Only 10 multinationals among top taxpayers

 

LAHORE: Only 10 multinational companies were among the top 20 taxpayers that paid 65 percent of Rs154.732 billion in taxes, the News learnt on Monday.

 

That’s according to the tax directory (2012-13) of the Federal Board of Revenue (FBR) which breaks the myth that multinational companies pay more taxes. The Top-20 group includes the Oil and Gas Development Company Limited, Pakistan Petroleum Ltd, Government Holdings (Private) Ltd, Fauji Fertilizer Company Ltd, MCB Bank Ltd, Pakistan State Oil Ltd, Civil Aviation Authority Ltd, National Bank of Pakistan Ltd, Pakistan Telecommunication Authority and Allied Bank of Pakistan Ltd.

 

A few foreign companies falling in the group are those with substantial shares of the government of Pakistan. Among them are Pak Arab Refinery Ltd and Pakistan Oilfields Ltd.

 

The FBR’s document also ruled out another claim made by some of the most reputed economists of the country that top-100 taxpaying companies contributed 80 percent of the total income tax collected.

 

It showed the top 106 companies contributed only 29 percent of Rs226.342 billion out of Rs791 billion income taxes collected in 2012-13. Another surprise was that from the automobile sector top taxpayers were three Pakistani companies, including Indus Motor Limited with Rs1.822 billion, Millat Tractor with Rs1.043 billion and another local concern Al-Ghazi Tractors Limited that paid Rs960.8 million in tax.

 

Foreign-owned Pak Suzuki contributed only Rs513.6 million in income tax, while Atlas Honda Ltd paid Rs494 million income tax. Among the top-10 taxpaying companies seven are Pakistani companies.

 

The public sector companies among the top 106 taxpayers deposited nearly Rs100 billion of the 226.34 billion taxes deposited. Among the banks, HBL was the top taxpayer with Rs11.786 billion, followed by MCB Bank – the fourth largest bank of the country – that paid Rs10.756 billion income tax. The UBL was the third among the banks in tax payment with Rs6.588 billion. The government-owned National Bank of Pakistan –the second largest bank in the country after HBL – paid only Rs4.486 billion income tax.

 

Interestingly, Nishat Mills Limited was the only textile company that was among the top 106 taxpayers. Placed at number 57, its contribution in the income tax was Rs668.373 billion. Similarly, only two cement plants were among the top 106 income taxpayers. They included Lucky Cement placed at 68th position with tax deposits of Rs593.207 million and Attock Cement Pakistan Ltd at 72nd deposited income tax worth Rs555.898 million.

 

There are five pharmaceutical companies in the list. All of which are multinationals. The last in the list is K&N Foods, which at 106th paid Rs333.372 million income tax. The list of 101 salaried individuals released by the FBR revealed they cumulatively paid Rs3.42 billion income tax. It is worth noting that most of the individuals that were among the top 101 taxpayers are employed by Pakistani companies. The taxpayers among top 101 employed by the multinationals are in minority. Three Lahore-based brothers are among the top 10 taxpayers. They are sons of late Nisar Danka. Tariq Nisar was on top as he paid Rs189 million as income tax. Sohail Nisar is at 6th with income tax payment of Rs105.6 million and Anjum Nisar at 8th with income tax payment of Rs80.9 million.

 

Five members of family enjoying majority shares in Allied Bank Ltd and Ibrahim Fiber are in the FBR list – three of them among top 10 taxpayers. They are Muhammad Naeem Mukhtar, Muhammad Waseem Mukhtar and Sheikh Mukhtar Ahmad, while Faisal Mukhtar is at 17th and Fawad Ahmad Mukhtar at 39th position. There are four members of Mansha family members among the top 101 taxpayers, namely Hasan Mansha at 4th, Umar Mansha at 11th, Mian Raza Mansha at 28th and Naz Mansha at 59th.

 

No parliamentarians are among the 101 taxpayers although former caretaker finance minister Syed Baber Ali paid Rs43.5 million income tax and was ranked 21st in the list. He basically is a businessman and apart from his stint as finance minister he has never been involved in politics. Razzak Dawood, another former commerce minister, is also basically a businessman and was ranked 92nd in the list with a tax payment of Rs16.7 million. Jehangir Khan Tareen is currently active in politics. He clinched 84th rank with a payment of Rs18.13 million.

Source: The NEWS

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