Tag Archives: rank

Pakistan’s tax-GDP ratio is at the same level as Ethiopia and Afghanistan – Shahid Kardar

Tax reform agenda for next government

By Shahid Kardar

Pakistan has one of the lowest tax to GDP ratios and, even considering developing countries alone, it is in the bottom ranked nations in terms of the proportion of population registered as taxpayers – less than 5 percent. of household population. There is rampant tax evasion, partly with the collusion of the official machinery. Whereas 3.1 million people have the National tax Number, a mere 1.2 million filed an income tax return in 2010/11. What is even more startling is that of 47,800 companies that have NTNs, less than 16,800 filed an income tax return against 400,000 industrial electricity connections.

As admitted by FBR, there is a tax gap of 79 percent. (the difference between potential revenues under the existing system and that actually collected). Revenues can be raised through broadening of bases, improving the equity of the tax regime, incentivising documentation, checking evasion by embracing a zero-tolerance policy, checking harassment of, or collusion with, taxpayers by simplifying tax returns and making FBR a faceless bureaucracy, with interaction between taxpayers and tax officials limited through greater reliance on automated computerised systems.

The general tax reforms would include taxation of all incomes of same levels equally irrespective of source, with a swift reversal of the travesty of the recent amnesty granted to trading in shares. There is also need for legislation that will render all Benami Transactions illegal and subjecting all cabinet members, who should all be taxpayers, to detailed tax scrutiny throughout period of office, and they should all be taxpayers. The tax returns and Wealth Statements of all parliamentarians and holders of key public offices and their spouses (including Secretaries, Chief Justices, Chief of Army Staff, Governor State Bank, Auditor and Attorney Generals) should be public during period of office and one year thereafter. Finally, following good results of tax mobilisation initiatives, individual and corporate income tax rates and the GST rate could be lowered under a phased programme.

 

The specific reforms under different tax heads would be the following: For Income Tax: Greater dependence needs to be placed on technology and through that on the CNIC for tracking commercial transactions to identify potential tax evasion/evaders, including movements in bank accounts of large deposit holders. The FBR should periodically reconcile the property tax registers of all provincial governments, names of credit card holders and members of private clubs with those allotted National Tax Numbers, for the system to generate notices to non-filers. All presumptive taxes should be replaced by withholding taxes (which presently contribute 60 percent. of income tax revenues). And the rates of all withholding taxes should be increased by at least two percentage points as a revenue enhancing measure, to incentivise documentation and penalise those trying to avoid capture in the tax net. ….

Read more » The News

PAKISTAN: Army is silent on the disappearance of Captain 33 years ago

ASIAN HUMAN RIGHTS COMMISSIONUrgent Appeal Case: AHRC-UAC-250-2011

21 December 2011 – The Asian Human Rights Commission (AHRC) has received information that an army officer of the rank of Captain was sent on a secret mission to Kashmir in 1979 and since then his whereabouts are unknown. The missing officer, who was identified as Mr. Ishtiaq Ali Khan Qaimkhani, told his wife before leaving that if he does not return from the mission within two years then she should contact General Headquarter (GHQ) of the army and the office will provide all his detail. Since 1981 his wife has been trying to get the information from the military and government but has yet to learn as to whether he is dead or alive. She has written many letters to the President, Prime Minister, Chief of Army Staff and Chief Justice of Pakistan but no one has replied to her or conducted an inquiry into the disappearance of the Captain.

Continue reading PAKISTAN: Army is silent on the disappearance of Captain 33 years ago

Islamists break Pakistan’s military ranks – By Amir Mir

ISLAMABAD – The arrest of Brigadier Ali Khan, a senior officer of the Pakistan army, for his alleged ties to Hizbul Tehrir (HuT), a banned Islamic militant group believed to be working in tandem with al-Qaeda under the garb of pan-Islamism, has brought into the open conflicting Islamists and reformists ideologies that have split the military’s rank and file for a decade.

