Decision to impose tax in Gilgit-Baltistan deferred
“The prime minister has accepted the request of G-B Chief Minister Mehdi Shah for delay in enforcement of the tax,” a source said.
“In a meeting, Shah pressed the prime minister to award G-B’s share in the National Finance Commission (NFC) award before imposing the tax,” the source said, adding Gilani assured the chief minister that G-B would be given its share in NFC in due course of time and with necessary amendments in the Constitution.
“Shah then requested the prime minister to defer imposition of the tax by the time NFC issue is settled,” the source said, adding the prime minister accepted the request.
The Gilgit-Baltistan government had earlier announced that it would impose corporate tax on all such businesses whose income is over Rs0.3 million. It had also decided to bring the employees earning more than Rs50,000 per month into the tax net to give a boost to revenues of the government.
However, the decision triggered a fierce reaction from the region as not only nationalist parties but also politicians within Pakistan Peoples Party (PPP) opposed it, terming it a conspiracy against PPP’s government.
G-B Finance Minister Mohammad Ali Akhtar was one of the politicians who openly resisted the tax, saying it was a ploy to defame the government. Nationalist leaders including Nawaz Naji, a lawmaker, argued that taxing G-B was illegal, since the region was not constitutionally Pakistan’s fifth province.
According to G-B Public Accounts Committee Chairman Muhammad Ibrahim, the G-B government could generate nearly Rs10 billion from the tax on the corporate sector, registered firms, corporations and salaried class.
Published in The Express Tribune, October 11th, 2011.
COMMENTS (8)
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Tax system is introduced in Gilgit Baltistan,but some people against the tax policy in GB,actualy tax is important economic factor to enhance the our own economy. if you need economic stability in GilgitBaltistan,so the Government should impose tax in our regin.
The second point is that the Government should target those people how is earning more than 5lakh annualy,most of the people earning income are below 30000 per month so the government should not compare with other provinces,
we gilgitis compelled to accept the tax system in gilgit becauseThere is no taxation law in the world under which a country can levy taxes on people living out of its territorial jurisdiction. This is only possible when the people are brought under the ambit of the constitution of that country.For the last over six decades; Pakistan has been considering it its legal right to receive taxes from the people of Gilgit-Balatistan without giving them representation in its constitutional setup. This is illegal and unconstitutional. Besides, taxes are also received sometimes under the name of Sost dry port tax from the local traders and sometimes at the pretext of Dasu development. Sometimes in the name of sale tax a huge amount of money is transferred to Islamabad and sometimes using the pretext of transfer of land the locals are looted.
When it comes to deferring tax matters, we are second to none!
For 60 years GB was not part of Pakistan. It became a part of Pakistan formally in 2009 but it is still not a province of Pakistan. The reason for not taxing them is that they are not considered a province of Pakistan.
How can you tax someone when they are not considered citizens of Pakistan ? There is not much infrastructure although government announced multi billion development package.
You guys dont have tax in one part of the country even after 60 years of independence!!!!!!!!!!!!!!!!!!!!!!! How do you expect the govt to even think of undertaking project works in these areas. One is also forced to think after this whether that area is even governed.
well why should they pay tax when a pakistan has forcefully ocuppied G-B ... What right does GOP has to rule on GB
it not an wise decision while implementing taxation in GB. the living standard and low income rate oppose this decision to implement
I think this not fair with the tax payers that FATA & Gilgit Buldistan people is not paying tax and mostly in FATA they are not even paying Utility Bills.
Common guys there is not free in this world but possible in our beloved country.
*THIS IS NOT FAIR WITH THOSE WHO ALREADY PAY TAX AND INCREASING TAX BURDEN ON THEM ALL ALONE.***
MEDIA CAN YOU GUYS PLEASE HELP US????????????????????