| June 8, 2003 | Sunday | Rabi-us-Sani 7, 1424 |
Muslims in Canada to challenge secret ‘terrorist’ trials
Truth about phoney awards
OTTAWA: Muslim groups in Canada are planning a class-action suit against Ottawa to try to gain the release of a Moroccan immigrant held without charges for alleged terrorist links.
ISLAMABAD, June 7: Following is the text of budget speech presented by Finance Minister Shaukat Aziz on Saturday afternoon in National Assembly.
“Bismillahir Rehmanir Rahim
Mr. Speaker
1. It is an honour for me to present before this august House the annual budget of the federal government for the year 2003-04. Budget will be presented in two Parts. In the first part, I will present an analysis of the economic policies, development programmes and human development programmes that our government has initiated. In the second part, I will give details of the tax strategy and put forward the tax proposals for next financial year.
Mr. Speaker
2. This is the first budget of our democratically elected government of Prime Minister Mir Zafarullah Jamali that came into power in November 2002. The government has formulated a realistic programme to ameliorate economy of the country. The abilities of our nation are second to none, and if we pursue and implement the right policies, we can face any challenge. We can take charge of our better future and can give a promising future to our present and coming generations. Together we should play our part of a true Pakistani so that we take our country to those heights where our future outlook is assured and nobody can cast an evil eye on our existence; prestige of the country is glorified and Pakistan attains a respected and rightful place regionally and globally in the comity of nations.
3. Economic stability, continuity and consistency of economic policies are the Government’s highest priority. Shifting moods and changing priorities through Li-turns would not improve the state of the economy. Instead, it will sprout an ambience of uncertainty.
4. Therefore, government has decided to pursue the economic policies of the past three years that are gradually beginning to pay dividends and have laid the strong foundations to build upon our reform agenda. These policies will be continued. On this basis, we are initiating a programme of second generation reforms that will bring forth more prosperity in the country and improve the living standard of our people.
Mr. Speaker
5. Pakistan is standing at an important crossroads. If we advance forward by implementing the right policies, the country’s economy would grow rapidly; and if God forbid we do not execute the right policies, the economy will be derailed.
6. We do not aspire that Pakistan should again be humiliated by carrying a begging bowl before international financial institutions. We wish to deal with them on the basis of equality and in a dignified manner. For this we have to do away with the beggar bowl syndrome and the culture of crises management.
Mr. Speaker
7. We are making a new beginning. It is an extremely important journey whereby we can transform the future of the people and the country. It is therefore imperative that we stride forward in unity, irrespective of our political affiliations or social attachment; and in a cooperative fashion by strengthening one another in a true Pakistani spirit because our masses want to take charge of their future. They rightly ask that even after the hard work of 56 years, when would we be able to extricate ourselves of this imbroglio?
8. I have a firm belief that no global power can keep Pakistan at bay if we move forward in a cohesive manner.
Mr. Speaker
9. Since budget is an integral part of economic policy, it is imperative that I should apprise the House of the budget’s philosophy and its key economic indicators. In this regard, the Economic Survey of Pakistan 2002-03 has already been released. Therefore, I will briefly touch upon some fundamental statistics:
1) By the grace of God, the country’s Gross Domestic Product (GDP) during the current financial year increased by 5.1pc and is better than this year’s initial target of 4.5pc and previous year’s revised GDP growth of 3.4pc. This GDP growth is the highest in the last 8 years. This growth rate has taken Pakistan out of the low growth phase that the country was experiencing for the last five years; and today we have the highest growth rate in South Asia.
2) Per Capita income has increased by 12pc on account of this growth.
3) Each sector of the economy has played its due role in GDP growth. Agriculture has grown by 3.8pc. Large Scale Manufacturing has grown by 8.7pc and Services sector by 5.2pc. The performance of all these sectors has surpassed its targets.