Pakistani armed forces spokesman Major General Athar Abbas confirmed Khan has been arrested due to his links to the HuT and was being interrogated by the Special Investigation Branch of the Military Intelligence. The brigadier, who had been posted at the General Headquarters (GHQ) of the army in the garrison town of Rawalpindi, was taken into custody on May 6, hardly three days after the May 2 killing of al-Qaeda founder Osama bin Laden in a US military raid in Abbottabad. …

Read more:→ ASIA TIMES ONLINE

Anti-American Coup in Pakistan?

By Stanley Kurtz

The Washington Post and New York Times today feature above-the-fold front-page articles about the deteriorating situation in Pakistan. Both pieces are disturbing, the Times account more so because it explicitly raises the prospect of an anti-American “colonels coup” against Pakistan’s army chief, Gen. Ashfaq Parvez Kayani. With all the bad news coming out of this part of the world, and plenty of trouble here at home, it’s easy to ignore stories like this. Yet these two reports are among the most alarming and important we’ve seen in a long string of bad news from Pakistan and the Middle East.

Both articles make plain the extraordinary depth and breadth of anti-American sentiment among the commanders and the rank-and-file of Pakistan’s army. While America’s insistence on keeping the bin Laden raid secret, as well as our ability to pull it off without Pakistani interference, are the immediate causes of the anger, it’s obvious that a deeper anti-American sentiment as well as some level of sympathy for al-Qaeda are also at work.

Even now Pakistan’s army is forcing American operations out of the country. They have blocked the supply of food and water to our drone base, and are actively “strangling the alliance” by making things difficult for Americans in-country.

Unfortunately, it’s now time to at least begin thinking about what the United States should do in case of either an overt anti-American coup within Pakistan’s army, or in case Kayani himself is forced to effectively break relations. Although liberation from Pakistan’s double-game and reversion to honest hostility might come as a welcome relief to some, I see no good scenario here.

Should anti-American elements in Pakistan’s army displace Kayani, they would presumably hold our supply lines to Afghanistan hostage to a cessation of drone attacks. The step beyond that would be to cut off our Afghanistan supply lines altogether. Our minimum response to either of these moves would likely be a suspension of aid (on which Pakistan’s military is now dependent) and moves to provide India with technology that would give them major advantages over Pakistan. Pakistan may run eagerly into the arms of China at that point.

These developments would pose many further dangers and questions. Could we find new supply lines, and at what geo-strategic price? Should we strike terrorist refuges in Pakistan, perhaps clashing with Pakistan’s own forces as we do so? Would Pakistan actively join the Taliban to fight us in Afghanistan? In short, would the outcome of a break between America and Pakistan be war–whether low-level or outright?

There is no good or easy answer here. If there is any single spot it would be hardest for America to walk away from conflict, Pakistan is it. Bin Laden was not alone. Pakistan shelters our greatest terrorist enemies. An inability to strike them there would be intolerable, both in terms of the danger posed for terrorism here in the United States, and for the safety of our troops in Afghanistan.

Yet the fundamental problem remains Pakistan’s nuclear capacity, as well as the sympathy of many of its people with our enemies. Successful clashes with Pakistan’s military may only prompt sympathizers to hand nuclear material to al-Qaeda. The army is virtually the only thing holding Pakistan together. A military defeat and splintering of the army could bring an Islamist coup, or at least the fragmentation of the country, and consequent massive expansion of its lawless regions. These gloomy prospects probably explain why our defense officials keep counseling patience, even as the insults from Pakistan grow.

An important question here is just how Islamist the anti-American elements of Pakistan’s military now are. Is the current trouble primarily a matter of nationalist resentment at America’s killing of bin Laden, or is this a case of outright sympathy for al-Qaeda and the Taliban in much of the army?

The answer is probably a bit of both. The difficulty is that the precise balance may not matter that much. We’ve seen in Egypt that a secular the military is perfectly capable of striking up a cautious alliance with newly empowered Islamist forces. The same thing could happen in Pakistan in the advent of an anti-American military coup. Pakistan may not be ethnically Arab, but it’s continued deterioration may be the unhappy harbinger of the so-called Arab Spring’s outcome, I fear.

At any rate, it’s time to begin at least gaming out worst-case scenarios in Pakistan.

Courtesy:  National Review Online

Via Wichaar