13% SST or Service Sales Tax and 10% WHT or witholding Tax need to be renamed to 13% Provincial Service Tax and 10% Federal Service Tax in Pakistan.
According to the tax lawyers I’ve dealt with the past many years WHT is essentially a service / sales tax that you can forget about ever getting back.
On that note the whole notion of SST and WHT is quite ridiculous. Businesses nationwide struggle to keep up with what and how much they need to charge, more often than not many customer account departments get it wrong. When they should deduct 10% they’re deducting 12%, when they should deduct 8% WHT they’re deducting 10% or 15% WHT.
Worst is and most unfair is when you pay someone with a CASH cheque, they in turn go and cash it from your bank and you get charged 0.3% WHT (for filers) or 0.6% (non filers).
We might as well shift to an all cash only accounting system where you accept cash only payments from customers and pay all your vendors, employees, etc in cash; until we get get fair and just tax rates, and “true representation” that serve the country.
It’s not the private citizen and business owners responsibility to pay for the mistakes and corruption of the government. We should not have to pay for IMF and World Bank loans government’s took out in our name, only to pay themselves.
The government is there to serve the citizen and businesses, instead it feels like citizens and businesses are serving the government with their hard earned earnings. It’s time to stand up and say ENOUGH IS ENOUGH!
originally written as a Facebook post