4) Inflation remained 3.3pc, which is better than the target of 4.0pc. This has brought stability in prices and supply of all items has increased. This is owed to continuity in economic policies and stability in exchange rates.
5) Investment has reached 15.6pc of GDP, which shows that our private sector is gaining activity and investment is taking place in the textiles, engineering and the small and medium enterprise sectors.
6) Foreign direct investment, during the first nine months of this year has increased by over 100pc and has touched about $700 million.
7) Our foreign exchange reserves have reached $10.5 billion and these are equivalent to finance eleven month of imports. These reserves have given us economic sovereignty as well as strengthened investor’s confidence and exchange rate. Growth in reserves has been due to increase in exports, which has been 21pc: Workers’ Remittances have seen a historic increase, which would be more than $4 billion during this year; and this increase in reserves is also due to rescheduling of our external loans.
8) In addition, our current account had a surplus of $3 billion, which is a sign of economic recovery.
9) As a result of all the above policies, Pakistani rupee vis-a-vis US dollar has appreciated by 11pc and this would have been even better but the State Bank stabilized the dollar rate in a prudent manner to arrest any negative effect on our exports.
10) This year our tax collection has increased by 15pc and we hope to achieve this year’s target Insha Allah.
11) Expenditures have been kept under control. Provision of sufficient funds was ensured for the key expenditures comprising education, health, development programmes and defence.
12) Our Fiscal deficit would be contained to 4.6pc of the GDP due to increase in our revenues and control in expenditures.
13) I am pleased to announce that the colossal amount of funds that were used to service debt liabilities, have been curtailed substantially. These expenditures have come down from 66pc to 36pc of our revenues. This is an important improvement which has provided additional fiscal space.
14) The mark-up rates have substantially declined. Due to our policies, mark-up on government’s domestic debt has also come down significantly. Today, government is paying less than 2pc mark-up on treasury bills.
15) Banks and financial institutions are sufficiently liquid, which has improved investment. Bank loans for the private sector have reached Rs120 billion this year as compared to Rs37 billion last year. Loans for agricultural sector have increased to Rs38 billion this year compared lo Rs35 billion last year.
16) Pakistan’s stock market is on its way to attaining new heights. Today. Pakistan is rated among the few best performing markets of the world.
Mr. Speaker
10. These statistics reveal that the economy has been stabilized and country’s economic sovereignty is being restored. This also tells that the current programme of IMF would Insha Aallah be our last one; and this would be a major signal for achievement of an important milestone towards Pakistan’s economic sovereignty. Stability in the economy is the result of reforms pursued in the country. I would like to mention here that these reforms began fifteen years ago, in which every government has made its contribution. But since continuity could not be sustained in the reform programme, the desired results could not be achieved. However, under the leadership of President General Pervez Musharraf, reforms were implemented with consistency and without reversal of policies. Consequently, positive results are beginning to show.
Mr. Speaker
11. Despite improvement in economic conditions, we are still confronted with challenges. Among these, there are five challenges where we need to concentrate. These are:
1) Our GDP has to grow at an accelerated rate through investment in public and private sector. This would reduce poverty and create employment for the poor.
2) We have to further increase expenditures on education, health and human development.
3) Due to haemorrhaging in public sector enterprises, we cannot increase expenditures commensurate with our requirements. This has to be corrected so that more resources could be provided for human development.
4) There are still many areas in the country that lack roads, water, power, gas and other basic infrastructure. We need to do a lot in this regard and would require additional fiscal space for this purpose.
5) We have to further increase the investment level. Our businessmen and industrialists have played a prominent role in economic development. We have to focus on these challenges and formulate second generation reforms to move forward. Today’s budget is the first step towards that direction. We anticipate cooperation from all in this journey.
Mr. Speaker
12. This year’s budget is a part of a three-year macroeconomic framework spanning from 2003 to 2006. At this moment, I am presenting key features and important targets of this framework. Among the macroeconomic targets:
1) Increase in GDP to 6pc by FY 2005-06.
