WHY WEALTH TAX AND GAIN TAX ENDED | Pakistan Law Reports

Since 1980, the wealth statements of the generals, journalist and the people in close connection with these two started bulging in month if not in days. As the war on Russia proceeded, many of these found it very hard to get in terms with sleazy income tax department. Paying wealth tax at the 2.5 percent was an abhorring thought and that too on the market price. Capital gain tax on property was already abolished. All these two kind of taxes entailed many other frivolities. The source of income for buying the assets was a silly question which was often needed to be sorted out. Our then atomic mafia was not lagging behind in the loud groans and cries against wealth tax. In nineties, the land mafia which also included the sitting and retired generals started feeling the girth of wealth tax. They ranked together with other stake holders. When Musharaf subverted the constitution and overthrew the then balding Sharifs, he took no time to spring into action. He stacked wealth tax with capital gain tax on property and flamed them with abrogation. The master blaster was Mr Malik Riaz, whose piety is even avowed by many a respectable. Our country, called Pakistan lost not only billions of rupees as due taxes but the poor and helpless people were exposed to new power goons known as brokers and developers. In 2001 a new Income Tax Ordinance was enacted and the Income Tax Ordinance, 1979 was abolished. The whole tax structure was rehabbed through curbing the various powers of the department. Huge grants were received from all over the world. The salaries were doubled. It was all done under the banner of cleansing corruption, making system transparent and enhancing the tax revenue by minimizing the direct interaction between tax payers and the department. The heaps of illegal money were manufactured and this process is still going on and on. The housing projects were launched, shamlat bulldozed, revenue officers were made more than servants, as the army officers who were interested in business ventures along with their lineage. This truth can hurt the pride of many but, will remain a glaring fact. This government or Musharaf or Malik Riaz are not only to blamed for looting and the laundering ill gotten money. Sharif brothers can be deemed more criminals in amassing massive wealth with impunity, using their respective governments. They exempted the foreign currency accounts from any probe, and that too of local accounts. That meant that whatever illegal money you got, convert it in FC and deposit it with any foreign currency account. It is legal money and no questions will be asked. The money laundering is still such an easy phenomenon in Pakistan. The foreign remittances were made also immune to any inquiry. It was propagated that this is to facilitate the hard working Pakistanis living abroad. In fact no ordinary Pakistani used the banking channel; firstly it was very expensive as compared to hundi, secondly they were unaware of its efficacy. Thirdly in the normal course, very meager amounts were remitted to support their families on monthly basis. Taxing the poor and sparing the rich needs no Einstein formula to deduce the implications. One can tax poor to make them more beggars and, just pat rich to pile more wealth to already existing heaps. Quoting Javed Choudry’s article “they are all naked in the hamam of Malik Riaz”, do they deserve this, all politicians! Although it is of no use to point out these points to the government who is corrupt and inept, many a hints will be for the young one to understand the present scenario. What a wishful thinking! I reckon.