RE-STARTING TAX SURVEY IN KARACHI IS A NAKED DISCRIMINATION AGAINST THE INDUSTRIALISTS, BUSINESSES MEN AND TRADERS OF KARACHI ---- ALTAF HUSSAIN

London – 21 September 2001
Mr Altaf Hussain, founder and leader of Muttahida Quami Movement (MQM) in his statement from London said that the re-launching of the tax survey in Karachi is a naked discrimination against the industrialists, businessmen and traders of Karachi that deserves severest of condemnations.

Mr Altaf Hussain lamenting the Military Government said that choosing Karachi alone while excluding other major cities of Punjab demonstrates the manifestation of the Establishment of Punjab that the capital of Sindh has been exclusively selected to practice racism, racial discrimination and alienation by the Establishment that also tantamount to strengthening its occupation over Sindh.

Mr Hussain said that the Government had started a Tax Survey in May-June 2000 for the detection of new taxpayers and those who are not paying the correct leviable tax on their incomes.  The purpose of this survey, initiated by CBR throughout Pakistan, was to increase the revenue from Federal taxes and catch big fish and tax evaders.  Phase wise campaign was launched in big and small cities with the claim by CBR administration that more than 100 billion rupees will be generated as a result of this exercise within one year.  Karachi and other big cities like Lahore, Faisalabad and Rawalpindi were the first target of this campaign.  After more than a year the in-efficient administration of CBR has not been able to inform the nation about the achievement of survey. According to available sources only a meagre amount of one billion rupees has hardly been collected against the claimed target of 100 billion rupees and lame excuses are being given to cover up the inefficiency.

He said that now when the survey has been completed, it has been announced by CBR that it will be restarted but surprisingly in Karachi only.  The traders and businessmen of Karachi Chamber and Commerce & Industry strongly protested over this during a recent meeting with the new Chairman CBR and Regional Commissioner Karachi Income Tax Zone.  On their protest the official cited the lame excuse that this is being done in Karachi because the survey forms have not been fully returned by the people of this city.  Firstly, there is a great difference between making fresh survey and collecting already distributed forms.  Secondly, why only Karachi has been chosen for this? Why this is not being done in other provinces?

Mr Hussain said that the matter does not end here. The tax officials posted in Karachi have made the life of businessmen and traders miserable, forcing them either to close their business and industry or to shift this from Karachi.  A number of FIRs have been registered against those who have even paid their sales tax dues.  Even the multinational companies were issued embargo notices despite the fact that they had cleared their sales tax liability.  Importers in Karachi go through the same agony of clearing their imported goods from Lahore, Pindi and Faisalabad Dry-ports and bring back the same to Karachi.  Tax officials in Karachi have refused even to comply the orders of honourable high courts and Supreme Court.

He said that this is nothing but a clear signal and message to the traders and businessmen in Karachi that they should either shift their business and industry or they will have to face constant discrimination, torture and harassment.

Mr Altaf Hussain emphasised that Karachi has always contributed over seventy per cent out of the total revenue generated by the Federation in the from of income tax, sales tax, customs and excise duties and further burden will tantamount to extortion and a conspiracy to transfer the remainder of the businesses, industries, commerce and capital to Punjab.

Mr Altaf Hussain demanded of the Government to stop the survey in Karachi forthwith and to end the unfair, discriminatory and prejudice policies towards the businessmen, traders and people of Karachi and Sindh otherwise people would have no alternative but to go for peaceful demonstrations.