6. DOMICILE OF FOREIGN COMPANIES
Country Newly incorporated companies FY Number of companies as of
2013-14 30-Jun-14
US 1 156
Uk 2 119
Fracne 1 26
Germany 2 25
China 7 45
Japan 1 38
Australia 0 20
Middle Eastern countries 2 62
Far Eastern countries 4 119
Other European countries 2 130
Other Asian countries 0 14
Other countries 0 93
Total 22 847
7. SECTOR WISE BREAKUP OF COMPANIES
Sector
Newly incorporated companies for
the financial year ending june 30,
2014
Total companies as of June 30, 2014
Auto and allied 60 787
Broadcasting and Telecasting 68 567
Cables and electric goods 42 682
Carpets and Rugs 3 71
Cement 2 102
Chemical 75 1,643
Pharmaceutical 128 1,390
Communications 173 2,662
Construction 306 3,162
Corporate agriculture farming 195 1,225
Education 132 999
Engineering 108 1,842
Finance and banking 33 1,089
Food and beverages 166 2,443
Footwear 5 75
Fuel and energy 82 1,250
Ginning 8 350
Glass and ceramics 5 260
Healthcare 68 578
Information technology 367 2,947
Insurance 11 284
Jute - 20
Leather and tanneries 16 368
Lodging 22 462
Mining and quarrying 66 572
Paper and board 87 1,142
Power generation 125 858
Real estate development 99 1,319
Services 520 7,182
Sport goods 12 199
Steel and allied 23 508
Sugar and allied 10 180
Synthetic and rayon 3 194
Textile 141 4,662
Tobacco 4 86
Tourism 421 6,706
Trading 544 7,310
Transport 99 1,286
Vanaspati and allied 23 453
Wood and wood products 11 215
Miscellaneous 324 5,937
Total 4587 64067
8. COMPANIES WHO FILED INCOME TAX RETURN
WITH FEDERAL BOARD OF REVENUE
•23,859TAX YEAR 2013
•24,195TAX YEAR 2014
•336TAX BASE
ENHANCED YOY
9. GAP ANALYSIS- SECP VIZ A VIZ FBR
COMPANIES REGISTERED
WITH SECP
COMPANIES FILED
INCOME TAX RETURN IN
TAX YEAR 2014
DIFF./NON FILERS
•64,067
•24,195
•39,872
10. GDP ANALYSIS OF REGIONAL COUNTRIES
Pakistan BanglaDesh SriLanka India HongKong SingaPore Malaysia Turkey
Annual data 2014a
2014a 2014a
2014a
2014a
2014a
2014a
2014a
Population (m) 185.1 158.8 21.4 1,256 7.3 5.5 30.2 76
GDP (US$ m; market exchange rate) 246.6b 178.2 74.95b 2,133 289.6b 307.9 326.93b
799b
GDP (US$ m; purchasing power parity) 896.4 497 217 7,366 398 448.8 747 1,473
GDP per head (US$; market exchange rate) 1.33 1.12 3.50 1.70 39.89 56.29 10.83 10.51
GDP per head (US$; purchasing power parity) 4.84 3.13 10.13 5.87 54.82 82.05 24.76 19.37
Exchange rate (av) Respective currency:US$ 101.1b
77.61b 130.6b
61.0b
7.754b 1.27 3.27b
2.19b
Historical averages (%) 2010-14 2010-14 2010-14 2010-14 2010-14 2010-14 2010-142010-14
Population growth 1.7 1.2 0.8 1.2 0.6 1.9 1.7 0.9
Real GDP growth 3.5 6.1 7.4 4.6 2.3 6.4 5.8 5.4
Real domestic demand growth 3.3 5.9 8 4.2 3.4 5.2 8.1 5.6
Inflation 9.9 7.9 6.1 7.2 3.6 3.2 2.4 8.1
Current-account balance (% of GDP) -1.3 1.3 -4.8 -3.1 3.5 20 7.4 -6.3
FDI inflows (US$ m) 0.7 0.9 913.1 1.6 34.3 20.7 4 1.6
11. TAX TO GDP RATIO
CountryName CountryCode IndicatorName 2008 2009 2010 2011 2012
Afghanistan AFG Taxrevenue(%ofGDP) 6.04 8.43 9.12 8.85 7.47
Bangladesh BGD Taxrevenue(%ofGDP) 7.66 7.50 7.83 8.69
HongKongSAR,China HKG Taxrevenue(%ofGDP) 12.72 12.50
India IND Taxrevenue(%ofGDP) 10.75 9.64 10.19 8.98 10.79
Malaysia MYS Taxrevenue(%ofGDP) 14.66 14.94 13.74 15.24 16.10
Pakistan PAK Taxrevenue(%ofGDP) 9.49 8.94 9.98 9.19 10.10
Singapore SGP Taxrevenue(%ofGDP) 13.85 13.07 12.97 13.36 13.97
Turkey TUR Taxrevenue(%ofGDP) 18.52 19.16 20.49 20.14 20.38
12. WHY LOW CORPORATIZATION IN PAKISTAN
• Multiple taxes on same source
• Bonus Shares
• Dividend
• Dividend in specie
• Capital gain on Sale of securities
• Tax on Reserves-proposed
• Stringent withholding tax regime
• Heavy cost of withholding of taxes without any incentive for the collection agent. Instead punitive
measures are used in case of failure to deduct tax.
• Withholding of taxes even from persons otherwise not even required to file return-Like mobile users and
leaving the rich to get away by paying only withholding tax
• Highhandedness of Taxing Authorities
• Repetitive investigations/Multiple audits/Undue calling of information
• Grudges and infective attitude
• Gratifications/Teaming with tax evaders'
• Lack of knowledge on impact of Industry
13. WHY LOW CORPORATIZATION IN PAKISTAN-
CONTINUES
• Over Taxation
• Tax rates under first Schedule
• Taxation of dividend and Interest on Securities on normal rates as compared to
concessionary rates-Proposed amendments through Finance Bill 2015-16
• Surcharge for IDPs
• Lack of desire to work hard
• Lack of co-ordination between various government tax collecting agencies
• Lack of strong field work
• Excessive Dependence on withholding taxes
• Lack of enforcement is a major issue
14. CURRENT UTILIZATION OF BUDGET
Total Projected Tax Receipts
Debt Servicing
Shares of Provinces
Defense Spending
Balance for Federation
• PKR (In b)=3,418
• Interest PKR (in b)= 1,280
• PKR (In b)=1,849
• PKR (In b)=781
• PKR (In b)=(492)
16. TOTAL RETURNS FILED TAX YEAR 2014 & 2013 YOY
2013 2014 DIFF.
I TAX RETURNS FILED NOS NOS YOY
COMPANIES 23,859 24,195 336
AOPs 42,749 40,763 (1,986)
INDIVIDUALS 814,654 791,271 (23,383)
TOTAL 881,262 856,229 (25,033)
17. SOLUTION TO THE PROBLEMS
• Correcting the tax net to catch big fishes currently escaping untaxed. This can
only be achieved by improving enforcement.
• Securitization of Debts
• Taxing what FBR already has in its hands-Non filers and Nil filers