Every cellphone user pays Rs.25 on each Rs.100 recharge as tax. It was really unexpected to know that cellular telecom companies are trying to avoid paying all the tax collected through each pre-paid card to the Federal Board of Revenue(FBR). It was confirmed that the FBR has no record or know-how of the number of cards that were being printed for sale, and the telecom companies are not duty-bound to provide related information to the FBR. The telecom companies do pay a certain amount of tax to the FBR on a yearly basis but it definitely is not comparable to what they earn.
Flaws Persist in Taxation System for Telecom Companies
All the loopholes should be noticed, so that no organisation can be reluctant while paying tax, specifically multinational organisations. There is a general supposition that a huge amount of the tax collected is not used to meet the sincere needs of the people. The tax collected is not spent on genuine welfare projects. Whereas in developed countries, the taxes collected are spent on welfare projects which are genuine. Therefore trust is lacking between taxpayers and the government and this is the reason that many of us avoid paying tax. A system has to be established where everyone pays taxes and those who do not pay taxes should be punished badly.