I live in Pakistan and we have been going through a terrible economic turmoil. On top of indirect taxes, the salaries of average people are taxed like crazy. Meanwhile, the businesses refuse to even come under the tax net. While inflation and currency devaluation are going crazy, and the government has been begging IMF for a bailout, government departments did mental gymnastics to provide relaxation to 5,000 out of 10,000 big retailers tax relief with bullsh*t reasons like size of their brick and mortar shops. Iām so sick of all of this. Sorry for the trauma dump. Iāve been incredibly frustrated.
Most countries have an army, but Pakistanās army has a country.
-Unknown
Karachi still largely relies on paper money rather than cashless transactions (I live in the UK and hardly ever carry cash on me). So it wouldnāt surprise me if businesses are underreporting their revenue so they can avoid paying taxes. If a business insists on cash in the UK, thereās a good chance theyāre underreporting their revenue.
If a business insists on cash in the US, thereās a good chance theyāre selling drugs on the side.
This is 100% the case. I also donāt like to carry cash but the amount of business, even the ones youād expect to be well integrated with basic payment technologies, will try their best to discourage electronic payments. It is honestly very disheartening.
You know processing electronic payments cost businesses money? Iād encourage cash too, even with perfect reporting.
