This is reference to this needless public exchange of statements and counter statements between elected executive and ISPR etc. it should have been avoided and matter discussed in NSC meeting.
However the fact remains that state of economy, investment environment, availability of reliable and affordable energy for exporters to compete in international market and national security are interlinked. As long as uniform direct taxation is not levied on income generated from all sources, individuals will prosper but the state will become poorer. Levy of indirect taxation will only boost inflation. Indirect taxation will not be able to fill widening gap between revenues and expenses, forcing the state to borrow more, nor can the state be able to fulfill its constitutional obligation of providing health and education to all citizens, so vital to curb cancer of terrorism.
Pakistan does need to declare an Economic Emergency. Both the paid and elected public office holders need to tighten their belts and this tendency to over subsidise their affluent life style is no longer a luxury that this country can afford. For the national economy to grow and stabilise, policies must be initiated to make investment in employment generating industry more attractive than over-protected real estate industry, which pays minimum taxes but earns maximum profits. For improving investment climate the Major Stake Holders need to understand that as long as steps are not taken to prevent black money being parked in real estate business and uniform taxes not levied on enormous profits earned, no incentive will work to boost industrial growth and export earnings, nor can tax-net be widened.
An individual earning crores of rupees on sale of real estate but pays lowest tax on DC rate, which is fraction of the actual sale price, is too much of a temptation to resist. In presence of such incentives what is happening is that industries which provide employment opportunities apart from contributing to tax revenues are closing and these investments are being diverted to real estate business. The other factor which is adversely impacting local industry is the ease with which unchecked truckloads of smuggled goods manage to sneak through our land check-posts, seaports and airports.
ALI MALIK TARIQ
Lahore
