Pakistan Muslim League-N (PML-N) Rejects RGST

Lahore, News Trends :- The Pakistan Muslim League-N (PML-N) will not support the federal government on the issue of the Reformed General Sales Tax (RGST) and will not allow the government to increase the burden on the masses, party Chief Nawaz Sharif has said while
addressing a public gathering in Sheikhupura on 11th December. Nawaz Sharif took a right stand and suggested the Pakistan People’s Party-led government should focus on eliminating corruption instead of increasing taxes. He urged the need of a revolution needed to combat the troubles faced by the people, and to fight unemployment, poverty and injustice.

An IMF team is present in Islamabad to ensure implementation of tax reforms. The reforms in the general sales tax to be introduced through proposed General Sales Tax Act, 2010 would help achieve the desired target of documentation of economy and would remove exemptions available to various sectors. Some informal sectors are also to be brought under GST regime which is even more than formal sector. Documentation required through the proposed legislation would not only to document each and every transaction after import or local production at all levels but also to help document annual turn over of the businesses for determination of income tax liability of the registered entities.

There is no doubt the State is in dire need of increasing its tax revenues by broadening its tax base which has increasingly became distorted and narrow-based due to poor Government policies. But it is duty of the Government to keep the tax burden as low as possible and increasing the numbers of taxpayers simultaneously ensuring that taxes are applied equally and fairly to everyone. The government should rather reduce tax rates on income and business profits that help to sharpen incentives to work and create wealth in the economy as a strategy to enhance long-run growth. Tax base should be broadened by levying Direct taxes on “pay as you earn” basis instead of levying frequent indirect taxes like RGST which is highly inflationary and passed on by the suppliers to the final consumers, or highly taxing the people through escalation of prices of oil, electricity and gas etc. The overall taxes that a person pays can be reduced by proper planning and making appropriate adjustments; it should be governed by people’s ability to pay, that is, wealthier individuals or firms with greater incomes should pay more in tax while those with lower incomes should pay comparatively less and every sector of the economy should be taxed.

The current system of taxation is completely ineffective – which needs to be revolutionized by bringing more people in the tax-net. Corrupt, inept, dollar-hungers and downright cheesy characteristics sums up the personal attributes of the vast majority of Pakistani politicians and generally the closed club of Pakistan’s ruling elite, barring few gentle exceptions. They formulate the policies keeping in view their personal interests instead of that of the nation. Policies are modified even for one person or one class. Due to these reasons a good tax culture could not find roots in Pakistan. Only poor of the poorest and salaried class persons comes in the net of taxation and “elite club” is always exempted from all sorts of taxes. The MNAs, MPAs, Minister and other Government dignitaries who want taxes from the poor public, themselves do not pay taxes. Pakistan’s Taxation system is characterized by widespread tax evasion, and annual tax evasion by the “Elite Club” comprising politicians, military and civil bureaucracy, and some businessmen stands at around Rs.1000 billion. Just imagine many ministers – majority of whom are feudal lords with big land holdings – including Prime Minister Yusuf Raza Gilani, paid taxes based only from their salaries as lawmakers, not from their private fortunes. There are even ministers who have paid less than 10,000 rupees (US$117 ) as their annual income tax. Due to a non-transparent process and weak accountability system, public sector expenditures are officially misused by the ruling elite, thereby, kickbacks and pilferage of revenue is in connivance with the public officials.

The state is responsible to provide basic fundamental rights and facilities but has totally failed to fulfill expectations of the poor people. People are more frustrated when they see the ruling elite’s social life and their living standards. If you go down in the markets or any other public places and listen to people’s views, you would wonder whether our politicians are in touch with their people or doing something for them. This is in sharp contrast to the common people. We should admit that non state actors, militants and extremists have again consolidated their positions due to the government’s poor policies. This is perhaps the last chance for our ruling elite to mend their ways and restructure their policies and politics in line with the people’s expectations. To impose a Reformed General Sales Tax on an already highly impoverished society is not the answer, especially since this is more likely to worsen an already untenable situation as legions of micro-businesses react to the new tax by shifting to the informal sector. The correct response is to strengthen direct taxation, especially on the wealthy land-owning elites who dominate Pakistan’s quasi-feudal society. Introducing land value taxation and strengthening tax compliance among rich people and companies should be the medium term priorities. They should keep in mind; only a surfer knows the feeling.

