GILGIT:
Gilgit-Baltistan (G-B) government will generate nearly Rs10 billion from taxes on the corporate sector, registered firms, corporations and salaried class. This was stated by G-B Public Accounts Committee Chairman Muhammad Ibrahim on Saturday, as the government formally decided to bring the region under the tax net on Friday.
He said that the tax will be imposed on all people who earn over Rs50,000 per month, adding that the poor segment of society will not be affected by the decision.
Criticising PML-N chief Hafizur Rehman and PML-Q leader Mirza Hussain’s statements, Ibrahim said that the tax will assist the government to deal with the problems which have surfaced in the region due to lack of funds.
He said that the organisations working on huge projects, including the one that worked on the Sadpara Dam did not pay any taxes in the past. However, after the imposition of taxes, the companies working on Bunji Dam and Diamer-Bhasha Dam will have to pay the tax to the government.
He explained that they were in contact with the Federal Board of Revenue to recover Rs8billion to Rs10 billion which were paid earlier under General Sales Tax.
Dispelling the impression that the federal government was behind the imposition of the tax, Ibrahim said that the decision was taken by the G-B government with the aim to bring prosperity and welfare in the region.
“The federal government has nothing to with the tax. All the revenue generated will go to the G-B exchequer,” he claimed.
“If the federal government wanted to tax the region, it would have done 64 years ago,” he remarked.
Responding to a question, Ibrahim said that the tax would not increase the price of commodities as they were not produced in G-B.
Meanwhile, sources in the G-B Council said that the legislation on the tax would be tabled during the G-B Council Session, which would commence on October 3 and would be presided by Prime Minister Yousaf Raza Gilani.
They said that a high level meeting held in Islamabad on Friday formally decided to impose taxes in G-B, adding that the G-B Finance Minister Muhammad Ali Akhter was not present in the meeting.
Akhter had earlier declared the imposition of tax in G-B as ‘illegal’ due to non-representation of G-B in the parliament. His claim has largely been supported by national parties in the region. Sources also said that his absence in the meeting exposed differences in the PPP ranks at G-B level.
“It is a conspiracy against the government. I am the finance minister but I don’t know where the money comes from and where it goes,” Akhter told The Express Tribune last week.
He accused the bureaucracy of being the beneficiary of the move [tax imposition] and said that the finance ministry didn’t know about the revenue being collected in the region.
Published in The Express Tribune, October 2nd, 2011.
COMMENTS (18)
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@Dare to speak: you status is undecided till , occupied kashmir has a referendum You have no seats in nation assembly, and laws of national assembly dont apply to pakistan.you dont pay tax to national assembly and but you get some funds from national assembly . you are not a province, you get less money than provinces because you are not a province you are not part of NFC award
disslove this set we dont need it we were better before....... Taxing us to feed them thats rude we just dont want our money to spent on corrupiton
@Vicram Singh
Worry about your occupied Kashmir Indian instead of talking of Gilgit Baltistan. You can't even hang a Kashmir allegedly involved in parliament attacks due to backlash and hatred people of IOK have for your occupation and now you are here talking about Gilgit Baltistan which isn't even under your occupation.
First control which you are occupying instead dreaming big. Who knows you might have to lose the occupying territory since Kashmir and India are two different identities which can't remain one forever.
if u want to levy taxes then you should recognize GB as a legitimate part of pakistan and give them rep. in senate and NA. secondly, it is an unjustifiable act by the corrept GB govt to compensate their own useless expense.
Vicram Singh!!!
I belong to G-B. we fought war of independence against Dogra and British imperialism back in 1947 by our Northern scout. our independence day is 1 September 1947 though we celebrate 14 August too. G-B was a state for 14 days which was later made this state part of Pakistan by our Liberal Heros. this is to remind you that we are Part of Pakistan. come to reality boy. Secondly we are not part of Kashmir.
@humayun. why should be we taxed if we are not given the political rights we cannot vote for the formation of federal government we have been kept out of main stream development nothing is been done in education and health sector . we have been a very illiterate if Aga Khan Development programs have not been started in early 80's
people like who believe that we should be taxed , i would like to say that before getting into world politics get to know what is going in our country .Commenting on this blog not make you aware Pakistani . Problem is we Literate ignorants in our country.90 percent of Pakistan still dnt know that where G-B is whether in KPK or a separate entity. We lived in identity crisis for almost 58 years .
yet you should be thankful to people of Pakistan for their loyalty and Bravery Hawaldar lalik jan shaheed (Nisha e Haider ) Order Of Ali . is from G-B.
How can Pakistan tax a "disputed area"? Are they accepting the status quo, which means Kashmir remains with India?
It is illegal for Pakistan to levy taxes on Indian territory - temporarily under its control. India must raise this issue in the United Nations.
They should pay all taxes as we pay.
I register my protest. Pakistan is violating my sovereighty by taxing part of INDIAN state.
What is our legitimate status in the constitution of Pakistan.??? We are having provincial setup with nominal powers what ever federations say its done there. where is our membership in National Assembly ?
GB government do something for these critical legal and political issues before Taxing the people.
This seems to be too early - we have had ignored this region for development since the creation of Pakistan and they were not having the right to vote - now taxing them for just giving them status short of a province without significant development plans is highly unfair.
Similarly America should start taxing Pakistan.
This is very good move and a step forward.It will help GB province progress faster and be financially independent to some extent. Funds will be available for development and to improve quality of life of the people. GB should consider adopting Income Tax Ordinance 2001 like AJK has done.This will make things simple.