Britain is due to double its assistance to Pakistan to $675 million, making it the biggest recipient of British aid. DESIGN: FAIZAN DAWOOD
Britain is due to double its assistance to Pakistan to $675 million in 2014-2015, making it the biggest recipient of British aid.
But parliament's International Development Committee said it was unfair for Britain to fund health and education projects unless Pakistan's new government, due to be elected in May, tackles "rife" corruption and tax evasion.
"We cannot expect the people in the UK to pay taxes to improve education and health in Pakistan if the Pakistan's elite is not paying income tax," the committee said in a report.
"Pakistan's rich do not pay taxes and exhibit little interest in improving conditions and opportunities for Pakistan's poor."
Citing figures from the Pakistan Board of Revenue, the committee said only 0.57 percent of Pakistanis paid income tax last year - and that no one has been prosecuted for income tax fraud for at least 25 years.
Less than 30 percent of Pakistan's members of parliament pay tax, it added.
The committee said there was a "powerful case" for continuing its aid programme to Pakistan, a country with "real poverty and serious security problems" as well as strong links to its former colonial power.
But it added that past donations have often failed to reach poor Pakistanis because of corruption.
Britain's international development ministry said aid to Pakistan - a nuclear-armed state - was "predicated on a commitment to economic and tax reform".
"We have made it clear to government and opposition politicians in Pakistan that it is not sustainable for British taxpayers to fund development spend if Pakistan is not building up its own stable tax take," a spokesman said.
"Following the election we will make available practical assistance to the incoming government to help deliver reform of the Pakistan tax system and work with the IMF, but tax and economic reform must take place."
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@talaat aziz Really?
Gulam Rasool"Kuldeep sharma" New Delhi
Why does a county that spends a good chunk of its GDP on the military and nukes need foreign aid?
@Khan: Who is responsible for dismemberment of east wing /people or politician? including military might?
who presented six points agenda which created circumstances leading to east pakistan's separation
Committee's head further stated that past donations as record witness,was failed to reach the poor pakistanies really deserved for because of high level corruption.
Shame, shame,shame.
@Khan: Its a trend that we put all blame on Politicians, they’re our best scapegoats .. lets not forget total population is 180 million out of that only a few thousands are politicians. Each one of us try to avoid tax some how. If only politicians are to be blamed then Did we achieve over 80% tax collections in times of military rules spanning more than 30 years?
No no, disafreed absolutely disagreed,it is not a trend it is a ground reality politicians are not scapegoats they butcher loots and explite the people,According to fair and impartial investigation less than 30% parliamenterian and politicians of Pakistan pay income tax,vide the citing figures from the Pakistan Board of revenue,no one has been brought to justice for income tax fraud for at least a decade.
On the other hand people in tax fraud cases has been arrested tried convicted and setenced. and they are compelled to pay illegal gratification saving their skin.
@Scotchpak:
Pakistan is not equired to return the "Aid money"! UK is using the ploy of tax to justify to their own tax payers that Pakisan deseves help.
Rex Minor
As a "rich" Pakaistani I have same Brits give "aid" to the elite of this country with dubious conditions attached. If the Brits give AID to the people of pakistan, the people will not only retun the aid with interest (and presumeably pay their taxes). AT THE VERY LEAST show the people the cheque you have isued to us so that we know you have issued cash and are assured its not "international insider trading"
@Saleem: I think the analogy with Saudi Arabia is inaccurate. It's like comparing apples and oranges. Saudi Arabia does not need -- or take -- development aid from outsiders, and hence can talk about its sovereignty. Pakistan, on the other hand, is a beggar nation that constantly bites the hand that feeds it. Britain is not unjustified in seeking accountability from Pakistan where it is easier to get all your 32 teeth extracted than paying taxes. If Pakistani's upper classes paid its taxes truthfully and regularly, Pakistan would not be in such a crisis today. Development in the country is zero. If modern education -- not madrassah brainwashed ideologues --was promoted, Pakistan would have created the next generation of nation builders. Instead, we have sowed the seeds of religious violence and self-destruction propagated by mullahs who seek self-aggrandization and power through the vehicle of religion. Our trade and business have steadily plummeted, causing us greater human hardship and raising the levels of unemployment. It is a terrible mess and many like me, who have been educated abroad, wonder what will become of this country which is sliding into the stone age.
