Myth of two percent

It has been repeatedly advertised on T.V. channels that out of 180 million people only 2 percent pay income tax. If we carefully calculate different sections of people the above myth is unrealistic. Out of 180 million people 110 million or 61 percent are rural poor living below the poverty line. That leaves 39 percent of urban population which comprises 28 percent of below 20 years persons including children which are not taxable but at the same time are paying indirect taxes for using mobile phones, transportation and GST. This leaves 15 percent urbanites out of which 7.35 per cent are women folk at the rate of 49 percent women in general population which have a small percentage of tax payers. We are thus left with only 7.65 percent urban population as potential tax payers. Now how many out of these earn more than Rs. 25,000 per month taxable income from this section of population which is anybodys guess. As such 2 percent figure of tax payers would be nearer the taxable people more or less or at best one half per cent could be added to it. Therefore, drumbeating of 2 percent tax payers out of 180 million people is not logical as it is pure fantasy and figment of imagination. Perhaps the statistical division of Federal Government could shed more light on the myth of 2 percent income tax payers out of 180 million people. DR. MUHAMMAD YAQOOB BHATTI, Lahore, June 30.

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