The webinar which many people have been talking about – where former FBR chairman Shabbar Zaidi made some startling revelations – can be seen here. Shabbar Zaidi has revealed some secrets which were only talked about yet in hushed tones in Pakistan.
Pakistani businessmen have stashed $150 billion offshore after making those in profits through local businesses, claims Zaidi. They would make more returns on those in Pakistan but there is the fear factor of the unknown. As tax chief Zaidi went to business chamber KCCI, told them and I will ease any tax-related hurdles, just stop selling smuggled goods across Karachi, the president plainly refused the offer saying that’s not possible.
“I faced resistance from the business community. They are not even 1% interested in tax reforms”. “No politician has a listed company, except JKT. They don’t want documentation”. There was a businessperson who wanted to acquire a foreign company for $200 million but the deal didn’t go through since the money was not disclosed officially on the books. Highest evasion happens in tobacco industry with 30% cigarettes smuggled. I started a track-and-trace method to stop smuggling but the court shot it down: Shabbar Zaidi.
Most smuggled products with massive gap between production and consumption: tobacco, sugar, battery, white goods, motorcycles, cycles and cement, and in cigarette sales, 74% goes to the govt. When there is such high tax then there will be evasion. Income tax and custom office IT department strangely catch fire every 3-4 months. He gave an intelligence agency the task to secure the IT system.
He is auditor par excellence n his knowledge of financial trade Mkts is better than anyone. His statement is very conservative an factually on the spot. The parliamentarians are part of the problem & culture in business community it is simple: don’t declare. He’s absolutely right, in this country no one wants to pay taxes. What he said about agriculture sector, each and every word is correct. Taxation is a very complicated process in Pakistan. Since the survival of of the country lies there, it must be resolved quickly.