Pakistan

New tax bill: 'Protests will have no impact'

Gilani says he is “totally convinced of the necessity to impose the reformed general sales tax (RGST).”

Quatrina Hosain December 10, 2010

ON BOARD PM’S SPECIAL AIRCRAFT: Prime Minister Yousaf Raza Gilani on Thursday said he was “totally convinced of the necessity to impose the reformed general sales tax (RGST).” He commented that “different people are playing to the gallery,” adding that the opposition had a right to protest, but protests would have no impact on his government. Talking to the media during the flight back to Pakistan, Gilani seemed optimistic as he commented “If members support the bill, then it will pass.”

Regarding taxing agricultural income, the prime minister said he believed “whoever earns should pay tax.” But he added the caveat that the decision to impose tax on agricultural income rested with the provincial governments.

Defending the decision to impose the RGST, Gilani said people pay taxes all over the world but the Pakistani people are not used to paying taxes. But when you expect other countries to give you aid, that money comes from their tax-payers, he added.

The prime minister insisted that his party would continue to follow reconciliatory politics but insisted the opposition has to play its role. Talking about his coalition partners, Gilani said: “We have no experience of coalition governments” but predicted that future governments would remain coalitions, suggesting that it would be unusual for any one party to win the majority in a House of 342 members.

Published in The Express Tribune, December 10^th, 2010.

COMMENTS (18)

Noor | 13 years ago | Reply In China you get the death penalty for tax evasion! Each and every one of the 1.3 billion population of china pay taxes, from east to west and north to south, even those living in the most rural areas of china pay income taxes. If they fail to fill out their tax returns or if they falsify their statements then the chinese government/ruling communist party arrest them and are immediately put to death!

A Suhail | 13 years ago | Reply @Fayyaz. So you are saying that we need to tax the MNA's and leave all the traders, industrialists etc etc alone? So these traders from lahore, karachi etc are not rich as compared to politicians?. Everyone should pay their fair share of taxes. The problem is no one wants to pay taxes in Pakistan and everyone wants someone else to pay the taxes. Over 60% of our economy is undocumented, RGST if implemented and enforced will make sure that these undocumented sectors come online so they be taxed accordingly. We have to start from somewhere, right or we can keep on begging the world for money.

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Nizaam | 13 years ago | Reply Pakistan people are indeed equal criminals in not paying their dues with politicians, rich military men, and rich media barons.

Karan | 13 years ago | Reply well no country is perfect..every country has short comings. All i am saying is that if something bad happens anywhere in the world it is said that Pakistan is responsible. Aren't we tired of being called a failed economy? Our corruption has depleted our resoures completely. It is projected that by 2025 China and India will be first and second largest economy in the world..why not us? Why do we fight for petty issues and not focus on improving our globally horrible image? No cricket team wants to tour us. We are being isolated there as well..even World Cup is snatched away from us..Aren't we ashamed of this? Why can't we have our own better IPL? This is sad. Lets join hands to fight before it is too LATE.

G.Khan | 13 years ago | Reply Those who say "FAIL STATE" to you, You label them American and NATO TERRORISTS. TAG them. They need to go and check their own Human rights record in Afghanistan and Iraq. It is a very good thing that India is growing economy and First is CHINA . Don't worry we will come get back on track. No need to feel BAD . Stand firm and TAG them back. This is a Psycho Warfare. They need to do it because on the ground they have lost. They are the one who are terrorists and being defeated in Afghanistan. This will write the whole new history. Just stay put and be united. India also have serious human rights Violations as well. Read the Human rights commission reprot. They are on First fives in the world. So all is not good for everyone..

Fayyaz Haider | 13 years ago | Reply Dear Mr. A Suhail, and like people, Please note that RGST is an indirect tax and its effect is tranfered to the general public. Sales tax is not payable on the earning of the businesman but a common man pays it. Why the government not impose/enhance direct taxes like income tax, wealth tax and capital value tax. We donot have wealth tax and tax on agricultural income in our country, shamefull. A landlord doesnot have to pay tax even he earn billions of rupees and collect wealth of Billions of dollars but a poor man of the country earning Rs.6,000/ per month pays Sales Tax worth Rs.12,240/- (@17%) every year other indirect taxes are in addition. Please note the common man fails to meet the necessities of life. No doubt the MNAs, MPAs are 3000 only. But they own Billions of dollars. Let say if Mr. President only is taxed @ 17% a year for holding wealth of $ 1.5 billion (his declared wealth) Nation can get $ 255,000,000 i-e Rs.22 billion approximately. This is only the case of one politician. This is not fair. By imposing wealth tax people, like our politicians, will stop increasing wealth and will start to invest it and our economy will start progressing.

Karan | 13 years ago | Reply I am not sure where Pakistan is heading? we are going through the worst economic & political times. we are being labeled as a "Failed State" 60 years after independence and look where we are? India on the other hand is 2nd fastest growing economy in the world with many industrialist amongst the richest people in the world.. They are doing a complete image makeover & overhauling their systems. When will we see this happening to us? Every time there is a problem with us; why do we have to beg to the outside world? we had floods - our politicians begged.. in order to eliminate terrorist - we again begged!! aren't we ashamed of begging over & over again?

