The Pakistani Spectator

Government is earning from many heads, petroleum is a major source for enormous and illegitimate earning. Illegitimate in a sense that we import maximum part of daily consumption from other countries, it effect the citizens directly and if the effect is more than it should be then it becomes illegitimate.

We also seek that other countries may give us petroleum products on deferred payment options. On the other hand we earn a lot from it. This practice of not paying and earning a lot put our economy under strains. If we purchase on cash rather than on account even then the earning (profit) margin directly effects on market economy initiating price hikes of commodities.

This is the first time in recent history when the businesses are doing well, exports are on up (may be due to logistics supports to NATO and US in Afghanistan) but the economy is going down every day. In such a case we may sustain a bit by putting taxes, additional taxes, duties & additional taxation on cell phones (which had revenues above 4 billion dollars in 2005) & other sectors. So every documented purchase within the country has to accommodate sales tax @ 16 %.

The revenue becomes in billions of rupees. Companies just have to pay to survive without countable returns. Individuals pay multiple taxes without any significant return to them and their families. Individuals are exposed to income tax, sales tax, excise duties etc every time they spend on food, medicines, traveling (not including petroleum products), education, electricity and what not. A new road is built the toll increases. Devaluation of currency is a big genie in its suit.

All above and not discussed heads of taxation are applied to the nation. When one, by using Petrol or Diesel to make his/her car/bus, goes on the road (paying road tax) pay tolls etc then why to pay taxes & duties on petrol of diesel. If petrol / diesel is taxed then why the toll tax and road tax?

We also seek loans from IMF and World Bank apart from heavy earning from many heads.

Our economy needs serious short term as well as long-term reforms. Case of US of A is different, she has indulged herself on various fronts far from her waters. Earning from one side and paying to the other side is a banking transaction and a debit – credit officer can do it easily. But this doesn’t show any reform, which are much needed for our dying economy. If Mr Shaukat Tareen is unable to introduce certain reforms apart from just introducing taxes, he must resign today.

Fuel prices need to be adjusted at justified level and price of CNG as well. CNG is being sold at international prices, which is not an Imported item. Therefore, Commission decision, headed by Rana Bhagwan Das, must be followed. This commission must also see into the prices of milk and its products.