Banking Transactions Fall in Pakistan, Thanks to Taxes

[Uncle Q]

[FONT=&amp]There has been a marked decline in bank based transactions with out of bank settlements increasing.[/FONT]

[FONT=&amp]According to the latest annual report of the State Bank of Pakistan, deposit mobilisation has seen a sharp decline in fiscal year 2015-2016. Currency circulation on the other hand has seen a record high growth in the same time period.[/FONT]
[FONT=&amp]Despite an increase in money creation, overall deposit mobilisation still saw a decline. The public preference now seems to be towards the currency.
[/FONT]
Highest Ever Growth in Currency Circulation

[FONT=&amp]The fiscal year 2015-2016 ended with highest ever annual growth in currency in circulation. Now that more money is being printed with less coming back, it is safe to conclude that most of the transactions are being done out of banks. Hard cash is preferred over bank transfers in simple words.[/FONT]
[FONT=&amp]Currency growth in 2015-2016 was 30.5 percent. This level of currency circulation was previously seen during 1972-1973 fiscal year, at the time of East Pakistan becoming Bangladesh.[/FONT]
[FONT=&amp]A reason for this may be the withholding tax on transactions that was applied this year on non-cash banking transactions cross-cheques, demand drafts, pay orders etc undertaken by non-filers.
[/FONT]
Business Communitys Woes

[FONT=&amp]The business community has been very vocal about this issue, asking the finance minister to revoke the tax. According to the SBP report,[/FONT]

It is important to recall here that the business-sector deposits, which constitute nearly a third of total (non-government) bank deposits, are used primarily to facilitate their voluminous transactions. Therefore, a tax on these transactions over and above usual business levies (like income tax, sales tax, FED etc) is surely an added burden,
​

[FONT=&amp]Originally the withholding tax applied on these transactions was 0.6 percent which was lowered to 0.4 percent where it currently stands.
[/FONT]
Business Community Looking for Other Methods

[FONT=&amp]Because of the problems faced by the business community due to the tax, they have turned to other methods for their transactions. Prize bonds, dollars and bank lockers are being used instead of direct transactions through bank accounts. The report by SBP also suggests that the imposition of the tax on banking transactions was wrong.[/FONT]
[FONT=&amp]Business sector bank deposits have seen a big decline for this reason.[/FONT]
[FONT=&amp]Monetary expansion in 2014-2015 was 13.2 percent while corporate deposits increased by 9.4 percent. While in FY 2015-2016 corporate desposits increased by a mere 1.2 percent while monetary expansion stood at 13.7 percent.

https://propakistani.pk/2016/11/21/banking-transactions-fall-cash-reigns-supreme-pakistan/
[/FONT]

 

[mubarik Shah]

Kaum nay satoo piya howa hai.......

 

[aazad.mubassir]

Modi formula is the best to encounter black economy, although there's some short term drawbacks but before that govt needs to announce some Tax Amenity schemes. When everything will be done through banks then Tax collection will increase automatically, no need to go to IMF anymore.

 

[janijoker]

​جن کے کروڑوں اربوں کے کاروبار ہیں ،جائدادیں ہیں وہ بھی ٹیکس نہیں دینا چاہتے ، حکومت نے پراپرٹی سیکٹر پہ ٹیکس لگانے کی کوشش کی تو سرمایہ داروں نے حکومت کو بلیک میل کرنے کے لئے سرمایہ کاری روک دی ، اچھے بھلے لوگ اور نئے پاکستان کے مستری بھی ٹیکسوں کی مخالفت میں پیش پیش،،یہا ں کچھ نہیں ہوسکتا

 

[Tyrion Lannister]

these pathetic landlords turn politicians want to suck money out of every transaction of medium hard working business class where they dnt pay a penny on their dozens of acres. Pakistan have to start with agricultural reforms to bring these waderas under tax network

 

[Tyrion Lannister]

​جن کے کروڑوں اربوں کے کاروبار ہیں ،جائدادیں ہیں وہ بھی ٹیکس نہیں دینا چاہتے ، حکومت نے پراپرٹی سیکٹر پہ ٹیکس لگانے کی کوشش کی تو سرمایہ داروں نے حکومت کو بلیک میل کرنے کے لئے سرمایہ کاری روک دی ، اچھے بھلے لوگ اور نئے پاکستان کے مستری بھی ٹیکسوں کی مخالفت میں پیش پیش،،یہا ں کچھ نہیں ہوسکتا

sir tax on property selling and purchasing is a common thing in Europe but they provide services in return, what services Gov of pakistan is providing for the feasibility of proprty based business? They still have to pay in adalat, in council office, every where to accelerate the process. They cannot pay on both fronts

 

[ifteeahmed]

​جن کے کروڑوں اربوں کے کاروبار ہیں ،جائدادیں ہیں وہ بھی ٹیکس نہیں دینا چاہتے ، حکومت نے پراپرٹی سیکٹر پہ ٹیکس لگانے کی کوشش کی تو سرمایہ داروں نے حکومت کو بلیک میل کرنے کے لئے سرمایہ کاری روک دی ، اچھے بھلے لوگ اور نئے پاکستان کے مستری بھی ٹیکسوں کی مخالفت میں پیش پیش،،یہا ں کچھ نہیں ہوسکتا

تجربہ کہا چلا گیا؟
ٹیکس تو کوئی بھی نہیں دینا چاہتا اسکو تو نکلوانا پڑھتا ھے، محنت کرنی پڑھتی ھے۔
عوام کی بھلائی کے لئے لینے پڑھتے ھیں۔ unpopular decisions
جب کچھ نہیں کرسکتے تو پر کرسی سے کیوں چپکے ھوئے ھو۔
عموام نے ووٹ اسلئے دیا تھا کہ بلیک میل ھوکر غریبوں پر ہی ٹیکس بڑھا دو؟؟

 

[Undetectable]

No Taxation Without Representation: Says Majja​