2) Inflation to remain at 4pc throughout to FY 2005-06.
3) Investment to GDP Ratio to reach 18pc.
4) Fiscal deficit to reduce to 3pc of GDP.
5) Current Account Deficit to remain in the vicinity of 1.8pc. of GDP.
6) Pakistan’s foreign exchange reserves to remain minimum equivalent to 28 weeks of imports.
13. These statistics reveal that we are already performing better in some targets and will improve the remaining in the years ahead.
Mr. Speaker
14. Now I wish to give some details of the Annual Development Plan which is an integral component of the budget and has the potential to increase the growth rate of the economy.
15. The National Economic Council chaired by the Prime Minister Mir Zafarullah Khan and attended by four provincial Chief Ministers and federal ministers, has approved the annual plan of Rs160 billion. This programme is 30pc higher than the current financial year’s plan of Rs120 billion.
16. This increase is unprecedented in the history of Pakistan and has been made possible due to decrease in debt servicing payments and increase in revenues.
17. Development programme has three important objectives
1) That we provide resources for education, health and poverty reduction.
2) We improve the availability of water for agricultural sector through construction of new dams, new canals and by improvement in the present irrigation system.
3) Third aim is to improve our infrastructure which includes roads, railways, electricity and gas supply.
Mr Speaker
18. For achieving these objectives, we are taking the following measures:
1) We are spending increasingly higher share of expenditures on poverty reduction. This year Rs161 billion have been expended and next year we will take these to Rs185 billion which is 15pc higher. These expenditures include education, health, population planning, water supply and sanitation, rural development and housing. Now I would present few important points relating to development programme.
2) We have allocated Rs3.1 billion for education sector which is 80pc higher compared to last year. Provision of Rs4.5 billion has been made for higher education which is 20pc higher compared to previous year.
3) In health sector, we have allocated Rs4 billion, which are 20pc higher than previous year.
4) We have kept Rs4 billion for Tameer-e-Pakistan programme which will be made available to the Parliamentarians. Electricity, gas, water supply and other small schemes will be completed under this programme.
5) Rs2.5 billion will be provided for food support programme, which will provide cash subsidy to 1.2 million poor families.
6) We have come a long way in the area of micro-finance. Khushhali Bank has opened its offices in 35 districts, and 75,000 poor families have been disbursed an amount of Rs1.3 billion. Its offices are being opened in all districts. In addition to that, micro-finance operations of the Poverty Alleviation Fund through private sector and NGOs are providing loans to thousands of poor people, the number which is increasing with time.
7) Zakat programme is also alleviating sufferings of one million poor.
8) Information technology remains an important focus of the government. A large number of projects aimed at promoting IT and its education have been completed and many more are planned for the next year. For this purpose an allocation of Rs2 billion has been made.
9) Special importance has been given to agriculture and water sector. Rs17 billion have been earmarked, which are 60pc greater than previous year. Emphasis in this sector would be laid upon dams, new canals and lining of canals, which would improve water supply and generate employment for thousands of people.
10) In the infrastructure sector, we are providing sufficient funds to electricity, railways and roads. Rs56 billion are being provided to this sector, which includes construction of new roads and projects relating to gas supply, electricity and railways.
11) Gwadar port is a project of historical significance for Pakistan. Gwadar would serve an important seaport for Pakistan. Afghanistan and Central Asia. Work on this project will be completed by the end of next year through the cooperation of our friendly neighbour China. Government has decided to declare Gwadar as a Special Economic Zone. All imports coming through this zone would be exempted from customs duty and sales tax along with sufficient concessions on income tax. Details relating to Gwadar Special Economic Zone would be released in the next few months.
