A game of several halves

No tax regime is likely to produce more effectively unless the wealthiest come within the tax net


Editorial December 22, 2017

It is the job of every prime minister everywhere to put the best possible gloss and spin on both their government and the country that it is responsible for running. Prime Minister Abbasi was on point duty on Wednesday 20th December when he addressed members of the Faisalabad Chamber of Commerce and Industry (FCCI) saying that industrialisation in the country was gaining momentum as the government overcame the problem of energy shortages, not exactly a difficult point to make at a time of the lowest demand for electricity — and those without gas may look askance as well.

The PM was in a forward-looking mood. His government wants to cut the cost of doing business and it was for the private sector to pick up speed and establish new industrial units always assuming a continuous supply of gas and electricity — which has to be delivered at affordable prices. For governments’ part there will be improved infrastructure — yes yet more roads, the hallmark of this government — and possibly another airport as well but given the lamentable progress of the airport to replace that currently serving Islamabad perhaps breaths should not be held.

Muddy waters appeared with mention of the introduction of a taxpayer-friendly culture within the Federal Board of Revenue. No tax regime is likely to produce more effectively unless the wealthiest come within the tax net and everybody else chooses to pay at least occasionally. Most do not. The development of a new Expo Centre was handed to the private sector as a commercial proposition and the huge export potential got a run around the track — despite exports actually being in decline and standing at a mere $20 billion a year. On a cautionary note regarding regulatory duties, he said that — “We have to discourage imports of unnecessary luxury items” — hardly a vote winner with a burgeoning middle-class flush with disposable income. It was a competent-enough job, but as much a wish list as a national plan. If the government wins the next election and it probably will but with a decreased majority, how those wishes get fulfilled will be closely observed.

Published in The Express Tribune, December 22nd, 2017.

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