Government digs its own pockets for funds

KARACHI: The government is evaluating all possible ways to generate funds for rehabilitating flood survivors, informed Kaiser Bengali, Adviser to Sindh Chief Minister on Planning and Development.

Meanwhile, builders are opposing the levy of a prospective flood tax on the ownership of large houses.

Bengali countered “when we go out to the world and ask for aid to rehabilitate flood victims, they ask us what we are doing to generate money from our own resources,”.

The cash-starved government argues that wealthy individuals, particularly those who have not been affected by the  floods, should help the flood survivors. Not only will unaffected people receive a higher price for their crops and goods because of imminent shortages, they are set to accrue benefits in the post-flood reconstruction and development process as well.

President Asif Ali Zardari, according to a media report  appearing on Tuesday, announced that local officials in Islamabad and Karachi have agreed to levy a one-off tax on large urban properties in the federal capital and the Sindh province to raise funds estimated at Rs7 billion ($82 million). Unless the well-off Pakistanis step up, the government will have a tough time soliciting foreign assistance, Zardari added.

Farooquz Zaman Khan, Chairman Association of Builders and Developers (Abad), snubbed the idea as “difficult to implement.” Until the modalities of this proposal are finalised, it is difficult to say anything on this proposed tax, said Khan.

Besides, there are issues in imposing tax on houses where disposable income of the resident is not according to the size of the house. For instance, what will you do about retired citizens, widows or big families living in a big house, he added.

Published in The Express Tribune, September 16^th, 2010.