Session: 1️⃣ Comprehensive Understanding of VAT: VAT is a consumption tax levied on goods and services at different stages of production or distribution, aiming to eliminate the cascading effects often seen in sales tax systems, thus enhancing efficiency and fairness. 2️⃣ Historical and Local Context: The roots of VAT trace back to 1919, credited to Dr. Wilhelm Von Siemens in Germany. Bangladesh embraced VAT in 1991, with subsequent enhancements like the VAT & Supplementary Duty Act, 2012, enacted in 2019. 3️⃣ Contrasting VAT and Sales Tax: VAT operates on a multi-point levy model with provision for tax set-offs, unlike Sales Tax, which follows a single-point levy structure without such set-offs. 4️⃣ Significance of VAT in Bangladesh: VAT contributes significantly, constituting over 38% of the government's tax revenue. Its role in resource mobilization, promoting transparency, and ensuring economic stability cannot be overstated. 5️⃣ Pros and Cons: ✅ Pros: Facilitates self-assessment, boosts transparency, and curbs tax evasion. ❌ Cons: Challenges include high implementation costs, complexity, and the risk of inflationary impacts. Personal Reflection: This session underscored the pivotal role VAT plays in shaping Bangladesh's economic landscape. Mahbub Alam Sir's methodical approach to elucidating taxation laws has been both enlightening and motivating, offering a fresh perspective on the intricacies of VAT.

Changes to South Africa’s tax legislation are on the cards, with the National Treasury considering VAT adjustments and declaring its intention to review how local businesses with global operations are treated. https://lnkd.in/eV5EiH6s

New Tax Article Alert! VAT - Registration Requirements, Compliant Tax Invoice, VAT on Imported Services (VATIS) and VAT Withholding Obligations. Our valued Clients and Readers, we are pleased to share a new tax article under our Tributa publications. Dive into the world of VAT and the current issues and areas that ZIMRA is targeting as well as gain a clear perspective of the overwhelming VAT compliance risk that businesses are exposed to when VAT registration threshold was lowered. The Zimbabwean landscape is changing at a great speed and demands that businesses up the ante in tax compliance. Catch some of these changes in our previous tax article summarising the 2024 Mid-Term Budget Statement. We will continue giving you more interesting and rich tax reads and improve your chance to stay ahead of the complex tax space. Your feedback is greatly appreciated to enable us to continue improving the scope and depth of our articles. For feedback and inquiries, you can reach us on 0776 662 355 or email at advisor@taxadvisoryhub.com. Please like, and repost our posts to reach a wider audience. Mention a colleague in the comments section who may be interested in getting constant tax updates. #Taxation. #Platinum Tax Consultancy. #VAT. #VATIS. #FiscalTaxInvoice. #ZIMRA simon gwenziZimbabwe Revenue Authority (ZIMRA) OfficialE. James

Massive reforms are required in tax and VAT laws to mobilise domestic resources and achieve the government’s target to become a developed country by 2041, according to experts. #bangladesh #businessnews #economy

An economist has argued that the Goods and Services Tax (GST) is a better fit for Malaysia compared to the Sales and Services Tax (SST) due to its potential for significantly increasing government revenue. #Revenue #Business #GST #SST #Tax

🍃President Bola Ahmed Tinubu's new Tax Reforms Summarized. 1. Any business with less than N50million turnover are exempted from tax payment. 2. over 90% of workers in public and private sector will no longer pay income tax. 3. Over 82% of what low income persons consume will be VAT free. 4. scrapping over 50 nuisance tax suffered by local businesses. 5. VAT will no longer be calculated base on where the companies have their headquarters but where their goods are consume. 6. the rich to pay more tax while the poor will stop paying taxes.. 7. Consumption tax collected by states will be eliminated completely. 8. FG share of VAT to reduce from 15% to 10% as states and LGAs now get 90%. 9. Those earning less than N1.7m monthly will now pay less income tax. 10. Customs, NUPRC and other govt agencies will no longer collect tax as only one Agency will be responsible for collection of all taxes in NGR. 11. Those receiving less than N9million per anum could have their income tax cut by half. 12. The bill could lead to abolition of other multiple tax laws like the stamp duty act. 13. Over 90% of small business would no longer pay profit tax. 14. Gradual increase of VAT from 10% in 2025 to 15% in 2030... With almost every goods consume by low income earners exempted from VAT. 15. Many NGR companies pay over 60 types of different tax & levies... The bill seeks to end this factor killing NGR industries. You may not like the messengers ...But, the message is a good one . Copied!!