Editorial-2 Squeezing the already milking cows Share on facebook Share on twitter Share on email Share on print More Sharing Services 1 Indeed the annual federal budget for the year 2013-14 was announced just a week after taking over the government, at least this is an impression flaws in language of the budget give that the budget proposals were prepared and implemented in haste. On Saturday, the Finance Minister, after getting rebuke from the Supreme Court of Pakistan on hasty implementation of the budget proposals, proposed 50 amendments to the Finance Bill, may be, in a bid to pacify emotions running high and extend a legal cover to his follies in the budget proposals. No government in the world can think of implementing its taxation proposals without the approval of the parliament that empowers rulers to rule the country. Knowingly, the PML-N has a sizable majority to in the parliament hence it can enforce its authority whatever way it wants. Otherwise the business of the House is well clear to all especially the Finance Minister. Thus there was no point to by-pass the House. The incumbent rulers must not forget that the country is governed under well-established rules, regulations and laws not on personal whims—at least, this is a message the Supreme Court of Pakistan’s latest decision will send to the power-corridors. In his winding speech in the National Assembly, the Finance Minister withdrew some of his earlier proposals and announced changes in the rates of taxes and duties, including income tax on salary. But mobile users get no respite. However, with withdrawal of the GST on stationery items, milk, dairy products and bicycles, sanity will prevail though the government has to add more essential items to this list to give some soothing effect on the household of the poor and the people from lower income group. The government has withdrawn the rates of Rs25 per square foot on the construction and Rs50 per square yard on the layout or site plan. In stead of taxing the construction industry, that kick-starts indigenous production in well over 44 industries, the emphasis on the taxation should be given to the housing societies and real estate business. The investment in the real estate business, considered to be unproductive, has reached its peak hence it should be discouraged, and the construction industry that creates job opportunities and triggers circulation of money in the market, should be encouraged. The expenditures of the secret agencies have been exempted from audit by the auditor general’s office—it is yet another debatable issue. Cruelly taxed money should be allowed to go unaudited and unaccounted for—a policy needs a review. The reckless taxation as proposed in the budget seemingly aims at complying with the IMF conditionality before entering into negotiations for foreign loans. Otherwise there was no point to tax the already taxed countrymen. Secondly, Pakistan has a vast tax base—every Pakistani who uses electricity, oil, gas and telephone pays advance income tax—no matter his income is taxable or not. The rich, who flout the tax system to evade taxes, escape the grip as usual. First budget of the PML-N offer nothing new or innovative to fill the national exchequer rather relying on squeezing the already milking cows.
Posted on: Mon, 24 Jun 2013 05:01:56 +0000
Trending Topics
Recently Viewed Topics
© 2015