Tax evaders
FOR all the fuss they are capable of making, our business elite can turn stingy with their words when it comes to the question of taxes. As an example consider a report in this paper that although 493,000 electricity connections were granted to industrial establishments in Karachi, only 115,000 commercial, business and industrial taxpayers were registered with the tax authorities. Unfortunately, that is not all. Out of these 115,000 only 80,000 were ‘active cases’, meaning those who actually contributed to tax revenue. Of course if similar data were to be retrieved from power companies up-country, they would show similar trends, perhaps even more pronounced.
Consider, for instance, what happened when a World Bank report plotted tax-to-GDP ratios for 24 different sectors across the economy. They found oil and gas sitting at the top and textiles at the bottom. In fact, for textiles the ratio was below the sector’s share in total GDP and below even those of retail and wholesale trade, agriculture, public administration, and defence. All of these are notorious for their evasion of taxes, and below them all merrily sits the largest manufacturing sector of our economy. Terms like ‘fat cat’ readily come to mind as we look at these numbers. In the fiscal year ended June 2011, the spinning sector raked in record profits on the back of high cotton prices, but none of the money showed up in corporate income taxes from the sector. Examples are too numerous to cite, but our business elite need to show some remorse, if only for the fact that they drive imported luxury cars to the very events where they loudly bemoan the difficulties of doing business in Pakistan and demand more support from the government. It would do them good to notice the ordinary masses riding in rickety vehicles and to tell themselves that it is revenue collected from these people that pays for the benefits and protections they seek. For all the feasts they’ve enjoyed at public expense, can we at least ask for a little shame in return?
Shame! Who feel the shame in our country at every level and stages, Editorial put here some little bit facts about robbery of taxes, but here all the sides playing robbery, robbery and robery. Every-body knows here to give the bribe to the concerned authorities and cover the illegal work easily.
There is only “LAWS AND ITS IMPLEMENTATION” that stop the sides of leakages, in our country common people is near to be 80% have no more basic facilities and the other side Elite gaining the each and every facilities and this is all for the cost of common people.
Government officials also involve the robbery of taxes, so the honest people go where and why?
As a member of one of the sub- committees of a major Chamber of Commerce, I supported a motion to ask the Government to increase the R&D subsidy to industry, as without R&D upgrading to meet competition is difficult. My suggestion was that the Chamber put in place oversight to ensure the funds provided were being used properly and fully for R&D. There was, I report with regret, strong reaction to the concept that these funds should actually be used for R&D from several other prominent members, the suggestion was declined, and it was made clear that such funding is in fact a subsidy the industries represented deserve from the tax paying public. Where such a culture of false entitlement prevails among the educated and well off, it is not education, but an uplift of character that seems to be needed. As most of those attending were fasting, praying, overtly good believers, I suspect religion is not the answer either.
Oh, Shame not only to those who elude taxes but also to those who are responsible to collect tax. From IMF to WB to ADB to Hillary Clinton – you name it – have pointed out finger at our tax collecting system. UQAB, the Finance Minister did mentioned to expand tax-net but has done nothing practically or may be cannot.