Ultimate tax Haven (Tax reforms)

Most recently there is a huge hue and cry over 600 Pakistanis from different sectors having offshore accounts to manage their wealth. Although not all of them can be described as illegal provided sources of income are justified and the taxes are paid. But nobody is paying attention to huge non-payment of tax returns in our own country marred by sluggish tax collection system. Over 4 to 5 million people evade taxes annually. 1.1 million Pakistanis pay taxes out of which 600,000 pay some amount of it through voluntary tax regime. it accounts to 0.24pc or 1 out of 375 people. Compared to our neighbor India whose collection is 2.7pc. Indirect taxes such as tax on telecom, utility,petroleum and consumables are not a substitute for direct tax filing. 1.9pc of total population are registered as taxpayers which accounts to 60 percent potential tax base. But practically only 0.45 percent file taxes which accounts for 15 percent of total population base. 0.24pc filed tax returns as part of tax filing and assessment regime which is 534000 citizens or 1 in 375 persons. Only 36838 people give more than 50000 in income tax annually. Corporate sector is giving 77 pc taxes. personal income tax is 23 percent. Out of .5 million registered doctors only 14000 gives income tax. similarly .5 million registered lawyers and only 5000 practicing lawyers file tax returns. Most of government revenues originates from taxation on petroleum and remaining is pumped from 1 pc of large corporate sector. Experts believe this system to be highly inequitable and unsustainable in long run. Small net of Corporate sector is bearing heavy burden and new investments are stalled in the economy. This situation is affecting job creation, which is giving rise to informal economy which will hurt social mobility of labor force in future. Due to such poor performance of tax collection, public is suffering from quality service deliver as government is suffering from precarious condition due to funds drought and priority based spending on well off areas. Government has also lost opportunity to impose equitable tax on huge revenue garnering real estate and equity market. While poor has been badly affected by inflation tax which is due to government's recovery of budgetary shortfalls. Pakistan needs due attention on its tax reforms and shorten the rich poor gap by implementing such reforms and also decrease tax authorities influence to succeed such steps. Source: http://www.dawn.com/news/1258002/ultimate-tax-haven

After the F-16 saga

The sale of F-16's to Pakistan has been tied with conditions. The government is taking this development as a habit of past from Washington which is recurring again after US interests are fizzling out of the region in the backdrop of most of the troops withdrawing from Afghanistan. It has been observed that Pakistan-USA relationship has seen persona based cooperation. Musharraf and Bush administration is a glaring example. They cooperated each other because both needed each other's hand. Bush wanted an ally for its adventure in Afghanistan against Taliban. Musharraf government was low on credibility so it needed world recognition. Although US establishment believes it has helped Pak government in crucial financial stages to benefit its ally in the past. But common masses in Pakistan views this aid based cooperation with regime which were low on credibility rather benefiting common man. Pakistan has always fallen behind achieving revenue and tax targets. It directly affects pak's ablity to purchase advanced military hardware. This economic vulnerability is exposed by Washington to its advantage and blackmailing pak's feeble government to bow to its feet by raising Shakil afridi release issue. Pakistan also seems to be in a precarious situation because it is hard to think Pak government will alter plans to buy a subsidized F16's in favor of other expensive aircrafts because its exchequer is not in that sound shape. On the other hand Russia is showing interest in selling Su-35 planes to Pakistan after deal with Chinese. US had imposed sanctions after fall of soviet union on Pakistan in 1990 and held delivery of F16's after Pressler amendment, which were lifted after a decade. Golden question is will Pakistan be in a position to fulfill its requirements from its own after successful Jf-17 cooperation with Chinese. We have to wait and watch! Source: http://www.dawn.com/news/1257997/after-the-f-16-saga

Military court sentences

Three death sentence grantees from military court got stay in their sentences from Supreme court of Pakistan. The families of convicts asserted that the lawyers of their choice were denied. The military courts didn't allowed them to examine state evidences against accused. Military courts can not maintain standards of fair trial. seems like supreme court is standing in way of total compromise of constitution by military courts. But paradox is visible as supreme court itself stamped approval previously on pretext of 21st amendment. So those seeking remedy from SC can not tie higher hopes. Furthermore Peshawar high court has turned down many appeals to commute death sentences to lesser punishments, as SC has not outlined grounds for successful appeal. A sunset clause infers that in January parliament's reaffirmation is needed for military courts to proceed further. So its a possibility that military courts may wind up soon in case of parliament's disapproval. The ironic question for those who pushed for military courts is that in 2 years post APS attack, the price of hampering and destroying constitution worth convicting 76 people in 18 months? Alternatively with focused approach and integration of effort from different institutions, a reformed criminal justice system could have been achieved in same time period. After 2 years military court tenure due to expire, we are left with sluggish criminal justice system and host of legal issues originating from an ill-suited idea with foreseen outcomes. Source: http://www.dawn.com/news/1257780/military-court-sentences

Believing in Khan (Sadiq Khan Newly elect London Mayor)

"My name is khan and i am the mayor of London."

