If constitutional rule is to prevail, then taxes must be levied at a uniform rate on all sources of incomes.
LAHORE: This is apropos the finance bill presented recently, which will probably be passed soon, given the numerical majority of the PML-N in the Lower House. A culture of tax evasion and the many loopholes provided for those seeking to make yet another windfall of profits without taxes in this unfortunate country will persist through this proposed piece of legislation. These practices will not be disturbed by the budget.
This can certainly not be termed a business-friendly budget in a true sense, because it fails to broaden the tax net. Nor do these measures include a stable way to ensure economic trickle down or press for an improvement in the law and order situation, which is essential if one seeks to stalibilise the economy and provide an environment for businesses to boom. Just like the budget in the tenures of predecessors like General (retd.) Musharraf and Asif Ali Zardari, this government’s economic policy is focused on protecting tax evaders. It reflects shared apathy for the poor as the government is allowing traders to export potato, reaping huge abnormal profits, creating a shortage and embarking on importing the same. This causes an exorbitant rise in the price of potatoes and begets huge profits for importers and retailers.
There is no rocket science involved in calculating domestic consumption of potato, onions or sugar. These commodities have a demand which is price inelastic and so, it is the sheer competitive instinct and greed of traders which blinds them towards the welfare of the people and encourages them to commit such deeds. Moreover, such criminals are assured of no accountability. Whatever measures exist are simply there to fool the masses.
The manner in which the finance minister succumbed to the demands of retailers by refusing to tax them heavily, makes a mockery of the rule of law and the Constitution, which guarantees equal opportunities and rights for all. If the salaried class is subject to scrutiny and is made to pay taxes, why should the income and profits of retail traders, stock exchange giants and real estate billionaires not be subject to same tax rate?
This is a country where widows and pensioners investing in the government’s National Savings Scheme have to pay a 10 per cent withholding tax on profits, but millions and billions are made by the powerful elite who are then given substantial tax exemptions.
If democracy and constitutional rule are to prevail, then taxes must be levied at a uniform rate on all sources of incomes, subsidies and land allotments. They should not just be levied on the assets of those who are deprived and who lay down their lives to perform duties to protect the state.
Ali Malik
Published in The Express Tribune, June 8th, 2014.
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