It is the foremost constitutional duty of any government and its various organs to ensure that the documented economy is promoted and that tax evaders are given exemplary punishments so that state invests in socio economic development schemes, provision of justice, security and welfare of common man.
Unfortunately, in Pakistan, the state itself seems to have become the biggest promoter of black economy. Almost every civil and uniformed institution whose salaries are paid by tax payer are involved in real estate housing schemes, giving multiple plots to paid servants of state under garb of welfare. What started as welfare schemes, giving single plots at subsidised rates for construction of house, has been converted into an abusive scheme for commercial gains by individuals for performing duties they were employed to perform. Multiple plots is not only an irregularity but has blinded bureaucracy to dangers of reducing green agriculture belts in a country with an uncontrollable population explosion. Converting productive agricultural land into housing schemes further aggravates environment disaster and water scarcity, apart from shortages in vital agriculture produce.
When instruments of state employed to serve people become beneficiaries of irregularities and tax evasion, than collective national interest itself becomes victim of greed of powerful elite. These are ideal conditions for money laundering and flight of capital and a shrinking documented economy. The DC Rate on which tax is deducted on sale proceeds of commercial and residential plots is not even a fraction of its market value, contributing to black undocumented economy. If such abuses continue than this state already on verge of bankruptcy will no longer be able to sustain an effective defence organisation, nor provide even basic health and subsidized education, which is far more important than abusive profiteering schemes beneficial only to individuals.
Every state organisation seems to have gone berserk, and the latest is the announcement of the ASF Housing Scheme in Karachi, inviting applications from general public, although our airports have been declared as insecure with innumerable security lapses, which requires their undivided attention to basic task of securing airports. This ever widening gap between revenues and expenditures is being filled by resorting to acquiring foreign loans, which will ultimately jeopardise our nuclear deterrence.
Malik Tariq
Lahore
