Nawaz Sharif’s 10% Disaster Economics

Nawaz Sharif is so clueless about solving the economic situation in Pakistan that during an exclusive interview with Hamid Mir a few weeks back he proposes PML’s economic plan to hinge on a flat 10% tax rate.  It may honestly look tempting but the gravity of the statement further exposes how clueless PML-N is about solving Pakistans problems and is focused only on a marketing strategy to fool the people (and appease the rich) into believing that their experience in power will salvage this country.

So dastardly clueless is this plan that probably little does he know that next year we need $12 billion to survive in the following 12 months – $5 billion to finance the current account deficit and $7 billion to repay out debts (principal and interest), the following year it doubles to $24 Billion.  Giving tax breaks to the rich is again shooting Pakistan in the foot, PPP has looted this country to bankruptcy under the garb of corruption – Nawaz Sharif plans to help the rich siphon off money, while the poor can continue their curse of poverty

By some weird coincidence the 10% figure looks intriguing

  1. Mr. 10 PERCENT who occupies the Presidency to have given us 10% Corruption Economics
  2. We now might have another Mr. 10% sitting in Rawind to teach us his 10% Disaster Economics

10% DISASTER ECONOMICS – Nawaz 3E Formula

  1. He plans to RAISE taxes for an avg tax paying Pakistani household
    1. Presently a household earning Rs 40,000 / month at the present tax rates pays Rs 333 in taxes
    2. Under Nawaz Sharif’s 10% flat tax will end up pay Rs. 4,000 (1100% increase) [poor getting over taxed]
  2. He plans to REDUCE taxes for the rich
    1. Presently a household earning Rs. 10 Lac at the present tax rates pays Rs 1,98,000
    2. Under Nawaz Sharif’s 10% flat tax will end up paying Rs. 1,00,000 (50% tax break) [rich getting tax cuts]
  3. He also proposes to reducing taxes for companies / corporations & banks to a Nawaz Sharif reduced flat tax rate would instantly mean that Rs. 320 Billion disappear from the tax collection from an existing income of Rs 450 billion.

Bottom line is the poor will poor will continue to bear the burden of Pakistan flailing economics while the rich continue evading taxes and finding loop holes to amass more wealth,

PML has ruled Pakistan for over 18+ years in some form or another combined and they still have utterly no clue on how to solve this crisis



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6 responses to “Nawaz Sharif’s 10% Disaster Economics”

  1. molvimajid Avatar

    Listen to his words carefully. 10% is a symbolic figure. As he said in the end…10% for a certain income slab, 15% for another salary slab…And regarding your maths on a 40,000 income, Mian sb has no intention to put burdon on people already paying less than 10%. His remards are basically for high earning individuals. Use common sense although I doubt if you have it being a PTI supporter.

    1. Teeth Maestro Avatar

      Molvi sb – even if you so innocently decipher the logic – the Disaster Economics gets even worse – Nawaz is offering a Massive Tax break to the rich & affluent (mind you they are already evading taxes) reducing 35%-10% is a loss of 25% – and as you plead there is no rise in taxes for the poor – so the budget deficit gets even worse – 25% PLUS AN ~8% [low income tax bracket] making it a loss of 32% to the govt of Pakistan

      Simple maths my friend simple maths – 17 years of Nawaz Sharif running businesses he still thinks from a RICH mans' perspective – he hopes that tax breaks will entice people to give more taxes NO WHERE does anyone willingly want to part with his money – the only way Govt of Pakistan can generate taxes is to TAX the rich – by blocking all loop holes that these rich leaders have built into the system –

      It is the POOR that need to be encouraged to a better ECONOMIC HEALTH. Give jobs, Bring health, bring education and build a Middle Class that then earns enough to then give-back to the system.

      Create a sense of security, create an economic growth automatically the you increase investment in Pakistan – giving tax breaks only help rich get richer

    2. molvimajid Avatar

      This is the whole point. Every govt wants to get more and more tax. Problem in Pakistan is corruption. Even if you will keep the tax elevated, no body pays that amount. That is A FACT. If you have access to any record, just check how many companies paid their due taxes?
      If you will keep the taxes elevated, and will even try to take strict measures, they will keep on coming with new ways to not to pay the whole amount. You cannot seal the system until the tax payers themselves are not willing. It is not a secret that now tax consultants are not hired for their services in managing the companies' tax but rather how much they 'benefit' the companies in evading tax. Only very few multinational companies pay their due taxes which is not more than 1-3% of whole tax base.
      Now the point is if we will bring 25% tax to 10%; 35% to 15% etc, the benefit for the companies to evade tax will be lost. Because this is almost the same amount which they want to save. With other relevant measures taken simultaneously, tax base is likely to increase manifold.
      Now the homework for you is, to find out whether 'high but less' tax is better or 'low but more' tax is better 🙂

  2. Soldier Bazari Avatar
    Soldier Bazari

    Moulvi sahib — you are a genius. You have figured out that the problem in Pakistan is corruption. How amazing. You should get the nobel piece prize (Sp intentional).

  3. Naeem Avatar

    Mian Nawaz Sharif is one of the leader who always contributed in chaos and pandemonium when he was at opposition benches. As a result of his dirty politics he was thrown out by Mushharaf but he did not learn lesson. I strongly believe that democratic party can not create hurdles in the way of democracy but the recent speeches Mian Nawaz Sharif clearly shows that this bona partist party wants to return in politics of 90s. The politics of reconcilation does not suit them. Nawaz was and will remain a dictator under the skin of democracy )………Sheer Ki Khaal Pehaan Lenay Say Geedar Sheer Nahee Ho Jata Hay. Mian Sahib must be wise for this time his Saud Masters have also
    drawn their helping hand. This time no would be their to offer him political assylum. He must play his role in nation building by joinging hands with incumbent democratic government.

  4. Ahsan Avatar

    yara at least he is better than zardari. kahin imran nawaz ki larai mai zardari na jeet jae election.