A total of 49 companies out of 64,950 corporate sector entities have paid more than one billion rupees income tax while 39 percent companies have filed their returns with zero tax during 2014-15. According to analysis of Tax Directory 2014-15 by SDPI, which was launched on Wednesday, 25,000 companies had filed returns with nil income.
Total direct taxes collection amounted to Rs 884 billion in 2014-15 against Rs 735 billion last year, registering an increase by 20 percent. The income tax paid by companies/association of persons (AOPs) increased to Rs 376 billion as top 500 companies have paid around Rs 296 billion. Out of total 64,067 companies registered with SECP, 39,456 companies/AOPs paid taxes while 25,494 had filed returns but showed nil income, the analysis said.
The numbers of billionaire club went up to 49 companies in 2014-15 compared to 45 last year 2013-14. The analysis of tax directory showed that 22 percent companies have paid tax between one to hundred thousands, another 22 percent companies paid one hundred to one million taxes and 17 percent companies paid one million to 100 million. Only 257 companies have paid tax in the range of Rs 100 to Rs 500 million, 51 companies paid in the range of Rs 500 million to Rs one billion and 49 companies paid more than Rs one billion.
It shows that out of 225 entities of media, the tax paid amount stood at Rs 229 million, agro-based industries including fertiliser, sugar, food, beverages and agriculture) paid Rs 27 billion by 791 entities, 107 banks paid Rs 45 billion, 13 construction firm paid Rs 13 billion, cotton, ginning, sugar and oil paid Rs 8.7 billion, 2839 energy companies paid Rs 124 billion, enterprises Rs 3 billion, insurance 2.7 billion, IT/Telecom Rs 13 billion, textile Rs 6.9 billion and others Rs 129 billion. In category of media, there is no entity which paid more than Rs one billion while 24 entities paid tax in the range of Rs one to 100 million. Some renowned companies in category of agro based industry paid nil income tax, analysis said.
Only 3 companies in construction sector have paid more than Rs one billion. Many corporate companies showed nil income tax. There are 19 companies in energy having paid more than Rs one billion in shape of income tax. Similarly, there are some entities in energy sector showing nil income tax. There are four companies in IT/Telecom sector having paid more than Rs one billion. SDPI analysis showed that one telecom company paid zero income tax in 2014-15.
Talking on the occasion, MNA Asad Umer said the politicians should lead the tax collection effort by example. In reality, they are the one, who are stopping the ball from rolling. He said that the resolution for conducting tax audit of all 342 Members of the National Assembly, initiated by him, was blocked and made ineffective by the former speaker of the National, by delaying it for six month and then overwhelming the finance committee with the ruling party's MNAs.
He said that if the corporations are showing increasing profits and the economy in general is regressing, it is a recipe for increasing poverty and increasing the gap between the rich and the poor. He said that increasing tax on the petroleum products and not passing on the advantage of fall in their international prices have made our exports internationally uncompetitive.