Reformed GST: President soft sells new tax to Sharif
In a formal reply to PML-N chief’s letter, Zardari tries to allay opposition’s concerns.
ISLAMABAD:
President Asif Ali Zardari sought the cooperation of opposition leader Nawaz Sharif for the reformed General Sales Tax bill 2010, reminding him in a letter that his party’s nominee, the former finance minister Ishaq Dar, along with senators of all major political parties, had unanimously recommended the GST bill with 15 amendments.
“The Senate adopted those recommendations along with the bill and referred it to the National Assembly. We also hope for your support in the National Assembly for the passage of this important reform measure,” said the president in the letter that was drafted as a detailed reply to Pakistan Muslim League – Nawaz (PML-N) leader’s letter of November 10, addressed to the president.
The reply was delivered to Sharif at his residence at Raiwind, Lahore. A copy of the letter was also sent to the prime minister.
In a reconciliatory tone, the president invited the PML-N leader to nominate senior party representatives to “jointly take difficult decisions required to take the country forward.”
Taking note of Sharif’s concern regarding the Ehtesab Bill, the president assured him that “the chairperson of the standing committee has decided to reconsider the bill and to deliberate upon the outstanding issues arising out of the dissenting note of the PML-N members.”
“I am happy to note that you support the reform of public sector enterprises,” said the president while seeking Sharif’s support for the restructuring of PSEs as part of the government’s economic reforms agenda.”We will be grateful if your party facilitates the government in its restructuring plans for these entities, and extends support to our policy to promote public-private partnership to protect Pakistan’s national interests,” he added.
Defending the policy of not providing indiscriminate subsidies, the president said that “a subsidy can only lead to the fiscal indiscipline that Ishaq Dar referred to as finance minister, and contribute to inflation indirectly by increasing the fiscal deficit.”
The president also shared the concerns expressed by Sharif over increase in petroleum and electricity prices, but insisted it is not the government’s fault: “POL prices in Pakistan are linked directly to international market prices, and are free of government interference.”
Dwelling on the genesis of the current power crisis, the letter pointed to the critical nature of continuity in economic policies. “The seeds of Pakistan’s current energy deficit were sown by the reversal of power policy in the aftermath of the end of Benazir Bhutto’s second term in office in1996,” said the president, adding that “failure of successive governments to attract investment in this sector has created a supply shortage that will take time to clear.”
While the letter did not explicitly refer to the partisan status quo of Pakistani politics, the president made an oblique reference by starting with the following quotation from the German thinker, Goethe: “Divide and rule, the politician cries; unite and lead is watchword of the wise.”
Published in The Express Tribune, December 20th, 2010.
President Asif Ali Zardari sought the cooperation of opposition leader Nawaz Sharif for the reformed General Sales Tax bill 2010, reminding him in a letter that his party’s nominee, the former finance minister Ishaq Dar, along with senators of all major political parties, had unanimously recommended the GST bill with 15 amendments.
“The Senate adopted those recommendations along with the bill and referred it to the National Assembly. We also hope for your support in the National Assembly for the passage of this important reform measure,” said the president in the letter that was drafted as a detailed reply to Pakistan Muslim League – Nawaz (PML-N) leader’s letter of November 10, addressed to the president.
The reply was delivered to Sharif at his residence at Raiwind, Lahore. A copy of the letter was also sent to the prime minister.
In a reconciliatory tone, the president invited the PML-N leader to nominate senior party representatives to “jointly take difficult decisions required to take the country forward.”
Taking note of Sharif’s concern regarding the Ehtesab Bill, the president assured him that “the chairperson of the standing committee has decided to reconsider the bill and to deliberate upon the outstanding issues arising out of the dissenting note of the PML-N members.”
“I am happy to note that you support the reform of public sector enterprises,” said the president while seeking Sharif’s support for the restructuring of PSEs as part of the government’s economic reforms agenda.”We will be grateful if your party facilitates the government in its restructuring plans for these entities, and extends support to our policy to promote public-private partnership to protect Pakistan’s national interests,” he added.
Defending the policy of not providing indiscriminate subsidies, the president said that “a subsidy can only lead to the fiscal indiscipline that Ishaq Dar referred to as finance minister, and contribute to inflation indirectly by increasing the fiscal deficit.”
The president also shared the concerns expressed by Sharif over increase in petroleum and electricity prices, but insisted it is not the government’s fault: “POL prices in Pakistan are linked directly to international market prices, and are free of government interference.”
Dwelling on the genesis of the current power crisis, the letter pointed to the critical nature of continuity in economic policies. “The seeds of Pakistan’s current energy deficit were sown by the reversal of power policy in the aftermath of the end of Benazir Bhutto’s second term in office in1996,” said the president, adding that “failure of successive governments to attract investment in this sector has created a supply shortage that will take time to clear.”
While the letter did not explicitly refer to the partisan status quo of Pakistani politics, the president made an oblique reference by starting with the following quotation from the German thinker, Goethe: “Divide and rule, the politician cries; unite and lead is watchword of the wise.”
Published in The Express Tribune, December 20th, 2010.