A Suhail | 13 years ago | Reply We need to increase the tax base in our country. Even if these MNA's, MPA's and Senators do not pay( around 3000 of them in all) taxes that does not mean the rest of the traders, industrialists and landowners can absolve themselves of this civic duty. Traders from Liberty Market and Brandrath Road Lahore make millions and millions and they pay nothing to the government in taxes. Same is true for the ones in Gujranwala an Faisalabad. Every year we have to go US. Saudi Arabia and UAE begging for cash since we have nothing in coffers and them we loudly complain why are these countries interfering in our affairs. Beggars cant be choosers. Tax cheats have another weapon they regularly use. They insist they do not trust the government but they give out money from their own hands to the needy people. Well its great but its not true as Pakistan is among those countries who are not known to share their wealth with the needy. In US where there is huge outcry over government wasting tax dollars. a group of mutli billionaires have come together to pledge half of their wealth to help the needy. Lead By Bill Gates the group has gotten pledges around 500 billion dollars and counting. Now that shows the love and commitment to a country. We Pakistani's have lot to learn from Americans.

FAS | 13 years ago | Reply Mr. PM if the peoples are giving the Tax in other countries so on onther hand they are being given top class of living facilities from top to bottom class of citizen what we getting from the Govt. Just Death,Inflation,Bothering,Curruption,Mader of merit, omitting of Medical facilities, decrecing of Educational facilities,load shading of Powers, No home, no Roti no Kappra there is a long list which are no longer with us now please think for poors they are really dieing now..... Please think for Pakistan.

majid maqsood | 13 years ago | Reply There is nothing wrong with RGST, and PM is rightly convinced to impose it if there is no any consensus. it has been tradition our political system to oppose each other, if RGSP is imposed then there is only option of devaluation which will lead more inflation in the country.its only politics has been done on the name of RGST and those who were agreed on VAT are opposing RGST. these politicians dont think for future and in the best interest of the country but they think for political mileage and personal gain. i also remind here the deal of Muthrama Benazir bhutto for generation of electricity in her second term but it was politicized and it was claim of opposition that its expensive deal and agreement so it should not be done, but later it was realized that agreement was in the best interest of Nation but we were lost and faced many hours of load shedding in a day.

Ali Khan | 13 years ago | Reply Pay RGST to finance around 100 ministers.

Asrar Ahmed | 13 years ago | Reply Hmmm so how much tax did our PM pay in last 4 years and how much tax did Federal Ministers pay in last 4 years.Publish this data and stand up.I wish this data was on wikileaks RGST in it's present form should not be introduced. FBR should be reformed, robust IT system should be developed by open competition in FBR and large agriculture holding and Fruit farms be subjected to Income Tax. do you believe the state of affairs of FBR, that one person who is "gate keeper" of approving Sales Tax Registration went on 10 odd day leave for his son's marriage; and in this period of 10 days no new Sales Tax registration issued or corrections to Sales Tax registration was made. you can verify this from any tax bar association if you want

Hajra Noreen | 13 years ago | Reply "Pakistani people are not used to paying taxes"... He should have written Pakistani Politicians instead of Pakistani! Extremely Pathetic!

Aristo | 13 years ago | Reply The amount of money SAHIBZADAS have made in the last three years through scams, they alone can pay the taxes on our behalf as it would only be a fraction of what they have minted in Gross, Vis a Vis. the HAJJ scam, NICL, PIA, Steel Mills and many more to come to surface.

Atif Khan | 13 years ago | Reply How much tax he himself pays?

khan | 13 years ago | Reply it is very sad that the prime minister does not give any weight to protests.he had no regards for the voice of the oppressed and downtrodden. at least he should have realized the miseries of these people and expressed his dissatisfaction verbally, people would have understand his problems. but he don't even bother to understand the situation in which the people have been struck in. the situation is getting worse with every passing second and the imposition of RGST would literally kill the already hunger to death. the result will be seen soon and remember that the people very soon will come out and drag all these in streets who vote in favor of RGST.

Yasmeen | 13 years ago | Reply So Quatrina got anther free trip :-)

sunnh | 13 years ago | Reply wahooo !!! what an enthusiasm. the given verdict seems to be in the best intrest of the pakistani people but only for the top strata. sir P.M illustrated that the aid we get is also the generated tax from the people. i would suggest sir GIalani that please set up ur government pattren the way the westrens have set then i think that every one will love to pay the tax. if u only believe to collect the tax from a common man who is earning only 6000 R.S a month then i thnk ur playing a havoc and injustice, because the elite class is out of the parameters of the Pakistani tax system. the greater the wealth the greater should be the tax. the lower class people not even know what the tax is but they are continously paying the taxes contraraly the upper class who is more educated and responsible feel shame to pay tax. Sir do u have any procedure to make the elite class pay taxes. please amend the strategy and make the upper class pay the taxes beca8use they have got the big chunksssssssssss.

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