All taxable income should be taxed, demands MQM
Karachi: The Deputy Convenor of MQM’s Coordination Committee, Dr Farooq Sattar, demanded that the government address the ongoing energy crisis on a priority basis and ensure that all taxable income be taxed in the federal budget of 2011-2012, which is to be presented by Federal Finance Minister Hafeez Sheikh today.
Addressing a press conference at the Khursheed Memorial Hall on Thursday, Sattar said that the MQM would ensure that Reformed General Sales Tax (RGST) is not imposed in the federal budget. Referring to the ongoing energy crisis in the country, the MQM leader said that the import of LNG must be resolved in the federal budget.
Sattar said that suggested that provisions be made in the federal budget to address the law and order situation throughout the country, and especially Karachi, as it is the financial hub of the country. He added that the stabilising the security situation in the city is in the interest of the entire nation.
The deputy convenor of the Rabita Committee said the monetary policy must be reviewed and mark up rates reduced. He said that this reduction would allow small businesses to flourish and create self-employment opportunities. Sattar added that the budget must provide visible relief to the common man and those who belong to the salaried class.
He suggested that an independent commission be constituted to recover loans written-off on political grounds. Sattar demanded that looted national wealth be returned to the national exchequer.
Referring to rampant corruption, Sattar said that the recovery of tax by the Federal Board of Revenue must be improved. Speaking about optimisation of available resources in the country Dr Sattar said that an additional Rs 800 to Rs 1200 billion could be generated through good governance, efficient tax collection, plugging the leakage in the tax system, eliminating corruption and widening the tax base.
He said that every type of income should be taxed without any discrimination. It was necessary for sustainable economic development to broaden the base of direct taxes. Sattar said that the misuse of Afghan Transit Trade should stop forthwith. This single step could help generate additional revenue of up to Rs100 to 200 billion.
He added that imported and locally manufactured industrial machinery be exempt from all tax and duties. Sattar also suggested that a one-window operation to secure the investments of overseas Pakistanis.
Replying to a question, Sattar said that the MQM will save the common man from the increase inflation rates. He also proposed that the minimum salary for a Pakistani national should be Rs10,000.
Dr Sattar called for the creation of National Security Schemes to cover health, education, involuntary unemployment and old age benefits in the light of the vision of a welfare state seen by Quaid-e-Azam Muhammad Ali Jinnah. He said that the budgetary allocations for education and health should be increased to at least five percent of the GDP. He said that the prices of POL, gas and electricity should be rationalised according to the financial status of the consumer.
Source: The News