6 September 2000
WITH OLD BAD HABITS NOTHING
GOOD CAN BE ACHIEVED
TAX - OLD LETHARGIC FACES IN
CENTRAL BOARD OF REVENUE AND
OVERSEAS PAKISTANIS FOUNDATION
Government of His Excellency the Chief Executive General Pervaiz Musharraf has very sincerely embarked on a long due job of economy documentation which the previous governments could not do because welfare of bureaucrats connected with economy was on stake if such a could had materialised. These bureaucrats invented one way or the other so real economy documentation could not be done and only repeated whitening of black money was done for obvious reasons. Now since present government appears to be seriously determined to achieve this goal in order to rebuild the economically crippled country these bureaucrats are doing similar things to avoid this. For example first they brought businessmen on road so strongly never ever seen before. And now.
-
But before that for a while we go to era of Dr. Mehboobul Haq as finance minister. He also desired to increase the tax net. In fact every government always so desired but never practically did or could do. Dr. Mehboobul Haq used a new way and appealed general public in the name of national interest to inform him of such areas where tax was be not paid and that this information would be kept confidential. As a too stupid foolish man (all patriotic honest and sincerely citizens are stupid foolish in fact) my patriotism boiled and I addressed Dr. Mehboobul Haq informing him one such area which could be brought to tax net and where tax was being avoided which was that:- -
Every one of us must have seen every week advertisements in "box" in national newspapers specifically on Sunday editions or pamphlets being distributed on bus stands etc from some "Barri Bajee" or "Baba Jee" claiming that grand father of their grand father was once travelling in jungle where he saw a sick old man. This grand grand father attended this sick man and sick man in return donated a "prescription" to grand grand pa for cure of all complicated diseases like cancer, sugar, infertility etc. And today these grand grand sons only and only on humanity basis were distributing this family inherited prescription "Free Free". The sick man had told the grand grand pa if they ever sold this prescription for monetary gains the "secret healing element" will lose it characteristics. Knowing well the truth of all this "free" medicine:
a) I addressed two such Baba Jees and Gin Baba at Lahore. I wrote in broken urdu to pose if I was a semi literate worker. In return both Baba Jees told me the cost of their prescription was Rs. 10,000 and Rs. 13,000 which comprised only cost of herbs used and did not include any labour which the family was doing in preparation of the medicine from herbs. And according to these Baba Jees “dozens” of people every day obtain this. In other words it mean each Baba Jee was earning 12 people daily x Rs. 10,000 per patient X 365 days of a year whereas a person earning Rs. 40,000 annually was under tax net.
I forwarded both these letters to all income tax commissioners by name listed in lahore telephone directory. No one replied and I kept on sending reminders. Seeing a foolish stupid man in his patriotism was not stopping a P.S to a commissioner income tax gave a short reply saying one baba jee had closed his business and other had shifted to Rawalpindi. For more than a year then I kept on sending reminders pointing him matter was not where these baba jees were now rather point was when they were running this business in Lahore were they in the tax net and were paying tax according to dozens of patients multiplied by Rs. 10,000 a patient or they were just paying Rs. 700 like our prime ministers. I never got answer. One can guess why?
b. Some 4 years back when a similar empty routine slogan was raised for enhancing the tax net, since bad habits do not die this fool again addressed to a regular advertiser baba jee but of another city offering free family inherited prescription. He sent me good news of a very small amount of Rs. 14,000 which was only cost of material and was likely to increase soon. This time having bad experience with income tax commissioners I directly by name sent this letter of baba jee to Chairman Central Board of Revenue Islamabad. It is now 4/5 years till today I have never ever got a single acknowledgement from CBR.
But hold your breath. After addressing Chairman CBR while I was expecting a thank you letter from Chairman CBR which never came in 5 years, I got a letter 10/12 days from date of my wring a later from Baba Jee saying we thought you were a good man but you are a "......." [can not write here].
I addressed the chairman CBR how it was possible that from within his own office the letter so speedily was syphoned out to the Baba Jee. He never replied.
But you can guess how much and upto what height baba jees and Bajee jees have their links. Thousands and thousands of Baba Jee and Bajee Jees are working on these line, you see every newspaper every digest. These are earning a tremendous which one can guess from the cost they bear on huge advertisement, people employed for distributing pamphlets on bus stops, traffic signals and one can imagine what gold mine they are sitting but our tax people - leave that.