19. Debt is a major economic ill afflicting our economy. Government has developed well a planned strategy to reduce the debt burden. Over the last three years, we have reduced the burden of most expensive foreign liabilities on Pakistan by nearly $3 billion from $37.9 billion as on 30-6-2000 to a projected level of $34.9 billion as on 30-6-3002. This represents a reduction of nearly 15pc in foreign liabilities. In addition, our external debt has undergone a major re-profiling, whereby the share of expensive debt has declined compared to soft term debt. Both these initiatives were made possible through a combination of rescheduling, increased availability of foreign exchange reserves and contraction of soft loans. We have developed a plan to retire expensive foreign loans worth $4.5 billion in the next few years. Due to this at least $1 billion worth of loans will be retired annually.
20. On the domestic side we have achieved considerable success by reducing outstanding domestic debt as percentage of GDP for the second consecutive year. From 50.5pc of GDP in 2000-01 the outstanding domestic debt has declined to 43.5pc of GDP. This has been made possible by a massive reduction in the rate of return on government borrowing, which at present is less than 2pc for treasury bills. Consequently, the overall debt servicing burden has declined significantly from 64pc of total revenues to only 36pc of revenues. Clearly, this has provided the much needed additional fiscal space which has allowed us to spend more on development budget.
21. Inflation was contained due to government policies and aggregate increase in prices remained 3.3pc. Our prices are relatively low when compared to neighbouring countries. However, electricity prices are sensitive to the price of oil in global markets. Both Wapda and KESC are trying to improve their performance. Government has provided an amount of Rs.76.5 billion in subsidies to both Wapda and KESC. Rs53 billion have been earmarked in next year in this regard. The prices of electricity have not increased to the extent as these could have in the absence of these subsidies. Prices of electricity are likely to be decreased in the next two to three years because there will be reduction in payment to IPPs, furnace oil is being replaced with gas, Ghazi Barotha project would be operational and electricity production through coal will begin in Thar. These measures coupled with improvements in efficiency of KESC and Wapda, will have positive effect on prices. In addition. Prime Minister has constituted Alternative Energy Board, which would promote electricity generation projects through solar and wind energy.
22. Government is laying special emphasis in creating employment opportunities. Public and private sector investment is required in this regard. As you know, this year we have increased our development budget by 30pc, which is a historical increment. This would provide thousands of job opportunities.
23. In addition to that, facilitations to SME sector and provision of micro-credit would further provide job opportunities. This year Overseas Employment Corporation assisted in providing jobs to about 150.000 Pakistanis abroad. We are striving in this direction and it requires further efforts. We are enhancing private investment to create more employment opportunities.
24. Present improvement in economic indicators and continuity in policies have put forth a rising trend in private sector investment. We hope that businessmen and industrialists of the country would invest more and create additional job opportunities. Proposals announced in the budget would enhance investment in the country.
25. SME sector has a vital role to play in increasing investment and creating job openings. Reduction in mark-up rates and tariffs would further encourage investment in this sector. State Bank is framing new prudential regulations for this purpose, catering to special needs of this sector. SME Bank is also being made more professional and proactive.
26. Expatriate Pakistanis are playing a crucial role in improving the economy. Remittances are likely to reach the record limit of $4 billion, foreign Exchange Remittance Card scheme is being streamlined and duty allowance for Silver Card is being increased from $800 to $1,000 and for Gold Card from $1,500 to $2.000. In addition, in baggage allowance, duty free imports of DVD, CD players, tape recorders, sewing machine and gas burners are being included.
Mr. Speaker
27. In any civilized society owning a house is a necessity for every family. In Pakistan, sufficient attention has not been given to development of this sector which was due largely to the non-availability of financing. According to an estimate, there is a shortage of about 5.4 million houses in Pakistan and this is rising every year. Provision of financing is essential for the growth of this sector. Also, because the sector holds strong backward and forward linkages with other industries, its growth will unleash growth in these related sectors. Government is there fore making such arrangements with State Bank that would enable people get loans to build or buy houses. As an important step we are initiating a programme whereby government employees will he provided guarantees to obtain loans to housing from House Building Finance Corporation .
