Published in Daily Times on June 15, 2013
Sir: The first budget of the new government has come as a big shock. Those who
thought the prime minister has learned from his past mistakes have been
disillusioned. It is an inflationary budget, and has targeted those only who
are already in the tax net. The salaried class has been particularly affected,
while agriculturists have been left untouched. The finance minister said
nothing about curbing or eliminating electricity and gas theft, or about
rampant smuggling, under-invoicing and underquoting of imported goods done to
avoid higher rates of duty. Eliminating such malpractices can result in
trillions of rupees saving. But the government seems helpless before powerful
people like smugglers, the ones to benefit the most from the increased rate of
sales tax.
In fact, 75 percent of the collected sales tax is used to pay for refunds (most
of which are a result of fraudulent claims). A study recently concluded that
the government can earn more by cancelling refunds and abolishing the sales tax
department. Instead of cosmetic measures like curbing expenditures on the
presidency and the prime minister’s house, the finance minister should
concentrate on effective steps like nabbing those who indulge in smuggling, tax
evasion, electricity/gas theft and other such evil practices. Leaving them
untouched will only prove that this government is no better than its
predecessors.
Karachi
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