@Ali Bajwa: Wake up man and smell the coffee. You are talking about sovereignty when you don't know what it really means. Pakistan, as a pauper nation, has forfeited its right to demand respect. The money that many well-meaning donour countries have been pumping into a totally bankrupt country -- tiny Bangladesh, a former eastern wing of "motherland" Pakistan, has better creditworthiness amongst international lenders than Pakistan -- has been going straight into the pockets of corrupt politicians, military and, now, even the mullahs. Pakistan is a bottomless barrel which will suck any amount of money without providing any accountability. One does not throw tax-payer's money out of the window by supporting a country that funds terrorism, persecutes and kills minorities, including women and children, and sends killers with army assault rifles to murder innocent civilians in other countries. Pakistan's constant whining that the world has "neglected" it and ignored its "sacrifices".is the height of hypocrisy. Millions of Britons, Europeans, Japanese, Canadians and, of course, Uncle Sam are furious at the conduct of Pakistanis. You could also learn from neighbouring India against whom you have a genetic hatred nurtured by your hate-spewing mullahs and military who will blame all the country's woes on India and Indians. As a meteorological expert, I was amazed to hear some responsible Pakistanis say on television that the floods caused in Pakistan (a year ago) was the work of Indian scientists who were "manipulating" weather conditions in the Pakistani stratosphere (?) That is low even by Pakistani standards!!
@Ali
Last time I looked Pakistan was a Democracy and the corrupt and incompetent politicians your referring to were elected by the people of Pakistan. If your looking for someone to blame try looking in the mirror.
Parliament International development Committee, deeply investigated in the light of prolonged experience. then announced the judgement,Good decision that is best in nature.
@Saleem: "They would not dare tell the saudis to improve their human rights for fear of loosing lucrative contracts."
Do the Saudis get aid from UK? If you read the newsitem, UK is simply saying tey should not give aid to a country when they are not sure it will those it isintended for due to corruption. What is so unreasonable about that?
If we had any self respect, we would stop taking AID period! The only way this nation can stand on its own two feet is stop living off other nations.. We do need to collect more taxes... NOT to get more AID... but to live with some self respect as a self sustained nation.
@sultan ahmed:
Its a trend that we put all blame on Politicians, they're our best scapegoats .. lets not forget total population is 180 million out of that only a few thousands are politicians. Each one of us try to avoid tax some how. If only politicians are to be blamed then Did we achieve over 80% tax collections in times of military rules spanning more than 30 years?
No fear,will say true, There are underground communication in between payers and collectors.At the end of the year secret meetings are held parties are materialsed with legal advice to evading the tax there is no need to appoint lawyer all the ways are opened to the parties leading to tax evasion.
At last, in the budget session,finance minister deliver a happy news titled Budget Deficit, in the parliament. Under the existing circumstance the decision taken by the international sevelopment committee is based on best footing,It would proved a best assistance in preventing corruption and improving some other matters affiliated with sysytem.
@talaat aziz:
Go back to your mountain that suits you and stop using computers, internet, electricity, fridge, cars and all the medicines that are invented by western nations. One must applaud Sir Malcolm Bruce chairman of the committee for his efforts in this regard. Wish if American follow the British by attaching such strings which can bring positive change in our country.
@Ali Bajwa: "Is this not a violation of a states’ sovereignty under international law?"......West and quite a lot of EU nations look at Pakistan as beggar country and beggars don't have sovereignty. Hence it is important for Pakistan to focus on development more than encouraging mullahs and "assets" to cause disruption of life within and outside Pakistan. It's a well wish and not a taunt.
God Save the King!
It is ridiculous to give aid to Pakistan when majority of the Pakistanis do not pay taxes. I as a Pakistani support this idea of not giving aid to Pakistan unless they pay taxes and bills (after which there will be no need for aid money). Also stopping aid for Pakistan will force lazy govt and politicians to do something about tax collection and net.