28. To develop Housing sector, government has decide to provide some incentives which include:
1) 25pc reduction in excise duty on cement.
2) Elimination of excise duty on wires and cables.
3) Increase in limit of tax exemption on mark-up.
4) Improvement in lending ratio.
5) Increase in maximum limit of loan.
29. Availability of loans on easy terms will result in development of this sector. This will also result in increase in demand of down-stream industries and employment opportunities will be created.
Mr. Speaker
30. Now I shall present before you budget estimates for the next financial year. The budget size for the next financial year is Rs805 billion. Salient features of this budget are as under:
1) There is an increase of 30pc in development budget, which is a record.
2) There is a slight increase in current expenditure.
3) Significant reduction in debts servicing costs.
4) Sufficient funds are provided for country’s defence.
5) There is an increase in the amount of subsidies especially for electricity.
6) There will be a handsome increase in CBR revenues and the new target will be Rs510 billion.
7) The combined effect of these statistics is significant reduction in budget deficit. This will reduce country’s debt burden and fiscal discipline will be maintained.
Mr. Speaker
31. The Government of Prime Minister Zafarullah Jamali is cognizant of the fact that some segments of the society are in need of special relief. Accordingly, number of relief measures have been adopted in this budget:
1) The salary of government servants is being increased. This increase is in the light of the recommendations made two years earlier by the Pay & Pension Committee.
2) Pensions of retired employees is being increased.
3) To provide relief to widows, a Special Savings Scheme along the lines of pensioners is being initiated. This scheme will offer higher rate of profits.
PART-II
Mr. Speaker
32. Now I come to the second part of the budget speech which contains Tax Proposals.
33. Tax Policy and administration have been an important part of Government’s reform agenda. We have made considerable progress in the direction and it would remain an area of prime focus of our future efforts.
34. Important measures taken in the Tax Administration reforms are follows:
INCOME TAX
35. New Income Tax Ordinance 2001 that has been made effective in current year is a revolutionary measure which would facilitate payment of taxes, minimize interaction between tax officials and taxpayers and the discretionary powers of tax officials would be curtailed.
1) To facilitate payment of taxes, a Large Taxpayers Unit has been established in Karachi, and a number of Medium Taxpayer Units are being opened in different cities. Provision for payment all taxes would be made available in these units, in a friendly and professional ambience.
2) Under the new law all income tax returns will be on self-assessment basis and audit mode is being adopted to replace the existing culture of assessment regime. Self-Assessment is easy, simple and transparent.
CUSTOMS
36. In the area of Customs, we have taken the following steps:
3) The objective of customs reforms is to discourage mis- declaration, under-invoicing and smuggling, which causes loss of billions of rupees to the country.
4) Clearance of goods at the sea-port and airport would take 48 hours instead of 8 to 10 days.
5) Procedure of customs clearance is being made easy through computer-aided filing of import documents and system of risk management and self-assessment.
37. This would expedite clearance of goods worth billions of rupees at Karachi sea port and would facilitate our industrialists and businessmen. Pilot of the new system would commence this year which would be extended to the whole country from the next year.
SALES TAX
38. In the case of sales tax following measures are adopted;
6) Alternate Dispute Resolution System has started functioning. Panels have been formulated in the private sector through this system and these panels would play an important role in addressing the issues related to Sales Tax.
7) Through a number of reforms undertaken by the government refund of sales tax is being simplified, and refunds to Gold and Silver Categories would be made in a single instalment instead of multiple instalments.
8) Although the reforms in tax refund system would cost an additional Rs6 billion to the government, we are implementing this to facilitate the exporters so that our exports can be increased.
Mr Speaker
39. Now I present the tax proposals for the financial year 2003-04
INCOME TAX
1) As I have mentioned earlier, government is taking various measures to encourage housing and construction sector. Tax rebate on mark-up up to an amount of Rs500,000 or 40pc of the income, whichever is less, would be given to those individuals who construct their houses through bank loans. This facility would be valid on all loans obtained from any bank or non-bank financial institution.
