Sindh

Sindh government approves flood tax

The Sindh government has approved the imposition of a one-time flood tax in the province.

Express October 04, 2010

The Sindh government on Monday approved the imposition of a one-time flood tax in the province.

Pakistan People's Party’s (PPP) information secretary Fauzia Wahab said the flood tax will be imposed on only the wealthy.

On the other hand, PPP's coalition partner in the government, the Muttahida Qaumi Movement (MQM) has alleged it wasn't taken into confidence over the flood tax.

MQM leader Babar Ghouri called the tax unfair and said that his party will fight against the imposition of the flood tax.

The advisor to Chief Minister Sindh, Qaiser Bengali, says it will be a remarkable achievement if the provincial government collects 25 billion rupees in the flood tax.

Bengali said the province has suffered losses of at least 447 billion rupees in flood-devastation.

The Sindh government has set a ‘flood tax’ collection target of Rs2 to 2.5 billion in a decision at a meeting held under the chairmanship of the finance minister.

The decision to impose the tax was made on the advice of President Asif Ali Zardari, who had suggested that Rs7 billion should be collected from people across the country.

The following are some opinion pieces from The Express Tribune regarding the imposition of a flood tax:

Flood tax proposal

Overall, the proposal may be sound but its implementation will be controversial. Instead of coming up with ideas on how to raise money through innovative measures, the government should prioritise its efforts at widening the tax base. If this is done in a free and fair manner, the country’s resource crisis will take care of itself in the long run. (Editorial)

Not the easy way out

Ordinarily, we would support the government’s efforts to increase the revenues it collects through taxation. But the flood tax currently being proposed is little more than a case of loading a greater burden on the proverbial camel that is the miniscule tax-paying class of Pakistan. Why not push for improved efficiency of the tax-collecting mechanism, in particular the Federal Board of Revenue? (Editorial)

The price of incompetence

We will pay flood taxes and make sacrifices because we know that our very survival depends on it. We may gripe about it, strike and protest yet we are painfully aware that this something we have to get ourselves out of or the game is over. One just hopes that the silver lining in all this is that the government will discover a similar survival instinct because they certainly cannot afford a lack of vision and sincerity of purpose to drown them. It is time for them to realise that they must lead by example and make a serious effort to cut costs everywhere. (Ayesha Tammy Haq)

Taxing times

The proposal for a ‘flood tax’, to meet what will be the massive costs of flood rehabilitation work continues to hover. It can only add darkness to an already bleak situation. There are some simple facts that need to be acknowledged. People can simply not afford to pay more taxes. We hear almost each month new accounts of desperation and despondency. The fact that it is chiefly only salaried persons who are made to bear the brunt of taxation means that those who already face the tightest budget squeezes will end up paying the price of any new measure. It is not only the poorest of the poor who are suffering. (Editorial)

Why should I pay a flood tax?

It will be people like you and me who are going to pay flood taxwhile our friends riding around in SUVs will have a good laugh. The government planned a one time tax that would be deducted from the taxpayers’ salary via property tax, while the 98.4 per cent of the non tax paying population will get away with more than just not paying tax. I, for one, am not in favor of paying flood tax. (Shaheryar Popalzai)

COMMENTS (7)

Shani Syed | 14 years ago | Reply @ Anonymous absolutely right, we share your sentiments and feel absoulutely angry at this decision we are already paying alot more, the point is even if we pay the tax it wont be utilized for flood relief rather in making the rich politicians richer building private roads to privately owned cities while the foold effected shall be banished to starve... I even used to pay my CDGK bill during Mustafa Kamal because I've seen him at nights getting the roads clean and fixed near my house at Karsaz, I praise hima n pray for him every time I take the roads he had built, I would have continued paying if the administartors frm the govt too would have worked even half as hard I dont pay the CDGK bill now not cause of ethinic or party thingy but because there is no one present even to even lift the dead cat from the street which lied there for five days till the cars made a sticker out of it or it rotted itself on Karsaz and the dumps of garbage round the city just keeps mounting...My KESC bill came Rs. 3000 while no one was home as we were abroad in saudi for vacations so dont even ask how much we pay on utilities when we are here, Everyday when I park my car to work at the airport and I see govt officials SUVs parked in VIP lines and wait for the protocol to be over it makes me squirm too as this lavish lauxury is on my hard earned tax payed money its on the petrol that I am paying for 70 Rs litre and these people dont deserve it as they are selfish corrupt and inept and now they want more... You tell me what do we do? should we all citizens boycott by not paying our property tax or vehicle tax we cant help income tax as its cut at sourceif this flood tax k namm pe looto scheme starts, should we wait for this govt to leave and then resume paying? we seriously need to do something they are crushing us and you and me brother AlhamdulilAllah may be having alot better lives then those who are the ones really in pain who make ends meet those who lost every thing in flood while some ministers or feudals fish farm was being saved some dam was being broken drowning thousand who were supposed to be hit by the flood..imagine how angry do the feel, no one trusts them with the money but agin its good tax payers good citizens like us who are fools. This is unfair totally unfair and people owning Raivand states surrey palaces and french chattues dont pay a penny....

