PPP allies oppose new taxation law

ANP warns of withdrawing support if government ignores its recommendations.

ISLAMABAD: The allied parties of the Pakistan Peoples Party-led government who were earlier expressing reservations on the Reformed General Sales Tax regime on Wednesday came up with strong opposition against the new taxation law that the government wants to pass through the parliament.

Muttahida Qaumi Movement (MQM), Jamiat Ulema-e-Islam  -Fazl (JUI-F), Awami National Party (ANP), the three main coalition partners during the ongoing debate in the Senate voiced their strong opposition, leaving PPP alone on the issue.

The second day of debate on the reformed GST bill, 2010 in the Senate was different from the previous that entailed criticism mainly from the opposition. This time the allies of the government including JUI-F and MQM also announced that they would oppose the move, whereas ANP went a step ahead by refreshing its warning of withdrawing support if the government ignored its recommendations.

The reported corruption of over Rs500 billion in the FBR, its credibility to collect the tax money in future and government’s failure to plug the loopholes remained the central thesis of discussion during the debate.

Maulana Muhammad Khan Sheerani from JUI-F announced that his party would not support the government over the proposed move. Expressing doubts over the government’s sincerity to provide relief to the people, he said that if they wanted to do something, they should curb corruption.

He termed the reforms in GST merely a step by the government to toe the line of foreign donors against national interests. The proposed move of the government would only add to the burden of the poor, pushing the country towards chaos and anarchy.

Dispelling the impression that ANP had accepted the bill, Haji Adeel of ANP refreshed his party’s stance and said the government had not yet considered their recommendations.

“We will not vote for the bill if our recommendations are not included,” he said.

ANP had earlier proposed an exemption of tax on all kinds of edibles being produced in the country, along with health and education sectors.

Finance Minister Hafeez Sheikh had told the house that there would be no tax on fruits, vegetables, pulses, meat, poultry and life saving drugs. However, according to the bill, tax would be levied on packaged edible items.

Mir Hasil Khan Bizenjo of the National Party (NP) supported Mian Raza Rabbani’s observation that resolutions from provincial assemblies were mandatory prior to discussion on the matter. He said that the government had resorted to deals with political parties by offering posts for getting a vote for the bill. It is quite paradoxical that PPP which raises slogans of Roti, Kapra, Makan was pleading for this anti-people bill instead of providing job opportunities for the people, he added.

Raja Zafaul Haq of PML-N termed the bill against the country’s sovereignty saying it was being done on the directives of the International Monetary Fund (IMF). While highlighting the need of resolutions from provincial assemblies, he said that the finance minister and interior minister had flown to Karachi to convince the ally which he added could have been done earlier.

He did not miss the opportunity to hint at the level of corruption in the FBR and said that the collecting authority for taxes was not ready for the future role.

The government would not be able to collect tax money from the rich and powerful lobby and the common man would be the only victim of this new tax, he added.

Dr Abul Khaliq Pirzada of MQM severally criticised the government over the bill and urged the government to publically hang corrupt officials to eliminate corruption.

Muhammad Ali Durrani of PML-Q questioned how the government would be able to collect Rs25 billion if its claim of reducing the GST from 17-25 per cent to 15 per cent was accepted.

He said that the RGST was in fact VAT and the government was merely trying to fool the senators which he added was a blatant insult.

Published in The Express Tribune, November 25^th, 2010.