While public representatives are divided over the imposition of income tax in Gilgit-Baltistan (G-B), the public has decried the move.
“It will be unfair to tax the people of G-B,” said Mirza Hussain, a Pakistan Muslim League (Q) member of the G-B Legislative Assembly, reasoning that a majority of the people are poor and cannot afford to pay taxes.
Hussain said that instead of imposing more taxes on the people of G-B, the federal should return the money it collected under various tax heads to help the area prosper. He urged that the public and the elected representatives of G-B to “stand against the decision”.
Nawaz Khan Naji, a nationalist leader and a member of the G-B assembly also rejected the move. He was of the view that federal government cannot impose tax on G-B unless it is given representation in the parliament. “No taxation without representation,” he said.
However, a member of the G-B Council, Amjad Hussain, had a contrasting view. He welcomed the move, saying that since the G-B government is short on funds, money gathered through income tax collections will help the government run its affairs smoothly. He confirmed that a notification to impose income tax in G-B has been issued to the departments concerned.
However, Hussain expressed reservations over the federal government taking the decision without making a written agreement with the G-B government.
“Without a written agreement, levying taxes would create complications for G-B as well as for the federal government,” he said.
As per the government’s notification, people whose annual income is above Rs400,000 and below Rs750,000 are liable to pay income tax at a rate of 10%. The tax percentage is 15% for people whose annual income is between Rs750,000 and Rs1.5 million, 20% for those whose annual income is between Rs1.5 million and Rs2.5 million, and 25% for those whose annual income is more than Rs2.5 million.
Officials of the G-B government said the decision to impose income tax was taken after holding consultations with members of the G-B Council. An official said the council members “agreed not to oppose the decision [to impose tax] in the larger interest of the region”.
Under the Governance Order 2009, the G-B Council is the only body with the authority to impose tax in G-B. The prime minister of Pakistan serves as the chairman of the council.
Published in The Express Tribune, October 31st, 2012.
COMMENTS (4)
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Every citizen is liable to his state so he should contribute for a better future. It will be great if it is going to be used wholly and exclusively for development of GB.
Regarding the tax impossing on GB peoples is totaly disgusting, the reason is what facilaties has given us in GB, in my view nothing, first of all we dont've any opportunity in National Assembly, we've abillity to get the highest rank in any Govt section but! we are not allowed, And what Govt of Pakistan think about our job less poeple in G.B. Is there any high project has launched? No Industry, No Jobs creativity. Although we are paying all taxes as indirectly, as what we buy any thing more expencive than other provision of pakistan, because there is no any goods which are not taxable. So! I'm humbly request to the Govt of Pakistan that consider our situation. Thanks
No taxation with out Representation. Chief Minister personally issued a statement during Hussain Asghar former IGP transfer case that Supreme Court no right to issue notices for GB due to constitutional barriers. Now why and through which law allows you to impose taxes on GB people?