User | 14 years ago | Reply Yes Tax the income class & especially the people in Karachi. The people of Karachi are only liable for the whole of Pakistan. This is democracy. I am so angry that I have no words to express, are we the only people living in Pakistan? Why do we always have to pay taxes where as people like Gillani, Nawaz, Bilawal, Qaim Ali Shah and the rest of the politicians & their kin roam around in imported SUV's escorted by an army of private guards as well as police mobiles, which my money (hard earned) is funding? Why dont these TV anchors & talk show hosts say anything about. All they are concerned is the lawyers & judges or either what Musharraf said about thier daddy Nawaz. If I would have known that I am going to be taxed, I would not have donated thousands of rupees (I am sorry to say something like that, but can’t help). Please do excuse me.

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Hafiz shah Ali | 14 years ago | Reply The editorial comments are very profound and correct. Why not charge tax on agriculture income which contributes to over 60% of GDP. Why not start with taxing fruit farms?. The problem to a great extent is also the tax machinery in FBR. They neither have the capacity nor competence to administer an efficient tax administration. Over 20% of their grade 17 and above staff have degrees in Medicine (MBBS). The whole system needs to be over hauled. Those who earn income,irrespective of source need to pay tax. Flood tax is a very bad idea. Why not pass a law that evrey immoveable property in the country should be declared and say a nominal tax be paid.Those who do not declared the property within the fixed period (say 4 months) their property will be confiscated by the government. That will bring all un-taxed and benami property to surface.

Maqsood Raza | 14 years ago | Reply I hundred percent agree with Ali Raza and also with HS. Why Ministers and particularly the President offer thier will to first pay this tax to set an example.

HS | 14 years ago | Reply When this flood tax thing first came out, it was only for the urban areas of sindh. Now why dont the rich ministers of PPP pay this tax too!! They wont impose it on themselves, but only on people who dont vote for them..... Hope MQM has some plan to get us out of this mess

Shani Syed | 14 years ago | Reply Pay more tax in the name of Flood ???? to do what so the PM can wear new suits and distribute it in fake cmps to fake people, for ministers to buy new bullet proof SUVs the richer to get richer or for the President to buy another chatteu in France???? Just cause the foriegn community dint trust them with the money this is another way of looting the poor awam... I would have definately gven it if I had confidence that it shall be spent on the cause its being collected for, even half of it... For a country whose govt takes bribe from UN to come help the people in distress first park two Pajeros infront of the ministers house then we shall let you distribute aid, you think we the awam are willing to pay you more???? No way people may trust the Pak Forces, Ehdi organizations like Chipa the NGO's, Kashif or Talat of Imran Khan etc they may even trust foriegn NGO but no one can trust the govt with their money for as per the Hadees of Prophet S.A.W I shall give the explanation not exact words : we should confirm and first make sure that the person whom we are giving aid is actually needy and that our money is being spent on the right and deserving its the duty of the Muslim. I regret to say with shame that we cant trust our govt knowing every thing, had they not been corrupt we would have all given double the amount of money but just satisfy us it shall be spent on the needy, can any one assure us????

S. Ali Raza | 14 years ago | Reply How do you impose a new Tax without offering fair and transparent distribution of the same? Who trusts this Government? Change the people and take double!

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