On reports that the government is planning to levy a new tax to finance flood relief.
KARACHI: This is with reference to your editorial of September 3 titled ‘Not the easy way out’ on reports that the government is planning to levy a new tax to finance the flood relief and rehabilitation of flood victims. The proposal includes a two per cent tax on imports and an extra tax of between five and ten per cent tax on those already paying income tax. This is nothing more than burdening those who already pay their fair share and shoulder the bulk of the tax burden.
Of course, no one is denying that funding is needed but it should come from a diverse pool of sources and should not be placed only on existing taxpayers. Why, for instance, cannot the government find ways to broaden the tax base? Also, why cannot the government extend the tax net to include income earned from agriculture? Furthermore, a ‘luxury’ tax can be imposed on imported cars and on the consumption of expensive food. If an individual can eat a meal that costs a thousand rupees then he can surely pay the extra tax to finance flood relief. Also, what happened to the government’s own austerity drive? Resources and funds can be freed up if it is followed in earnest. All foreign tours of members of parliament and hajj and umrah visits should be banned. Ordinary taxpaying Pakistanis should have no issue paying taxes as long as they know that the tax collected will be utilised and not squandered and if the imposition of the levy is fair and just. Apart from all this, such a tax will be inflationary, in an economy already affected by high inflation levels.
Omair Gohar Shafiq
Published in The Express Tribune, September 4th, 2010.