In the end, I would humbly request my brothers and sisters countrymen for God sake; your vote is your voice and there is more power in it then in most things you do. It is a lost pleasure, the power of that voice. Use it. It should make no difference if that one comment does not carry the decisive power, but it will resound in Pakistan. Raise your voice for an independent judiciary; rule of law and social justice, rake over coals the renegades and traitors. Choose your brave and honest heroes out of your own rows, salute them, and help them help you! Due to our constant wrong use of vote or avoiding its use, corrupt politicians have created the issue of survival of Pakistan and Pakistani society. On the one hand people are committing suicides due to starvations and financial hardships and on the other hand assets of a few politicians, bureaucrats, and some businessmen are expanding with each past day. Stand for your rights and social justice from today. God will help us, Inshallah.

Increasing External Intervention in Pakistan

US Ambassador has recently emphasized on ‘urgently needed’ reforms like Reformed GST, and is strongly lobbing to ensure its proper legislation. The United Kingdom has also declared RGST as indispensable for the survival and growth of the Pakistan’s economy and has declared that the donors could never come forward to extend financial assistance unless the well-off segment in Pakistan is made to pay taxes.

United States wants a direct and all-time presence at our political, financial, and defense scene on permanent basis. This is the most outrageous demand any country in the world has ever made but it is very painful for the citizens of Pakistan that our foreign office gives very lame and soft responses to these highly vital issues, obviously on the advice of sitting Government. Recent statement of the US ambassador regarding Reformed GST is also an open interference in the internal affairs of our country. Pakistan needs to deal with US with stern and tough hands over such interferences. US interference has been allowed in the change of command and promotions in the Pakistan armed forces and the structure and role of security forces of Pakistan and conditionality have been attached, which impinged hard on the defense of Pakistan. In the meantime, Zardari-led government continues to facilitate the US-Nato agenda of so-called “war on terror” for its personal gains by further pushing Pakistan into worst position. This is in spite of a rising public resentment against the US-Nato; nearly 90% of Pakistanis consider America quite negatively due to its wrong policies. Disappointing and disturbing as it is, the so-called “war on terror” has been so far worked in favor of Zardari. The Zardari regime never minds spilling Pakistani blood. It is in that background that in spite of an absolutely abysmal political management performance, loss of public support and credibility, Zardari led regime is still enjoying full support of UK and Nato and continues to receive the full support of its masters in Washington also.

Backed by USA, IMF is dictating the government to introducing reforms in GST and enhancing tariff rates of electricity and gas as well as price of petroleum products. The tax system overhaul, under the terms agreed with the IMF, entails taking away tax exemptions and slapping 15 per cent tax on services, further fueling the hardships already being faced by common people. The conditionalities imposed by the IMF have broken the backbone of a common man. Poor man in Pakistan is paying a hell a lot of tax indirectly and is being further burdened by IMF’s policies. Obviously tax base should be broadened but it should be the direct taxation and should be collected from ultimate thieves, feudal and land mafias who have been eating country like termites since its creation.

Pakistan’s “economic curse” is that the ruling elite, bureaucrats, politicians and the military establishment have worked absolutely in their own interest, and not that of the people at large. Pakistani leadership has been living beyond its means for decades. Its government expenditure, where in the world would you see a country in dire straits giving scores of Prado’s (12.5 million), Land Cruisers (16.5 millions), fleets of Toyota Hilux, Sedan’s & even Range Rovers (b/t 12.5 – 15 million) to its ministers & provincial & federal officers. The personal weaknesses of our top leadership are weakening the defense of Pakistan and endangering the sovereignty and integrity of the country but their greed seems to have no end. The cat is now out of bag. The latest Wikileaks revelations have disclosed the crooked interactions that took place behind the smokescreen of American diplomacy. The US government has not denied the authenticity of the released cables and none of the Pakistani leaders quoted in the leaks has denied having said what was reported. For us also, there is no valid point to dismiss WikiLeaks as rubbish, nothing new or even a conspiracy.

