Imposition of VAT: An imprudent decision

The chairman Federal Board of Revenue (FBR), in a briefing to All Pakistan Chambers presidents and leaders of the business community disclosed that “Value Added Tax” is a suggestion, not a law unless approved by the National and Provincial Assemblies.

While allaying the fears of business community FBR chief disclosed that according to World Bank report, Pakistan can still collect Rs700 billion to 800 billion in terms of tax every year therefore he finds it crucial for the health of economy to levy VAT.

The chairman, it appears, has misconstrued the World Bank statement. The report has in fact disclosed loopholes in the tax system which causes enormous leakage of taxes and desires recovery by implementing tax laws effectively. However, instead of recovering concealed/untaxed from wealthy section of society who have accumulated massive riches during the last ten years’ laxity in tax policies, the FBR has found an easiest way i.e. to impose VAT that will be payable by the consumers, mostly poor strata of society and not by those who are making profit.

Moreover VAT is also not the other name of General Sales Tax (GST) as stated by the FBR spokesman in response to a question raised by the representatives of business community. If this is true then why impose a new tax when GST is already in the field?

The Value Added Tax, if implemented, will aggravate the already hyperinflation and make the lives of general public with limited or fixed incomes extremely unbearable. The FBR instead of adding misery to the already retched conditions of people, if strengthens its existing Income Tax law and make those who are earning taxable income to pay what is due to them, there will be no need to impose another tax. If the loopholes are plugged by checking corrupting in the tax machinery and every person liable to tax is brought to book on the one hand and on the other what is due is collected from them, I am sure that more than 800 billion extra taxes (pointed out by the World Bank) will be added to government coffers.

Another thing that one fails to comprehend is why FBR is consistently trying to appease only business community though it is not they who are to bear the burden of VAT? They are only collectors of VAT from the purchaser at the time of making sale. Only snag might be worrying them that they will be registered with the department therefore will not be able to hide their real transactions.

I hope the four provincial Assemblies and National Assembly, before whom VAT law will be presented for approval, will seek expert advice from the tax/financial professionals otherwise then FBR officials and also reach the general public, the main stakeholder for their opinion while taking any decision.

Amanullah Turk,

Dubai, UAE.

Fund for terror victims

Nowadays the entire nation is fighting a battle for life against terrorism. Obviously, the terrorists are fighting on behalf of their masters who have plans to either dismember Pakistan or at least strip it of its nuclear weapons.

The will of the nation and the determination of the security apparatus to defend Pakistan stand in the way of the enemies of Pakistan.

However, one thing seems clear — this fight for survival will be a long-drawn-out battle. Our security forces — armed forces, Frontier Constabulary, Rangers, police forces, etc. — will be offering more and more sacrifices for the motherland.

While provincial governments and their respective departments look after the heirs of our martyrs, it is the need of the hour that the entire nation, including expatriate Pakistanis, came forward on a voluntary basis to financially support the heirs of martyrs who have laid down their lives for providing us with a safe and better future.

I suggest that the government should take the initiative to mobilise public opinion and take the following action:

1) Declare the salary of all persons serving in all security forces/agencies (armed forces, Frontier Constabulary, police service, intelligence agencies, Rangers, etc.) as tax-free. Plus, they should be exempted from property tax.

2) The government should create a fund with initial investment of Rs1,000m (the amount to be released from the US grant of the Kerry-Lugar Bill.)

The rest of the amount should be collected as donations from overseas and local Pakistanis, on a regular basis, till such time that the war with terrorists continues.

This fund should be managed by people having a good reputation from government and non-government sectors.

SYED NAYYAR UDDIN AHMAD,

Lahore.

Application of biotechnology

Pakistan has ample natural resources available in the form of agricultural lands, water and a variety of seasons. There is a great need to take full advantage of these bestowed natural gifts by the touch of latest technology like Biotechnology. The two things that Pakistan needs to apply Biotechnology are the skilled manpower and investment. We already have skilled manpower in ample quantity fortunately and the latter can be achieved by attracting foreign investors and multinationals through effective governmental policies and incentives.

Active involvement of the government is the key to success in establishment of a strong Biotechnology platform in Pakistan. Industrialising the nation in true sense can help us lessening our dependence on rest of the world and overcoming our weak economic condition and the general rate of un-employment. If we can be a nuclear power despite being a Third World nation and limited resources, why can't we be able to establish latest technology platforms by using what we already have in the form of manpower and investments or funds that we get?

There is need to spend a part of national budget on the advancement of Biotechnology through skill building of local people, establishment of research institutes and setting a research trend in this area of science because advancement in research is the key to success in the present world. This will surely help in "brain gain" instead of "brain drain". Strong determination, positive intentions and strong leadership are the key words in establishment of strong roots of Biotechnology in Pakistan however.

Sidra Saeed,

QAU, Islamabad

They’ve done it again

As India has not so far reconciled with the creation of Pakistan, which is little more than six decades old now with the ever-showering blessings of Almighty Allah, our so-called old ally USA has not been able to realise and appreciate the historical fact that an Islamic country had turned into a nuclear power in 1998.

This is duly reflected in the reports which appear every now and then in The Washington Post and other US, British and Western countries media. This is with reference to latest report in The Washington Post in its issue of March 14, which has more or less been reproduced by the national press.

The very title of the somewhat detailed report "Pakistani scientist Khan describes Iranian efforts to buy nuclear bombs" from its Islamabad based reporter Joby Warrick reflects their intentions.

It is a known fact that Washington for some years is after Iran for ensuring that Teheran does not develop and possess nuclear technology, keeps showing concern about safety of Pakistan's nuclear arsenal mainly to lay hands on Islamabad's nuclear arsenal only after which its illegitimate babe, Israel, would be considered safe. The US senior officials every now and then keep saying that Pakistan's nuclear assets are safe but vulnerable despite repeated assurances by the highly placed official quarters of Pakistan that the country's nuclear assets are well protected and safeguarded and there is not even remotest possibility, with the blessings of Almighty Allah, of these being falling into some wrong hands.

Needless to mention here that as India and Pakistan cannot be friends on the basis of equality, respect, dignity and honour, similarly USA cannot be a sincere ally and friend of Pakistan. This has been established more than once and even now when Pakistan is paying very heavy price for its forced participation in the US-led international coalition war on terror for the last more than couple of years in an unending manner.

Publication of such ill-intended malicious reports in Western media in an unabated manner with ulterior motives in all fairness calls into question the role of the nuclear scientist himself who likes to remain in the media both nationally and internationally and lack of efficiency and performance on the part of our missions in Washington, London and elsewhere to effectively project Pakistan’s point of view forcefully and vigorously.

Tariq Javed,

Lahore.

Directive to teachers

The NWFP government has directed the government teachers to send their children to government schools. We ask them what about about their children? They should lead from the front and start sending children to government schools and set an example for others to follow.

ROHUL AMIN,

Swat.