P.S: Whatever is written in para 3 (a & b) above is true and 100% true. I do not have these documents or references today due to passage of time and my living in a one single room with family but every word written is true and I can take oath and read these word holding HOLY BOOK in hand.
-
The present government also desired documentation of economy and started distributing survey forms. Overseas Pakistanis (OPs) also got panicked due to extraordinary campaign in media. They were not guided if they had to fill these Survey Forms then what arrangements were made for OPs to obtain Forms and information. In the meantime some OPs got phone calls from their homes back in Pakistan that authorities were insisting for filling Forms and in certain cases Demand Notices were issued. CBR as usual remained silent and sleeping. -
One OP himself approached CBR when CBR sent him a pile of photocopies of different SROs, rules and law concerning tax economy documentation but useless photocopies. For example one such SRO supplied by CBR to the OP says Edhi Foundation has been exempt from payment of tax on their vehicles. The other says the vehicles imported by National Refinery are exempt from payment of duty. The third one says Islamic University is exempt from payment of tax on so and so. And so on. What Edhi Foundation or Islamic University exemptions are to do with OPs? -
The rules sent not at any place speak about OPs. These do not show:i upto what ceiling OPs are exempt from payment of income tax as in Pakistan less than Rs. 60,000 income is not taxable.
ii Are OPs required to mention and include in the survey Forms their total earning abroad for declaration purpose irrespective whether it is taxable or not.
iii. Are OPs to declare their incomes/earning only those which are accruing in Pakistan.
iv. Are OPs to declare their bank accounts which are only in Pakistan or also which are being maintained abroad where they work.
v. OPs income in Pakistan ie profit earned from bank account, balance in bank account etc are not know to 95% of OPs as banks from Pakistan never send six monthly statements so what are these OPs to do in such cases - only declare approximate amount known to them or just declare existence of an account without balance.
vi. What actually is tax exemption or rate on OPs till today CBR has never clarified. Its attitude had always been lethargic. For example when in previous government empty slogan was raised about increasing tax net I continuously enquired from CBR if OPs were to file income tax returns. The reply after so many reminders was very shameful which was “if an OP so desires or wants to file he can”. This sentence speaks a lot.
vii. While at one hand there is a general perception that Overseas Pakistanis are exempt from payment of income tax on their earnings abroad and whatever they remit through legal channels is also exempt on the other hand same CBR told me sometime back on my enquiry that there was a flat rate of 30% income tax on Non Residents (Non Resident Overseas Pakistanis!). So which one is correct namely “no income tax at all or 30% flat rate?”.
viii. CBR has with much proud sent a photocopy specimen of Survey Form advising this can be copied for use by others. The most shameful thing is this is not a blank Form rather a Form filled up by some citizen and its boxes for computerisation data are so small that entries made there in cannot be erased to make it a blank form.
It is claimed now by CBR that to assist OPs, Forms have been sent to Pakistan Embassies abroad. Even a news items was released that in Saudia, Qatar etc Forms have been supplied in Embassies. I visited Pakistan Embassy Bahrain and I felt shame, much shame when I saw photo copies sent even to Embassies were not blank Forms rather photo-copies of forms filled in and filed by some other people which in no case can be copied as entries therein can not be erased.
This lethargic shameful act is that of CBR but ultimate blame naturally will go to discredit our embassies that they had such forms which cannot be used. No body will think embassies had nothing to do in this rather this is people sitting in Islamabad who are doing all such mads.
ix. The SROs or rule regulation copies which CBR sent or may send are un-understandable by a common man even by highly educated citizens because such SROs or rules are in technical legal language and always refer to some other rule/law written somewhere else in some other book of law which of course is not available abroad.
CBR and including the so-called OPs welfare body OPF have totally failed to realise that and to make a two three page simple cyclostyled or printed booklet written in plain language containing all information in a style every one could understand easily.
-
If OPs could not file their documentation survey forms then who is to be blamed? An OP or CBR. -
His Excellency Chief Executive very sincerely wishes to documentise the economy, increase the revenue by tax collection and claims are this year CBR will do this and that but point is still the old faces who had been in previous rules and still are protecting Baba jees and Bari Bajees, and had been and still are lethargic in sending filled in forms rather than a blank form are still there how can our honourable Chief Executive think of achieving his sincere good goals?
Muhamad Javed