URBANITES HIT AGAIN BY PUNITIVE MEASURES -- SENATOR NASREEN JALIL

21 June 1999
London

Can Pakistan afford a confrontation with its own countrymen, while the security at Pakistan borders is perilous, Nawaz Government continues to exacerbate internal conflicts and national security through sabotage of the democratic political process in the province of Sindh by appointing his Advisor Ghaus Ali Shah as defacto Chief Minister and his other cronies to run the province -- establishing and strengthening the rule of PML(N) in Sindh rather than allowing Sindh Assembly to choose the leader of the House from amongst its members. Strangulation of the democratic process in Sindh is only one aspect of the problem.

In the present budget those who belong to the urban areas are penalised as 75 percent of the total income tax is paid by urban Sindh. It is unfortunate that Nawaz Government has once again targeted the salaried class and professionals in imposing excessive income tax. The well educated, intelligent and successful professionals form the backbone of our urban society who give impetus to democracy.

The donor agencies IMF and the World Bank have always insisted on Pakistan Government to impose tax on agricultural income to distribute the burden of tax on all sectors. The feudals in the ruling coterie have always managed to avoid imposition of tax on agriculture income. No tax on agricultural income has been imposed as yet. Having failed in collecting taxes from those who are able to hide their incomes in collusion with the corrupt bureaucracy, the Government has found an easy target in the salaried persons and professionals. The present increase in income tax on salaried persons and the professional class tantamount to highway robbery and would lead to the breaking of the backbone of society. After all how much burden can they carry?

If you look at the table of taxes, the disparity between a salaried individual and an assessee other than the salaried individual is apparent. There is an incremental effect of 9.09 percent on Rs. 450,000 to Rs. 600,000 on salaried individuals while 0% on other assessees other than salaried individuals on similar amounts. I demand that the unjust additional income tax on salaried class and professionals be withdrawn.