2) Presently, the rate of withholding tax on property income is 7.5pc on an annual rental ceiling of Rs100,000. This upper limit is being increased to Rs200,000 whereas the rate of withholding tax is being decreased from 7.5pc to 5pc. This measures would also have a salutary effect on construction of new houses.
3) To promote leasing industry, any amount paid on account of lease rental to a bank or a non-bank financial institution would be considered as a tax deductible expense.
4) Deduction of Tax on Defence Saving Certificates will be assessed every year, which would reduce tax payment and consequently net profit would be increased.
5) Presently, the income on Brokerage and Commission is applicable to 5pc withholding tax and income on Indenting Commission to 10pc withholding tax respectively. It is being reduced to 5pc.
6) It has been a long-standing proposal of industrial units that loss incurred during tax holiday period should be adjustable during post-tax holiday period. This is a reasonable suggestion which is being included in the budget to promote investment.
7) Withholding Tax is adjustable at import stage, if the industrial undertaking is importing raw material for its own consumption. It is proposed that this facility should be extended to the import of fixed and capital assets also to facilitate investment.
8) Importers who are importing raw materials for own consumption, are entitled to exemption from withholding tax at import stage. For this purpose an exemption certificate is issued. To remove difficulties in the process of obtaining this certificate it has been decided to issue the certificate for one full year.
9) The facility of initial depreciation is also extended on second hand machinery.
10) To facilitate the process of foreign investment it has been decided to initiate a process of advance rulings on tax issues. A committee headed by the chairman, CBR, and comprising member (income tax) and additional secretary law division will be responsible for giving such rulings.
11) An important feature of the new income tax law is that exemptions are being done away with, and there is a gradual reduction made in the rates of taxes. In this connection it is proposed to eliminate 20 exemptions that are presently available.
12) Wealth Tax was abolished a few years ago. However, the Wealth Tax Act is still in place which is causing suspicions and skepticism. It is therefore proposed to repeal this law.
40. In addition to this, as per government’s policy, reduction in income tax regime would continue. This year reduction for private companies @ 2pc and for banking companies @ 3pc would be implemented. It is our policy to have a uniform maximum rate of income tax, not exceeding 35pc.
CENTRAL EXCISE DUTY
41. Now I present tax proposals relating to Excise Duty:
13) In order to reduce prices of books and stationery, it has been decided that the existing excise duty of 5pc on paper and board should be abolished. This measure would reduce prices of paper and packing material.
14) We are taking another step to encourage housing and construction industry. Ten per cent excise duty on wire and cables is being abolished.
15) Another step in this connection is 25pc reduction in the applicable excise duty of Rs1000 per ton on cement. This would provide an added advantage to housing and construction sector.
CUSTOMS DUTY
42. The following proposals for customs are made:
16) Substantial amount of foreign exchange is expended on import of edible oil. It is imperative that we should take steps to promote local production of edible oils. It is hereby proposed that the present customs duty of 10pc on imported oilseeds should be replaced with 20pc sales tax. This measure would help increase the indigenous production of edible oils and the price of ghee would remain unaffected.
17) Marketing efforts are essential for the export of agricultural produce particularly vegetables, fruits, rice, meat and dairy products. To this effect, import of machinery for branding, grading, processing and storage of the above agriculture produce would be exempted from sales tax. This step would fetch better price for our growers and also increase country’s exports.
18) In the present sales tax regime, imported items have an edge over the locally produced goods. To rectify this anomaly, it has been decided to have a level-playing field for both imported and locally manufactured items and all goods confronted with such differential should be zero rated. The products likely to benefit from this measure include a wide range of medical equipment and items of defence production.
