The International Monetary Fund supports subsidies to the underprivileged while it opposes any facilitation for the rich. Unfortunately, in the land of the pure the burden of running the inefficient state apparatus is passed on to the already burdened masses. The federal and provincial governments should withdraw all subsidies like free electricity/gas, Â petrol allocation, orderly allowances, chauffeurs, official residences provided to the state functionaries. To control misuse of government transport there should be no individual allocations, and only car pools should be allowed. The nation should not be misled to believe that the IMF is responsible for the price hikes. Direct tax collection needs to be streamlined to provide relief to those who need it.
Ever since the creation of Pakistan only one percent of people pay income tax. Initially the revenue collection agency was called CBR (Central Board of Revenue); later on the name was changed to FBR (Federal Board of Revenue), but the tax collection did not improve.
Musharraf’s handpicked Prime Minister Shaukat Aziz came up with the idea of indirect taxes. Sales tax regime was introduced to meet the growing expenses of the state apparatus. Now everyone has to pay, irrespective of their income. The budget collection limits have been shared with the IMF which mandates strict adherence to ensure timely payments of accrued interest. The bureaucracy is unwilling to cut expenses, it wants the people to carry the burden, making life difficult for the common man who is no longer in a position to pay. Even basic survival has become difficult for the common man.
In civilized countries food items are not taxed. The state meets its expenses through taxing the rich who can pay while subsidizing those who cannot. By some estimates the real GDP of Pakistan is at least three times higher than the officially reported amount of $ 300 billion. It means that income tax collection is seriously lagging behind. Those who come in the net are harrassed while those who keep away remain untouched. For the state to be functional revenue is needed. IMF bailouts can no longer sustain the expenses of a state that consumes more than it produces. Efficiency of a system is measured by its output, not inputs, as has been the case in the land of the pure.
Education and health are two vital sectors for the development of the nation which have been blatantly ignored by respective governments. While the private sector has moved in to make a killing at the cost of the common man, the public institutions face a serious collapse. Those who hold positions manage to get the best treatment both at home and abroad while the underprivileged languish.
The underprivileged segment of the society needs help. Time is running out for them. In the 1960s and 1970s the progressives used the slogan, “East is Red” which calls for revolution. The skewed distribution of wealth within and amongst nations has freshened the call for re-distribution. The trickle down has not taken place. Poverty is on the rise which needs to be addressed, not overlooked as has been the case.
Charitable hospitals like Shaukat Khanum Hospital charge the rich to serve the poor. It seems the revenue collection mechanism of SKH works well. Affluent people are willing to pay voluntarily provided they are not harassed by the inspectors. Personally I know several businesses that pay taxes by the book yet they are given a tough time by the tax authorities who are more interested in lining their own pockets. In India cash transactions have been curtailed with the use of technology. Tax is automatically collected with every transaction. Pakistan urgently needs a taxpayer-friendly system to shore up the much needed revenue.
The ever changing fuel costs keep adding fuel to the fire. While the rich are able to weather the storm the poor suffer. The PDM government tried to provide a fuel subsidy to motorcycle users but badly failed. CNG was used to run automobiles but again the Car owners benefitted more from this subsidized fuel till the country ran out of gas reserves. Now LNG is being imported to meet the needs of the nation. Gas loadshedding has started together with electricity.
A few weeks back I stopped at a local nursery to buy plants. I noticed the redness in the eyes of the manager. On inquiry he told me that he could not sleep at night as there was no power and in the morning he could not eat well as there was no gas. The underprivileged continue to suffer in the land of the pure while the party keeps going for the affluent. To build his morale I shared my work with him on coal gasification which holds promise for inexpensive energy, but he was not convinced. The redness of his eyes could not be reduced by the mere promise of affordable/available energy in the future.
The underprivileged segment of the society needs help. Time is running out for them. In the 1960s and 1970s the progressives used the slogan, “East is Red” which calls for revolution. The skewed distribution of wealth within and amongst nations has freshened the call for re-distribution. The trickle down has not taken place. Poverty is on the rise which needs to be addressed, not overlooked as has been the case.
During my study days in the USA, I once took a ‘ Red Eye Flight ‘ as it was called then, while in Pakistan it was named ‘Night Coach’ by PIA. These were low-cost odd-hour flights. Those who travelled on these inhuman flights were unable to perform when they reached their destination. As a nation we have lost track. Those who need help and hand holding are being neglected while the fat are getting fatter. The pressure of inequality and poverty can blow the lid any time.
