Professional Documents
Culture Documents
Asset declarations
THE asset declarations submitted by our political leadership
can only be described as a joke. Consider the example of
Nawaz Sharif. In the half decade between 2010 and 2015, his
declared assets went from Rs166m to Rs2bn, representing
more than a 10-fold increase.
At the same time, his taxes paid went from Rs2m to Rs2.6m in
2014, an increase of little more than one-third, which on a peryear
basis is below inflation for these years.
NAB raid
THE facts are unsurprising — even if the sums are eye-watering. The lessons are
many
and yet to be fully revealed.
Balochistan, a province that is routinely at the bottom of nationwide socioeconomic
rankings and, historically, perceived to be at the top of corruption rankings, is back in
the
news for all the wrong reasons. This time the matter is financial.
The finance secretary of Balochistan, Mushtaq Raisani, a man so skilled at his job and
considered invaluable by his political bosses that he managed to remain in the same
post
since the previous government, is accused of hiding in his home several hundred
million
rupees in cash.
Mr Raisani, now under arrest by the National Accountability Bureau, or his
representatives have not been heard from in public since, but the piles of cash
allegedly
recovered from his house are so huge as to be virtually impossible to have been
staged.
IN the approaching twilight of its term, the government is reportedly trying to resume
the
push towards privatisation.
But a lurking danger now is that the government may have given contradictory
assurances to various stakeholders in the process.
FOR a number of years now, we have been hearing about how NAB lets people
accused of amassing fortunes through corrupt practices off the hook by negotiating
the
return of a portion of the funds they have been accused of acquiring illegally. When
the
matter was raised in newspaper commentaries, NAB wrote an angry letter to all
media
houses accusing them of not knowing their facts, and making the argument that
‗plea
bargains‘ are a normal part of any judicial system. But now, an authority no less than
the Supreme Court has said that the practice is ―in conflict with provisions of the
Constitution, where such power can only be exercised by a judicial forum‖.
THE fact that the number of tax filings for the current fiscal actually dropped
from last year is a stark reminder that beneath the government’s claim to have
increased revenue collection since coming to power lies a vacuum. One caveat
perhaps is that unlike last year, the deadline has not been extended beyond Dec
31 this time. Perhaps the intention is to penalise those who will surely file in the
months ahead. Nevertheless, the fact that tax compliance is not improving even
as revenue climbs is the best indication that incremental revenue is being
squeezed out of those who are already in the net. For example, around 16,000
corporates filed a return this year, even though the total number of registered
companies in the country is around four times that. The sheer incapacity to
ensure compliance even from registered enterprises speaks to the enormously
weak revenue machinery of the state, which is able to come down with a heavy
hand only on those who agree to work within its rules. The tale on the personal
income tax side is even more appalling. Less than 900,000 people filed returns
this year, down from more than a million last year, although it is expected that
this year’s number will rise in the remaining months of the fiscal year.