19) CBR and Ministry of Industries have jointly studied few key industries and in accordance with their requirements, it is proposed that the rate of duty on 112 such items which are used as raw material in these industries be reduced. These industries include heavy engineering, light engineering, fans and ceramics whereby their input cost would be reduced and their competitiveness would be enhanced.
20) Automobile industry has reached a stage of self sustainability. Therefore, now it is proposed that protective duty should be lowered in favour of consumers. In this regard, rate of duty on vehicles of 1800cc and above is being reduced from 200pc to 150pc.
21) Smuggling is a menace to our industry. To eliminate this, it is proposed that the rate of duty of those items that are smuggling prone should be further reduced so that the tendency to smuggle these is checked. This includes tea, spices, silk yarn and ball bearing.
SALES TAX
43 Now I wish to present Sales Tax proposals.
22) To address the complaints relating to sales tax refunds an effective mechanism in the form of DTRE based upon No Duty No Tax-No Drawback, has been formulated. This new mechanism was not fully utilized by all exporters. Government in consultation with FPCCI, is removing all irritants and bottlenecks that were confronted in implementing this mode.
23) I am pleased to report that the government has accepted the recommendations of the committee headed by the Chairman Export Promotion Bureau, and the DTRE rules have been revised accordingly. Exporters can now claim duty drawback on locally purchased raw materials. In addition, exporters can also buy raw materials without paying sales tax and claim drawback on the raw material where duty has been paid. At this stage I would like to underscore the fact that the government has exhibited a high level of flexibility and understanding to resolve this issue. Now that it has been resolved we should leave this behind us and look forward. It is the responsibility of business community to work day and night with dedication to increase exports.
24) With regards to sales tax audit, it is complained that audit takes place many times during the year. To address this issue, it has been decided that through an appropriate amendment in law, audit would be conducted once a year and audit report would be shown to the taxpayer so that he could explain his viewpoint. Apart from that, it will be the responsibility of the Auditor to issue a certificate to the tax payer certifying that audit for a specified period has been done.
25) In consultation with FPCCI and other representative bodies of the taxpayers it has been decided to grant relief for liabilities of sales tax before 30th June, 2000. Such persons who have been registered either voluntarily or compulsorily with effect from 01-07-2000, would now be liable to pay turnover tax @ 2pc on the basis of their declaration with income tax authorities for the financial years 2000-2001 and 2001-2002 without any additional tax and penalty. Moreover, all business persons who get registered up to 30th September, 2003 pay turnover tax @ 2pc only for one year and no question would be asked about past liabilities. This is a major concession to facilitate transition to a full VAT mode tax system. This facility will have to be availed before 30-9-2003.
26) It has been decided to provide further relief to tax payers. In this connection, the rate of additional tax is being reduced from 2pc to 1pc; whereas the rate of penalty on delayed filing is being reduced from Rs5,000 per day to Rs100 per day.
27) In order to facilitate small taxpayers. It has been decided that the ceiling of minimum turnover liable for tax should be increased from Rs2.5 million to Rs5 million, whereas for wholesalers, this limit is being increased from Rs5 million to Rs20 million. Now the estimate of turnover of such taxpayers would be assessed on the basis of a predetermined set of parameters comprising location, type of business, number of workers and amount of capital, etc.
Concluding Remarks
44. This is a budget without any new taxes. In fact we have proposed a large set of relief measures aimed at improving the welfare of the common man. These include increase in salary, pension and provision for housing finance. In addition, the budget provides encouragement to private sector for investment in SME, housing and agriculture sectors all of which have the potential to create new jobs. The development plan included in the budget will accelerate the growth process and employment creation. This budget will thus be an harbinger of renewed economic activity in the country. This is the need of our economy, which has been stabilized and is now poised for a take- off. This is indeed a golden opportunity for our nation. We have all the necessary elements in place. It is up to us, how far do we want to take this country.
