OVERTAXATION FOR NOTHING
An erroneous impression in many power circles and even media is that people do not pay taxes in Pakistan and that for national development we should pay taxes to the tune of whatever percentage a government specifies which should be similar to that of western governments. i.e 20-40% range.
Nothing could be more wrong than this impression. Every soap, every toothpaste , every pepsi , every car and education is taxed. Even interest on savings is taxed , every sizable import even personal is taxed. Just sit in a general store and read inscriptions of taxes.
My view is that if all Pakistanis pay 30% taxation like some Western governments receive , it is not that every unemployed will start to receive allowances or that health care will become free, more likely is that all national money will evaporate abroad via politicians and civil servants in three years time and wide spread closure of industries and starvation will start in this country due to lack of business. The private sector uses single rupee atleast five times in a year , public sector cannot outperform this.
Pakistan needs a smaller govermment and lesser horde of civil servants if it is to prosper .Those politicians who wish to tax more should be rejected outright.
There is also a misguided clamour that rich should be taxed more , this too is self damaging as it is the rich which invests and creates employment. others do not have surplus capital to contribute to economy.
Pakistan's growth rate which is now hardly even 3% was above 10% in Ayub era thanks to respect for private enterprise and strong one unit and presidential system with one overall incharge. All democratic periods of Pakistan were anarchic, slow growth periods. Zia period showed 4-6% Growth rate, Bhutto's period started with average growth and ended in 2% growth rate with negative rate for industrial production.
It is capitalism and capital based economy which can generate funds for non earning populations like under 20 years or house bound females or above 60 years older persons . Without this model you simply cannot have sustaining system for non productive individuals.
The state of Pakistan is keen to show you TV documentaries of roads and bridges being made out of taxes but is not prepare to enter into specific person to government bilateral guaranteed contract or understanding with tax payers that if they pay full tax they will have state benefits for the rest of life. I doubt any state representative will even pay for funeral of a tax payer. Heard anyone being so honoured !.
Ever year every house owner will receive a letter from income office directing to bring lease contract as if house has been leased.
Bhutto like Nehru did not want any person to fund opposition as dynasties were to be built . So they in the name of poor people did not allow growth of private sector or for society to have capital and Bhutto nationalized industries and banks. Mubashar Hassan his finance minister can easily be called the first real Brake on well growing economy of Pakistan. These days this man gives interviews as if he is was an expert. We survived despite him and his boss.
What does state need the funds for ? Our well being , No , they want to fund themselves .
Islamabad Traffic police is good example of mini tax collectors . See them carrying Challan books , you will not see them carry traffic rule book as is required in every car and cop . They will hide in one corner awaiting for you to do something wrong rather than come in front and guide traffic . They will spot a car driver not wearing belt but will not bother that 50% motorcyclists have no rear view mirrors and in danger to die. A ITP villager origin cop will feel great in harassing and fining a female educated lady. He will seize identity card of fined person illegally as keeping ID card is mandated by law. Governmental taxes end up in this way funding such collectors.
Nawaz sharif in previous administration used to tax houses in what was called wealth tax as if a House is hen which even if not rented will yield eggs . Obviously damaging the standard of living of people. Musharaf got the nation rid of those taxes. Last time too it was Ishaq Dar who played an important advisory role , these days too he is busy making IMF happy.
The current 1973 constitution of Pakistan does not give perpetual Islamic right of property and that is the reason that even though state got land at a rate of 70 ruppees per canal in 1960s in Islamabad and though sells these at even 200000/ per yard now and even as early as 1967 for 7000/canal and yet after receiving such amounts gives land to you on lease for at best 99 years , as it does not believe that you own it . Like emperors of the old times it believes that all property belongs to the king (state) . Any DC can order that your property is required for such and such community purpose , and now compare this with prophet of Islam who thought that even the land owned by real owners of spot where Masjid Nabvi is need to be located and paid.
Yes , only respect for investor , for property and for capitalism can result in sustained growth and those clamouring for increasing of taxes be sent packing home.
