Here’s How Government Extorts Businesses Under the Guise of ‘Taxes’ and ‘Fees’ - Android

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Here’s How Government Extorts Businesses Under the Guise of ‘Taxes’ and ‘Fees’ - Android

 
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by Wahaj us Siraj The government needs taxes to deliver services to its citizens. While doing so, the easiest prey… Read More

The post Here’s How Government Extorts Businesses Under the Guise of ‘Taxes’ and ‘Fees’ appeared first on .

by Wahaj us Siraj

The government needs taxes to deliver services to its citizens. While doing so, the easiest prey are businesses because they regularly file returns, are compliant and can be more wrested in the tax net.

Broadening the tax net is difficult for taxmen and an easy method is always preferred as if they don’t get paid to do hard things. Whenever the government needs more money, the genius solution is to slap additional duties and taxes on those who’re already paying.

The same approach is applied while charging regulatory fees. Legally, fee is not tax and charged in lieu of certain services provided by the regulators and authorities like licensing rights, facilitation, etc., and have to commensurate with the costs of services provided by the authority.

The general remarks of government officials in meetings with businesses are “you’re making too much money” as if the government has provided the seed funding. Days of monopolies for private businesses, except for a few powerful government-owned monopolies, are over. Markets are volatile and hypercompetitive. Customers are the best judges in buying a product or service at a certain price.

Of course, businesses have to make money and profits otherwise they can’t exist. Businesses, particularly structured corporates, are engines of growth for any economy. They bring competitiveness, innovation, new technology, and most importantly create jobs for educated youth, something our country direly needs.

The telecom sector, with the highest tax rates up to 40% in the world, is no exception to the worst treatment often faced by businesses at the hands of the government. On top of this, the operators are charged exorbitant right of way (ROW) costs, regulatory fees, etc., disgraced and treated like dirt by arrogant officials.

Humiliation and dishonor of Jazz by the taxmen has brought widespread shame to government officials. One of the largest Pakistani taxpayers never deserved this treatment – taxmen sealed their head office in presence of police, made videos and posted on social media as if they had caught the biggest tax fraud of the century.

It’s a controversial order as Issue 3 of 4 in 22 pages order dated 22.09.2020 of Appellate Tribunal Inland Revenue, FBR relates to “Industrial Undertakings”.