Published Date: Oct 15, 2015
Only 49 out of 64,950 companies paid over Rs1 billion tax
ISLAMABAD: Only 49 out of total 64,950 companies of the corporate sectors have paid more than one billion rupees income tax while 39 percent companies have filed their returns with zero tax during fiscal year 2014-15.
According to analysis of Tax Directory 2014-15 done by SDPI, which was launched on Wednesday, as many as 25,000 companies had filed returns with nil income including renowned entities such as Pakistan Television Corporation (PTV).
Total direct taxes amount went up to Rs884 billion in 2014-15 against Rs735 billion last year, registering an increase of 20 percent. The income tax paid by companies/association of persons (AoPs) increased to Rs376 billion as top 500 companies have paid around Rs296 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 number of billionaire club jumped up as it 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 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 paid tax in the range of Rs100 million to Rs500 million, 51 companies paid in the range of Rs500 million to one billion rupees and 49 companies paid more than one billion rupees.
It shows that out of 225 entities of media, the tax paid amount stood at Rs229 million, agro based industries including fertilizer, sugar, food and beverages paid Rs27 billion by 791 entities, 107 banks paid Rs45 billion, 13 construction firms paid Rs13 billion, cotton, ginning, sugar and oil companies paid Rs8.7 billion, 2,839 energy companies paid Rs124 billion, enterprises Rs3 billion, insurance Rs2.7 billion, IT/Telecom Rs13 billion, textile Rs6.9 billion and others Rs129 billion.
In category of media, there is no entity which paid more than one billion rupees while 24 entities paid tax in the range of one million to 100 million.
In agro based industry, three companies paid more than one billion rupees tax in 2014-15.Many renowned companies in category of agro based industry paid nil income tax including JK Agriculture Farms, Nishart Agriculture Farm, Fauji Foods Limited, Halal Foods, K & N Foods, Pak Arab Fertilizer, Coca Cola Beverages, Al Shafi Water and Beverages, Sparkling Beverages (Pvt) Ltd and others.
In banking category, 10 banks paid more than one billion rupees tax. There are many banks which paid zero income tax including ABN Amro Bank, Barclays Bank, Buraj Bank, Citi Bank, Citi Bank Switzerland, First Habib Bank Modaraba, HSBC Bank PLC, KASB Bank, Silk Bank, Soneri Bank, Summit Bank, Waseela Bank and others.
Only 3 companies in construction sector paid more than one billion rupees. Many corporate companies showed nil income tax including Adamjee Construction Company, China Petroleum Engineering & Construction, Doosan Heavy Construction, Global Construction, Indus Cement, Lotte Engineering, National Construction Company, Orascom Construction Industries, Eden Construction, Hawk Construction, M/S British Construction, Mehran Builders and others.
There are 19 companies in energy sector having paid more than one billion rupees in shape of income tax.
There are some entities in energy sector showing nil income tax including Atlas Power, Bestway Power, Gujranwala Electric Power Company, Gul Ahmed Power Company, ICI Pak Power Gen, Jhimpir Power, Kohinoor Power, Lakhra Power Generation, Lalpir Power, Multan Electric Supply Co, National Power Kot Addu, Saba Power, Saif Power, Sialkot Rental Power, Star Power, Sukkar Electric Power Company, Japan Power Generation and others.
There are 4 companies in IT/Telecom sector having paid more than one billion rupees. Interestingly, the SDPI analysis showed that Telenor Pakistan paid zero income tax in 2014-15.
In textile sector, the only company which paid income tax in the range of Rs500 million to one billion rupees and SDPI showed 22 renowned companies by paying nil income tax during 2014-15.