An amnesty frustrated
The government may have another chance to get the bills through on Friday
The government has failed in its attempts to get through two bills that had been approved by the National Assembly Standing Committee on Finance. It was seeking to get affirmation from parliament for a much-debated tax amnesty scheme. Opposition parties came together within the committee that was being chaired by the PML-N own Qaiser Ahmed Sheikh and the bills fell. The government may have another chance to get the bills through on Friday.
The bills that were rejected were the Domestic Assets Declaration Bill and the Foreign Assets Declaration and Repatriation Bill 2018. It was the latter that has stuck in the throat of the opposition who see it as a thinly-disguised attempt to persuade the very rich to park their wealth in Pakistan rather than offshore. The government was offering foreign currency account holders the opportunity to declare their assets at only 2 per cent taxation rather than the usual domestic rate of 5 per cent — a considerable inducement. There are a range of attempts by the government to bully through moves that it sees as advantageous to its supporters in the run-up to the election. The wealthy are the chosen targets but the lumpen proletariat are largely ignored.
A fortnight ago the opposition to the bills was already getting itself organised, questioning why the bills needed to be introduced so close to the dissolution of the National Assembly and so close to the new budget — and anyway what ‘financial emergency’ was there that warranted their tabling? Fiscal ordinances are normally only tabled in the event of a financial emergency and apart from the rolling mismanagement of the government finances more generally there is no emergency on the horizon. With the government starting to hyperventilate as deadlines tighten and the opportunity make an impact of a positive nature rather than provoking the flight of skittish elected members fearful of a jumpy electorate narrows; promulgating dodgy bills designed to line the pockets of the rich is not the wisest of moves. The government’s persistence will also be noted by the Financial Action Task Force waiting in the wings and taking notes. The word ‘blacklist’ comes to mind.
Published in The Express Tribune, April 25th, 2018.
The bills that were rejected were the Domestic Assets Declaration Bill and the Foreign Assets Declaration and Repatriation Bill 2018. It was the latter that has stuck in the throat of the opposition who see it as a thinly-disguised attempt to persuade the very rich to park their wealth in Pakistan rather than offshore. The government was offering foreign currency account holders the opportunity to declare their assets at only 2 per cent taxation rather than the usual domestic rate of 5 per cent — a considerable inducement. There are a range of attempts by the government to bully through moves that it sees as advantageous to its supporters in the run-up to the election. The wealthy are the chosen targets but the lumpen proletariat are largely ignored.
A fortnight ago the opposition to the bills was already getting itself organised, questioning why the bills needed to be introduced so close to the dissolution of the National Assembly and so close to the new budget — and anyway what ‘financial emergency’ was there that warranted their tabling? Fiscal ordinances are normally only tabled in the event of a financial emergency and apart from the rolling mismanagement of the government finances more generally there is no emergency on the horizon. With the government starting to hyperventilate as deadlines tighten and the opportunity make an impact of a positive nature rather than provoking the flight of skittish elected members fearful of a jumpy electorate narrows; promulgating dodgy bills designed to line the pockets of the rich is not the wisest of moves. The government’s persistence will also be noted by the Financial Action Task Force waiting in the wings and taking notes. The word ‘blacklist’ comes to mind.
Published in The Express Tribune, April 25th, 2018.