Shaikh admits minor misuse of Watan cards
Govt admits imperfections in Watan Card distribution mechanism as criticism mounts over reports of misuse.
ISLAMABAD:
The government has admitted that there were some imperfections in the Watan Card distribution mechanism as criticism mounted over reports of their misuse.
Minister for Finance Dr Abdul Hafeez Shaikh said, “the Watan Cards are not completely flawless but their misuse was very minimal.” He was speaking at a seminar organised by The Express Media Group on the issue of ‘Rehabilitation of Flood Victims’.
“As many as 1.2 million Watan Cards have been handed over to flood victims. Through these cards the government has distributed Rs23 billion,” he added.
The government has also announced a grant of Rs100,000 per family for 1.6 million affected households that will cost it Rs160 billion. Recent floods affected over 20 million people and caused damage worth over $10 billion, according to a joint damage and need assessment report of the World Bank and the Asian Development Bank. For rehabilitation purposes, the government has been distributing Rs20,000 per person through Watan Cards.
“A shameless person would dare usurp the money meant for flood victims,” said Federal Minister for Food and Agriculture Nazar Mohammad Gondal.
Senator Professor Khurshid Ahmed of the Jamaat-i-Islami said that in Sindh 100,000 fake Watan Cards have been distributed. “Without vision and planning, the reconstruction phase cannot be completed,” he added.
A member of the National Assembly, Jehangir Tarin, said that corruption and misuse of Watan Cards was affecting rehabilitation of flood victims. The government should enhance the productive capacity of these victims so that they can regain what they lost in the floods, said Tarin.
Shaikh once again criticised the opponents of the flood surcharge and the general sales tax bill who he claimed were looking for “cheap publicity”. “Those talking about self-reliance should show some responsibility in times of crisis,” he said.
He added that the flood surcharge would only result in Rs15 per month in additional burden for a person having a monthly income of Rs25,000. An official of the Federal Board of Revenue said that an individual having an annual income of Rs500,000 will pay an additional Rs1,870 in six months.
The government has proposed a flood surcharge of 10 per cent of payable tax for six months. Shaikh said that, subject to approval by parliament, the surcharge will help collect Rs30 billion in the remaining six months of the current financial year. “There is a long way to go to generate Rs160 billion for flood victims.”
The government is also eying revenue from withholding tax, as the surcharge will also be applicable on bank transactions and capital gains made in the stock exchange.
Shaikh also brushed aside criticism that there was a lack of coordination between federal and provincial governments. He said that these decisions were taken at the forums of the Council of Common Interest and National Disaster Management Council.
“The catastrophe caused by the floods was the worst ever in the history of the world and caused destruction on an area greater than the size of Italy,” said Shaikh. He said no country in the world could manage such a disaster alone and that the government was proud of the way it had handled it.
Published in The Express Tribune, November 30th, 2010.
The government has admitted that there were some imperfections in the Watan Card distribution mechanism as criticism mounted over reports of their misuse.
Minister for Finance Dr Abdul Hafeez Shaikh said, “the Watan Cards are not completely flawless but their misuse was very minimal.” He was speaking at a seminar organised by The Express Media Group on the issue of ‘Rehabilitation of Flood Victims’.
“As many as 1.2 million Watan Cards have been handed over to flood victims. Through these cards the government has distributed Rs23 billion,” he added.
The government has also announced a grant of Rs100,000 per family for 1.6 million affected households that will cost it Rs160 billion. Recent floods affected over 20 million people and caused damage worth over $10 billion, according to a joint damage and need assessment report of the World Bank and the Asian Development Bank. For rehabilitation purposes, the government has been distributing Rs20,000 per person through Watan Cards.
“A shameless person would dare usurp the money meant for flood victims,” said Federal Minister for Food and Agriculture Nazar Mohammad Gondal.
Senator Professor Khurshid Ahmed of the Jamaat-i-Islami said that in Sindh 100,000 fake Watan Cards have been distributed. “Without vision and planning, the reconstruction phase cannot be completed,” he added.
A member of the National Assembly, Jehangir Tarin, said that corruption and misuse of Watan Cards was affecting rehabilitation of flood victims. The government should enhance the productive capacity of these victims so that they can regain what they lost in the floods, said Tarin.
Shaikh once again criticised the opponents of the flood surcharge and the general sales tax bill who he claimed were looking for “cheap publicity”. “Those talking about self-reliance should show some responsibility in times of crisis,” he said.
He added that the flood surcharge would only result in Rs15 per month in additional burden for a person having a monthly income of Rs25,000. An official of the Federal Board of Revenue said that an individual having an annual income of Rs500,000 will pay an additional Rs1,870 in six months.
The government has proposed a flood surcharge of 10 per cent of payable tax for six months. Shaikh said that, subject to approval by parliament, the surcharge will help collect Rs30 billion in the remaining six months of the current financial year. “There is a long way to go to generate Rs160 billion for flood victims.”
The government is also eying revenue from withholding tax, as the surcharge will also be applicable on bank transactions and capital gains made in the stock exchange.
Shaikh also brushed aside criticism that there was a lack of coordination between federal and provincial governments. He said that these decisions were taken at the forums of the Council of Common Interest and National Disaster Management Council.
“The catastrophe caused by the floods was the worst ever in the history of the world and caused destruction on an area greater than the size of Italy,” said Shaikh. He said no country in the world could manage such a disaster alone and that the government was proud of the way it had handled it.
Published in The Express Tribune, November 30th, 2010.