@Ali Bajwa: "Is this not a violation of a states’ sovereignty under international law?"
Not at all. You need to do what they suggest only if you want the aid. If you don't want aid, you can exercise your sovereignty about corruption eating away development expenses, which are low in the first place due to few people paying taxes.
Hollow statements by the Brits. They have supported dictators and despots as long as it suits their financial interests. They would not dare tell the saudis to improve their human rights for fear of loosing lucrative contracts. Their so called ethical foreign policy is a fig leaf just like the mantra of democracy and human rights.
Great decision. Please do it so that we and our dearest government can learn to be independent and work for the betterment ourselves rather relying on other countries. Anyways why will the public care about this decision when your aid never reaches them but directly goes to the big pockets of our government!
who are great tax evaders? politicians ,simple.
We are not beggars. Take all your money back. Muslims should not rely on wester nations.
I fully support the Brits in their commitments as they make it conditional, It is going to happen in the US too if we the Pakistani community living in the US could help make the same conditions for US aid to Pakistan, this has been going on for decades. One should go and look at the parking lot outside the NA and will see cars and SUVs worth millions and 70% of them don't pay their fair share of taxes.Times has changed and Pakistani elite has to change with it or they will be out casted eventually.
@Ali Bajwa: They are giving aid to you...They have the right to give or not....
If you visit an orphanage and see that the staff are all living comfortably while the orphans are starving..Will you give money to them???
The income tax cheat is the serious concern in the European Union as well. American companies as well as foreign investors use every possibility to avoid payment of income tax in the country where they earn! Can any rational person understand great millionaires coming from Pakistan as well as India, while millions rot in thei counties out of poverty. Is it difficult to demand from the incumbent Pesident Bhutto Zardari and former Pesident military soldier to make thei incomes and income tax statements tansparent. Watch across your shouldes what is occuring in France when the Budget minister was keeping his Bank Account n singapur to avoid income tax. Pakistan millionaies are eported not to pay because thy have never paid. They own properties in the UK, Europe and the Gulf States, thei children are raised and schooled in English speaking countries, they spend their wealth in foreign counties and most hold dual Nationalities. Out of the 180million people only 7% ae reported to pay the income tax. It is not that better in India or other neghbouring counties.
Like the yanks, as long as they hold Pakistan nationality, their total income must be reported to the Income Authorities in Pakistan and be taxed as appropriate.
Rex Minor
I agree with Friends from Pakistan to fix home first.
Fully agree with British lawmakers.
Well, if the fake degree holders are given jail sentence then why no conviction for the ones who do not pay taxes which is adversely affecting the economy of the country and stoppage of vital foreign aid ? Will the Apex Court of Pakistan take Suo Moto cognizance on this important issue ?
best decision by British, keep it it , US also take such actions.
plzzzzzzzzzzzz do it. It would be a real help to the people of Pakistan.
Britain dictate things as if they are still colonized in pakistan.Ofcourse pakistan do not have any other choice and to agree west demands for more dollars.First thing pakistan have to do is to cut defense budget to half.This will solve some of there problem.
Economic reforms, and rationalise taxation. The higher taxation offends any prospective investor. Pakistan's wealthy keeps their money's outside the country. We have to make Pakistan a Tax Haven. Tax pay. Ter identity, and respect, incentives be given.
veryy trueeeeeeeeeeeee.. shame things which we should do other countries are asking us 2 do..d elite should pay taxes and so do the parliamenterians.
Yes. Aid to Pakistan should be stopped unless all sources of income are taxed and the number of tax payers goes upto atleast 30,00,000 and tax to GDP ratio comes to 14%. There are about 15,000 Sales Tax payers in Pakistan. What the aid is doing is making the government lazy in levy and recovery of tax. UK tax payer is paying for tax cheats in Pakistan
Very well said. Country like Pakistan i.e rich with resources and human capital does not need aid. Instead of giving aid my advice to the UK and US would be to stop protecting and promoting corrupt and incompetant politicians and generals and let people choose who they really want to run the country. And people should choose wisely and should not re-test the parties that have already been part of putting this country in the mess it is in right now.
Is this not a violation of a states' sovereignty under international law?