If the finance minister does not disclose assets, who will?
Dr Abdul Hafeez Shaikh is yet to declare his assets and the amount he paid in taxes last year.
ISLAMABAD:
Finance Minister Dr Abdul Hafeez Shaikh is yet to declare his assets and the amount he paid in taxes last year. In what may be a reflection of how those in power do not practice what they preach, the minister failed to respond when requested to set an example for those who evade taxes by declaring his assets and the amount he has paid in taxes.
“The powerful elite are not in the habit of paying taxes and ultimately resist reforms. In order to give hope to the flood-affected people, we need to pay more taxes as the government does not want to take more loans or cut spending on development,” replied the finance minister, choosing not to answer the question during a brief talk here on Thursday.
On Wednesday, Shaikh had said on the floor of the Senate that the elite of the country were hampering broadening of the tax base and resisting the flood surcharge that the government wanted to levy on all income groups in order to take on the massive reconstruction work.
According to conservative World Bank estimates, tax evasion costs the kitty Rs796 billion annually, a figure higher than the total development budget of the federal and provincial governments combined.
The finance minister asked the powerful groups to reconsider their demand as they were burdening other groups in society. He said that despite opposition from powerful lobbies, the government had levied the capital gains tax on stock market transactions and would now implement the reformed general sales tax regime from October 1.
“Before we seek support from the rest of the world, our own privileged class should come forward to mobilise resources,” he said. He reiterated that those with political influence distorted the sales tax system by getting exemptions through their clout but the government would not surrender this time.
He termed the mini-budget an obsolete phenomenon and instead referred to economic management as an ongoing process. He said the government would revise the budget after adjusting for the impact of floods on the fiscal framework and the economy in general.
“The finance ministry will present the revised budget in the cabinet and it will also be discussed by the standing committees of finance and revenue of the Senate and National Assembly,” he added. Furthermore, the government would also issue statutory regulatory orders where necessary to withdraw tax exemptions.
The government is likely to pull back exemptions on the domestic sale of surgical goods, garments, textiles, leather, fertilisers and tractors. Nonetheless, the business community is resisting the expected decision.
The minister also did not respond to a question regarding cuts in the defence budget. Documents released by the International Monetary Fund show that Pakistan may spend Rs552 billion on defence – Rs110 billion more than the amount announced in June.
Published in The Express Tribune, September 24th, 2010.
Finance Minister Dr Abdul Hafeez Shaikh is yet to declare his assets and the amount he paid in taxes last year. In what may be a reflection of how those in power do not practice what they preach, the minister failed to respond when requested to set an example for those who evade taxes by declaring his assets and the amount he has paid in taxes.
“The powerful elite are not in the habit of paying taxes and ultimately resist reforms. In order to give hope to the flood-affected people, we need to pay more taxes as the government does not want to take more loans or cut spending on development,” replied the finance minister, choosing not to answer the question during a brief talk here on Thursday.
On Wednesday, Shaikh had said on the floor of the Senate that the elite of the country were hampering broadening of the tax base and resisting the flood surcharge that the government wanted to levy on all income groups in order to take on the massive reconstruction work.
According to conservative World Bank estimates, tax evasion costs the kitty Rs796 billion annually, a figure higher than the total development budget of the federal and provincial governments combined.
The finance minister asked the powerful groups to reconsider their demand as they were burdening other groups in society. He said that despite opposition from powerful lobbies, the government had levied the capital gains tax on stock market transactions and would now implement the reformed general sales tax regime from October 1.
“Before we seek support from the rest of the world, our own privileged class should come forward to mobilise resources,” he said. He reiterated that those with political influence distorted the sales tax system by getting exemptions through their clout but the government would not surrender this time.
He termed the mini-budget an obsolete phenomenon and instead referred to economic management as an ongoing process. He said the government would revise the budget after adjusting for the impact of floods on the fiscal framework and the economy in general.
“The finance ministry will present the revised budget in the cabinet and it will also be discussed by the standing committees of finance and revenue of the Senate and National Assembly,” he added. Furthermore, the government would also issue statutory regulatory orders where necessary to withdraw tax exemptions.
The government is likely to pull back exemptions on the domestic sale of surgical goods, garments, textiles, leather, fertilisers and tractors. Nonetheless, the business community is resisting the expected decision.
The minister also did not respond to a question regarding cuts in the defence budget. Documents released by the International Monetary Fund show that Pakistan may spend Rs552 billion on defence – Rs110 billion more than the amount announced in June.
Published in The Express Tribune, September 24th, 2010.