Surprisingly High Tax Payments from the Low Paid Market in Karachi
Karachi’s retail and wholesale markets, which are in line with the requirements of Middle class and low-income sections, have been submitting regularly, the taxes due according to their incomes. However, despite all this, there is still a lack of basic facilities.
In comparison to this, the collection of tax from food streets and commercial markets, that are located in the most popular parts of Karachi, has been low. Only 4 businessmen paid tax of Rupees 175 in 2018.
However, in Karachi’s Burns Road Food Street, 807 vendors have paid approximately Rupees 111.3 million as tax.
The Federal Board of Revenue (FBR) released the data of income tax of the financial years of 2017-2018, which suggested that the markets of the Saddar area had paid taxes of Rupees 77 billion. This amount is greater than the revenue made from Sialkot, Faisalabad, Gujranwala, and Wazirabad, which are considered as industrial cities. Furthermore, a total of Rupees 94 billion as income tax has been paid by more than a hundred bazaars and shopping malls in Karachi, from which 82% generated from the Saddar Bazaar.
Each business in the service sector is obliged to engage in tax services as it is their duty. Data analysis shows that more than 10,803 shop owners of the market areas of Liaquatabad have suffered a lot due to the political struggle between the MQM and the Sindh government. Moreover, due to the recent flood due to heavy rains, they have lost Pakistani rupees in the form of millions. Even after the rains, some sewage lines are still blocked which has to lead to the bankruptcy of many shopkeepers. Other than the shops selling new products, second-hand bazaars have been paying taxes regularly. This includes markets like Lunda Bazar and Light House, which have paid approximately Rupees 55.2 million as tax. Followed by this, Empress Market has paid Rupees 196.5 million in the form of taxes.
The fluctuation of taxes in different areas is due to issues in tax filing in Pakistan. More than 540 booksellers located in the Urdu Bazaar have paid taxes of Rupees 26.44 million, following Soldier Bazaar that has paid Rupees 32 million, and then Babar Market that has paid a total of Rupees 10 million.
The Sher Shah Kabari Market, that has gone through years of extortion, has paid Rupees 26.8 million. Moreover, the tax collected from the clothing areas of Karachi has also been high. A total of Rupees 18.4 million of tax was paid by the Jama Cloth Market and Haideri Market has paid the amount of Rupees 180 million. Moreover, the Gul Plaza which is the center point of imported products paid Rupees 64.5 million and the Vegetable Market paid Rupees 215.2 million.
Meena Bazaar, which is the center of jewelry and makeup, has paid Rupees 17.8 million. In the market of computer equipment, the Uni Center has paid Rupees 600 million in the form of taxes. Hence, to stay regular with tax payments, tax consultants in Pakistan can be contacted, who guide companies and shopkeepers about the laws and regulations.