Dodging the tax man: Talal Bugti claims tax exemption for family

FBR insists that there is no such provision in the 2001 ordinance.


Zahid Gishkori April 13, 2013
Talal Bugti is the only candidate who, through his nominations papers, informed the ECP that he enjoyed immunity from filing tax returns. DESIGN: ESSA MALIK

ISLAMABAD:


While many poll contestants are scrambling to fix their tax documents, there is one family that isn’t daunted by the tax man.


Talal Bugti, chief of the Jamhoori Watan Party (JWP) and scion of the late Nawab Akbar Bugti, claims his family is exempt from paying taxes. “Nawab Akbar Bugti’s family is exempted from taxes — that is why we don’t file tax returns,” said Nawabzada Talal Bugti, without explaining why his family was not supposed to pay taxes to the state.

All this comes amid calls from different political parties that the Election Commission of Pakistan (ECP) must prevent tax evaders and loan defaulters from entering parliament.

Talal Bugti is the only candidate who, through his nominations papers, informed the ECP that he enjoyed immunity from filing tax returns. He is running from NA-259, Quetta. “The Bugti family runs shops and farms, which are the major sources of their income,” he told the ECP. Last year, his family earned over Rs2.6 million from this business. He also has Rs200,000 as net cash in a local bank while he owned property, jewellery, and several other assets worth millions.

The Federal Bureau of Revenue (FBR), however, said that no individual under Part VII of the Income Tax Ordinance, 2001 was exempted from taxes. The part VII, which deals with exemptions and tax concessions states that there is “no exemption to individuals from any tax imposed under Income Tax Ordinance 2001.”

According to ex-FBR chairman Abdullah Yousaf, no individual was generally exempted from paying taxes. “Any person whose income exceeds Rs 400,000 per annum is liable to pay taxes,” he explained. He, however, did not recall whether the Bugtis were exempted from paying taxes.

Published in The Express Tribune, April 13th, 2013.

COMMENTS (10)

Asim | 10 years ago | Reply

I thought he is the chap who drives around in Hummers and Mercedes with tons of guards. If they only make Rs 2.6million in a year how can afford to keep such luxuries.

Baloch | 10 years ago | Reply

We don't take Talal Bugti seriously in Balochistan and you shouldn't take him either. He was kicked out of Bugti family while Nawab was alive, he cannot claim anything now. He is one of the state sponsors to further divide the Bugti family along with Aali Bugti.

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