The United States has denied any involvement in the Pakistani political system as it reaffirmed its support for the so called civilian rule, saying the return of democracy has strengthened the key regional country. We have an effective relationship with President Zardari and that will continue, they say. No doubt, Pakistan and USA have very close relations since 1947 on the basis of “needs”. One, on the military side, there is extensive cooperation between the Pakistani military and the United States military, and the people of Pakistan would welcome that to continue. Though USA has always helped Pakistan both militarily and financially as well as in natural disasters and both the countries do understand the need of long lasting relationship, but in the present regime USA is controlling Pakistan like a puppet. The only reason is that the actions of our top leadership in the present regime constantly remained below dignity that encouraged the US authorities to dictate it in every sphere otherwise in normal course they keep very decent relations with other nations. Take the example of India; it is considered far superior and economically respected nation in the world and US as well as other nations interact with them with dignity and respect only due to its credible leadership.

USA should realize that their explicit involvement in the affairs of Pakistan is counterproductive. Rather than reconfiguring them as friends and saviors, the Pakistani beneficiaries of US aid rather become subsumed. Zardari is supported by the US despite political repression of Pakistan’s citizens. Will the association with Zardari, having a most corrupt history, being at the lowest of his popularity, and having no loyalty even to his own country and his countrymen can prove trustworthy for US in the long run? Generally, political relationships with such like people do not work on long term basis. The people of Pakistan consider Zardari as oppressor who, instead of stopping corruption, is inflicting more and more taxes on the poor. Due to unconditional support of US Authorities to such an unpopular leader ultimately create resentment against USA and its all activities are seen by the people of Pakistan very negatively. If USA wants long term relations with Pakistan it should work for the people to win their hearts instead of underhand dealing with the ruling elite, as the people of Pakistan are frustrated by the vulgar nature of political system prevailing in Pakistan.

Pakistan is blessed with excellent human capital with majority of the youth, second to none, the people are very, very talented. Face of the people that is presented by our ruling elite for its own objectives is not real. There are few people involved in extremism and most of the people I would say above 95% are very simple, loving, peaceful, and moderate. People to people frequent contact would bring positive results for USA. I urge US government to be soft in immigration visa policy for most young Pakistanis professional, journalist, student and labor class men and women to work in USA, and to invest maximum of its aid in the education sector in Pakistan. Every well meaning Pakistani should be grateful and appreciate those having the commitment to help establish strong institutions. It should result in greater public trust in the entities including US helping them achievement of long-term prosperity, sustainability and social well-being.

Ruling, opposition Senators’ strong protest, discontent on RGST

Staff Report

ISLAMABAD: Senators of the ruling allies and opposition parties have strongly protested while expressing a stern discontent on Reformed General Sales Tax (RGST) in the Senate on Friday.

The session of the Senate, chaired by the Chairman Farooq H Naek, began today morning. During the session exchange of hot words took place between the Chairman of the Senate and Mutahida Qaumi Movement’s Senator Babar Ghauri.

Babar Ghauri argued that they will not allow the presentation of RGST report, of the Standing Committee on Finance, in the house. The Chairman Senate argued that the house can not be run under shout and unrest.

The Senators of Awami National Party staged a walked out, headed by Senator Zahid Khan, to protest against the arrests of the Pakhtoons in Karachi but Federal Interior Minister Rehman Malik and the leader of the ruling party

Govt. okays nominations for judges committee

Staff Report

ISLAMABAD: Ignoring its coalition partners, the federal government on Tuesday approved four names for a parliamentary committee, formed to approve judges nominations.

