Re: Former US President Clinton gives Karachi a clean ‘bill’ of health.
^ Rest of the world has port cities tax the goods that pass through it or through the port unlike karachi. Punjab has grown on the tax collected in karachi. Come on people, do you think rurals in punjab pay tax? It is only after the eighties that cities started appearing in punjab.
This statement can not be more misleading and far from the truth. Nobody is growing on anybody.
Who told you Karachi port does not collect taxes. KPT, Wharfage, demaurrage, handling charges etc etc. Karachi port is one of the most expensive in the world...
Today like anywhere else in the world Pakistan also is relying on indirect taxes like sales tax, import duties excise duty etc. Even Income tax in Pakistan has become more of a sales tax rather than a direct tax as it is mostly today deducted at source. The reliance on indirect taxes is more than 80% of the total tax collected.
Indirect taxes are paid by consumers as they purchase goods. So the taxes paid can be directly related to GDP share of a certain area. The total federal tax collected in Pakistan today is close to 12/13% of GDP. Sind share of GDP is close to 30%. Let's assume out of this 30% about 60% is the share of Karachi and 40%is rest of Sind. Based on these assumptions which can not be wrong by more than 3%, total share of Karachi in GDP is 18%. As 80% of tax collected is indirect the only real tax paid more than national average are direct taxes. Therefore one can safely assume the share of Karachi in total real tax paid (not collection) is not more than 20%.
Total GDP share of Sind (exact) = 30.2%
Total GDP share of Karachi (estimate) = 18%
Total real tax paid by Karachi (estimate) = 20%
"Punjab is growing on tax collected in Karachi"---- what a misleading staement is this....
Because both Karachi and Punjab take less share of the divisible tax pool to compensate the rest of the country. If we compensate our less less fortunate brothers in Baluchistan, NWFP, rural Sind, FATA, Azad Kashmir I think it is our duty.....
As far as rural Punjab is concerned my dear friend except for last one month you have been getting Ata at Rs 12 per kg compared to India Rs 24 per kg and international price of Rs 37 per kg. Also if you are getting Ata at an expensive rate today the poor grower from Punjab did not get any benefit from that because all the profit was made by Karachi traders who exported ata to Dubai at US$ 200 per ton. Now the same ata will be imported at US 400 per ton. Provincial Govt. of Punjab has already paid a subsidy of 12 billion rupees so you can get cheap ata. The point is your poor peasant in Punjab is the most taxed guy in the world....
Last but not least there are very few people who understand all these things and just make claims without any logic, calculation, source to support their claims....