T
An erroneous impression in many power circles and even media is that people do not pay taxes in Pakistan and that for national development we should pay taxes to the tune of whatever percentage a government specifies which should be similar to that of western governments. i.e 20-40% range.
Nothing could be more wrong than this impression. Every soap, every toothpaste , every pepsi , every car and education is taxed. Even interest on savings is taxed , every sizable import even personal is taxed. Just sit in a general store and read inscriptions of taxes.
My view is that if all Pakistanis pay 30% taxation like some Western governments receive , it is not that every unemployed will start to receive allowances or that health care will become free, more likely is that all national money will evaporate abroad via politicians and civil servants in three years time and wide spread closure of industries and starvation will start in this country due to lack of business. The private sector uses single rupee atleast five times in a year , public sector cannot outperform this.
Pakistan needs a smaller govermment and lesser horde of civil servants if it is to prosper .Those politicians who wish to tax more should be rejected outright.
There is also a misguided clamour that rich should be taxed more , this too is self damaging as it is the rich which invests and creates employment. others do not have surplus capital to contribute to economy.
Pakistan's growth rate which is now hardly even 3% was above 10% in Ayub era thanks to respect for private enterprise and strong one unit and presidential system with one overall incharge. All democratic periods of Pakistan were anarchic, slow growth periods. Zia period showed 4-6% Growth rate, Bhutto's period started with average growth and ended in 2% growth rate with negative rate for industrial production.
It is capitalism and capital based economy which can generate funds for non earning populations like under 20 years or house bound females or above 60 years older persons . Without this model you simply cannot have sustaining system for non productive individuals.
The state of Pakistan is keen to show you TV documentaries of roads and bridges being made out of taxes but is not prepare to enter into specific person to government bilateral guaranteed contract or understanding with tax payers that if they pay full tax they will have state benefits for the rest of life. I doubt any state representative will even pay for funeral of a tax payer. Heard anyone being so honoured !.
Ever year every house owner will receive a letter from income office directing to bring lease contract as if house has been leased.
Bhutto like Nehru did not want any person to fund opposition as dynasties were to be built . So they in the name of poor people did not allow growth of private sector or for society to have capital and Bhutto nationalized industries and banks. Mubashar Hassan his finance minister can easily be called the first real Brake on well growing economy of Pakistan. These days this man gives interviews as if he is was an expert. We survived despite him and his boss.
What does state need the funds for ? Our well being , No , they want to fund themselves .
Islamabad Traffic police is good example of mini tax collectors . See them carrying Challan books , you will not see them carry traffic rule book as is required in every car and cop . They will hide in one corner awaiting for you to do something wrong rather than come in front and guide traffic . They will spot a car driver not wearing belt but will not bother that 50% motorcyclists have no rear view mirrors and in danger to die. A ITP villager origin cop will feel great in harassing and fining a female educated lady. He will seize identity card of fined person illegally as keeping ID card is mandated by law. Governmental taxes end up in this way funding such collectors.
Nawaz sharif in previous administration used to tax houses in what was called wealth tax as if a House is hen which even if not rented will yield eggs . Obviously damaging the standard of living of people. Musharaf got the nation rid of those taxes. Last time too it was Ishaq Dar who played an important advisory role , these days too he is busy making IMF happy.
The current 1973 constitution of Pakistan does not give perpetual Islamic right of property and that is the reason that even though state got land at a rate of 70 ruppees per canal in 1960s in Islamabad and though sells these at even 200000/ per yard now and even as early as 1967 for 7000/canal and yet after receiving such amounts gives land to you on lease for at best 99 years , as it does not believe that you own it . Like emperors of the old times it believes that all property belongs to the king (state) . Any DC can order that your property is required for such and such community purpose , and now compare this with prophet of Islam who thought that even the land owned by real owners of spot where Masjid Nabvi is need to be located and paid.
Yes , only respect for investor , for property and for capitalism can result in sustained growth and those clamouring for increasing of taxes be sent packing home.
T