These were the words of newly elect mayor of London. It holds a symbolic importance. Sadiq khan showed surprise that someone from lower middle class South-Asian background could actually become mayor of the historic and one of the most important and influential capitals of the world. The poll results also goes on to show that people have not bought fear mongering arguments from zac goldsmith camp. Tolerance has been adopted. This election was not based on discussion of actual issues facing Londoners, but politics of personalities. Khan a son of a driver and zac belonging to a well-known wealthy and glamorous family of London. Some Muslims were angered by the remarks of Khan on wearing of veils in Muslims society. But most of them were proud as one of them have actually reached the higher echelon of power to initiate their well being. This election saw faith being highlighted on many occasions. As khan previously shared stage with extremist Muslim, zac asked khan tough questions about which kind of Muslim he really was? Some assert that this cross questioning will be haunting khan in office too and he wont be able to safeguard rights of Muslims. As khan is a Muslim it is also feared by some that anti Muslim policies will be pursued on the shoulders of khan and none will be in position to question him due to his Muslim background. Khan has to prove his loyalty to crown time and again. Another interesting development took place as well, George Galloway has always garnered strong support of Muslim community due to his robust criticism of western policies against Muslims in middle east. But this time Galloway slipped to just 1 percent vote because a Muslim was running for office. Now Galloway plans to run for election from khan's vacant seat in south London. There is a paradox among liberals, they openly criticize religion when it come to discourse in general but interestingly they accommodate people of other faith. That animosity is no longer to be seen. The reason may be the sensitivity towards their former colonial subjects and their willingness not to hurt their sentiments anymore. But one thing is for sure, a regular church goer is surely laying off some liberal voters unless he is sadiq khan, a Muslim! Source: http://www.dawn.com/news/1257781/believing-in-khan

Ban if you can..

Recent banning of the Movie 'Maalik' has sent shock waves across the country. Series of blame game has gripped the country and a serious discourse is taking place. Some argue in favor of banning the movie while many are totally against it. Critics argue that ban is due to the portrayal of real face of politicians which has disturbed politicians. This is against freedom of expression. The politicians are suspicious that there could be an ISPR hand behind such movies to malign politicians specifically. But if we take a look at the events, we can analyse the scenario by classifying society into 2 classes. Underclass is a huge proportion of the population effectively ignored in the ownership of the state. If they come into trouble, no one is there to save them. They have to pay or face the the trouble. The facilities like health, water, education and sanitation largely depends on mood of the state official not the birth right of underclass citizens. For underclass merit and end to corruption wont make them jump up the ladder of social and economic prosperity. Their only ray of hope is the connection to politician which enables state patronage. Another class is over class. They have got to a position of getting English based education and financially sound through their fathers and forefathers. This wealth either acquired through colonial incentive or civil service of their recent ancestors. In emergency they always have some to cover up a problem. This over-class is epitome of skills, knowledge and wealth. This class wants end to corruption and provision of facilities like a developed state. The significance of this class is that they shape opinions and image across the globe. The politicians need to fill the gap and turn to huge population which is their fan base. Then take over class on board for necessary reforms. Banning malik will not dispel bad perception of politicians but allowing it will improve the impression. Source: http://www.dawn.com/news/1257782/ban-if-you-can

Encompassing CPEC

Pakistan and china has inked a landmark deal to build an economic corridor and china has pledged 46 billion dollars in different projects. This route will provide china with an alternate short passage to transport its goods to middle-east and the world in shortest time. Pakistan has announced to build a full army division to safeguard Chinese personnel who are working on the project. China also has 2 alternate routes i.e trans-Siberian rail network and Eurasian land bridge. But CPEC is the shortest route of all these. It will help china industrialize its western provinces as well as quash security concerns i.e Sinkiang province with economic prosperity. GB is a disputed region. Its geographical position is to the north and its constitutional status is contradictory. Pakistan has planned the only economic zone on Karakorum highway which in effect ignores most of GB region from benefits of CPEC. It also seems that Pakistan government is more keen to develop eastern alignment as oppose to western on priority basis albeit protests by two smaller provinces. Astore district and most of baltistan region is ignored in proposed project. It is suggested that road links and projects planned in the entire region. Another study by informed residents proposed alternate passage. It goes from thalachi at KKH to astore district leading up to rattu and conects to muzaffarabad leading to islamabad. Another bypass is from jaglot to skardu, where a non metaled road leads it to rattu. This arrangement will in effect save project from disruption of Landslides and harsh weather. People of the areas will be contented, which will guarantee the success of CPEC unlike the hastily planned projects only in 2 province i.e Punjab and sindh. It is imperative to look into grievances of the other concerned parties as well. Source: http://www.dawn.com/news/1257784/encompassing-cpec

Starting blog for learning purposes: Source Dawn/The News editorials