Top PPP leadership has also endorsed the nominations, including Asma Arbab Alamgir of Khyber Pakhtunkhwa, Sindh’s Aftab Shaban Meerani, Balochistan’s Sabir Balochistan and Nayyar Bokhari of Islamabad.

All the nominated members belong to the ruling PPP. Trend Pk

3 killed, 5 injured in Bangladesh bomb attack

DHAKA: At least three people were killed and five, including a lawmaker of the ruling party, injured in a suicide bomb attack in Bangladesh on Saturday, police said.

The bomb was detonated at the residence of Afaz Uddin, an Awami League member of parliament, near Khustia, 300 km (190 miles) west of the capital Dhaka.

Police would not say whether they thought the attack was related to Saturday’s widespread violence over the eviction from her home of opposition leader Begum Khaleda Zia. AGENCIES

SC orders registration of cases against fake degree holders

Staff Report

ISLAMABAD: The Supreme Court on Friday ordered the Election Commission of Pakistan (ECP) to file cases against the parliamentarians holding fake degrees.

A three-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry gave this ruling while hearing a plea filed by ex-MNA Amir Yar Awaran against his disqualification over possession of bogus degree.

Attorney General told the apex court that restructuring of the Election Commission is under process and in line with the prevailing law; a case could be registered against any fake degree holder in Session court.

The court ruled that there was no confusion in the decision and that any concerned officials of the ECP can file cases against fake degree holders. Trend Pk

PM Gilani aware of load shedding, unemployment

Staff Report

MULTAN: Prime Minister Syed Yousuf Raza Gilani said that he knew there is load shedding and unemployment in the country, adding that his party, the ruling party Pakistan Peoples’ Party, will fulfill its promises.

PM Gilani addressed the program held by the Pakistan Baitul Maal on Thursday in his home town, Multan.

He was of the view that, the issues of the provinces have increased after provincial autonomy.

PM Gilani said that the poor people of Pakistan would be given relief after the completion of the poverty survey. Trend Pk

Brazil’s presidential election heads for runoff

Brazil’s presidential election is to go to an October 31 runoff after the ruling party candidate, Dilma Rousseff, won elections but not by enough to avoid a second round, the High Electoral Tribunal said.
Rousseff won 47 percent of the ballots Sunday — short of the absolute majority of 50-percent-plus-one-ballot required to obviate a knockout round against second-placed challenger, former Sao Paulo governor Jose Serra.
We can confirm there will be a second round in the presidential elections, Ricardo Lewandowski, the president of the High Electoral Tribunal, told reporters in Brasilia.

India court says mosque site to be divided

LUCKNOW: A court ruled on Thursday the site of a demolished mosque in India would be divided between Hindus and Muslims, in a ruling that could appease both groups in one of the country’s most divisive cases.

The court in the northern state of Uttar Pradesh also ruled that Hindu idols could stay on the disputed land, lawyers added.

The demolition of the 16th century mosque by Hindu mobs in 1992 triggered some of India’s worst riots that killed about 2,000 people. More than 200,000 police fanned out in India on Thursday to guard against any communal violence.

If the ruling soothes tensions, it would be a boost for the the ruling Congress party, a left-of-centre group with secular roots, that does not want to upset either voter bloc. Major political parties had called for calm.

The verdict came only days before Sunday’s opening of the Commonwealth Games

India court says mosque site to be divided

LUCKNOW: A court ruled on Thursday the site of a demolished mosque in India would be divided between Hindus and Muslims, in a ruling that could appease both groups in one of the country’s most divisive cases.

The court in the northern state of Uttar Pradesh also ruled that Hindu idols could stay on the disputed land, lawyers added.

The demolition of the 16th century mosque by Hindu mobs in 1992 triggered some of India’s worst riots that killed about 2,000 people. More than 200,000 police fanned out in India on Thursday to guard against any communal violence.

If the ruling soothes tensions, it would be a boost for the the ruling Congress party, a left-of-centre group with secular roots, that does not want to upset either voter bloc. Major political parties had called for calm.

The verdict came only days before Sunday’s opening of the Commonwealth Games

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