45. The key to our future success will be our ability to stay the course. Continuation of reforms and consistency of policies are essential. It will be easy to stray this course, more difficult to hold ourselves together and forge ahead with second generation reforms. The dividends of reforms that we are already reaping should be a sufficient basis to hope for an even better future that awaits us.
46. We must remember what our beloved Quaid-e-Azam had to say on a similar occasion on the completion of the first year of Pakistan:
One year is a brief period in the history of a State for finally assessing its progress or predicting its future. But the way in which tremendous difficulties have been overcome, and solid progress recorded during the last twelve months, gives a firm basis for optimism. In the administrative field, we had to start from scratch at the centre. And in West Punjab, at the very inception of our State, we had to face very nearly a breakdown of administrative machinery. But I am glad to say that we have successfully dealt with all threats to our solidarity, and on some major questions of the day, the Pakistan government has displayed not only its determination but its capacity to deal effectively with the various world problems that have been arisen from time to time.
Nature has given you everything: you have got unlimited resources. The foundations of your State have been laid, and it is now for you to build and build as quickly as you can. So go ahead and I wish you Godspeed.
47. These precious words and wisdom are still relevant to guide us to traverse the road to future progress. We see a very bright future for Pakistan. A future where Pakistan is a well recognized economic power of the region capable to protect its sovereignty and defend its territorial and ideological borders based on self reliance and internal strengths, a Pakistan that can play a leading role in the Islamic world and act as a catalyst for world peace and prosperity.
48. Though not far fetched, to realize this vision, there is no substitute for hard work, determination and devotion. All great nations have passed through the furnace of relentless labour and determination. Prosperity is never begotten from thin air, it is built on the solid foundation of sweat and toil. Perhaps this is precisely the message in this verse from Dr. Allama Iqbal:
Naqsh hein sab na-tamam
khoon-i-jigar key beghair
Naghma hey saudai khaam khoon-i-jigar key beghair
49. So let us resolve and pray to Allah that He enables us to rise to the challenge of building Pakistan as a prosperous and respectable nation in the comity of nations. There is no doubt that Allah’s support and grace will be with us if we display sincerity, unity and discipline in our ranks while forging ahead to achieve our goals. May Allah continue to bless Pakistan with His unlimited bounties.
50. Pakistan Paindabad.”
Adil Charkaoui is one of several immigrants to Canada held in jail on “security certificates”, which allow judges to deport legally admitted foreign nationals without charge or disclosure of evidence.
Critics say the certificates were rarely used before the Sept. 11, 2002 attacks on New York and Washington but have been increasingly used against Muslims since then.
The small amount of information disclosed by authorities to the Federal Court shows the Canadian Security Intelligence Service (CSIS) interviewed Charkaoui just three days after the 9/11 attacks. He was also interviewed by U.S authorities while visiting New York last year but no charges were laid and the 29- year-old graduate student was released with a warning that he had been placed on a list of suspected terrorists.
Muslim Canadians want to launch the lawsuit, said Salam Elmenyawi, president of the Muslim Council of Montreal, because the security certificates have been — with just one exception — used against Muslims.
“It’s harming our community,” Elmenyawi said in an interview. “The process of applying the law has been very discriminatory.”
Elmenyawi has never met Charkaoui, the suspected terrorist. But the man’s guilt or innocence is not the point, he says.
“It’s about the process. The things Charkaoui is accused of — like travelling to Pakistan — apply to many Muslims. CSIS seems to believe every Muslim is a sleeper and you just have to push a button and they become a terrorist.”
He says a lawsuit would be a costly affair, “but we’re getting very serious. We’re sick of this treatment. The issue for us is fundamental justice and to make sure our politicians will not abuse the Canadian laws,” Elmenyawi added.
“We want the charges, the secret evidence and the foreign evidence to be brought forward and be open to everybody. The lack of proper checks and balances in the process of compiling foreign and secret evidence is very dangerous.”
Solicitor-General Wayne Easter, whose department operates CSIS, would not discuss the Charkaoui matter or two other similar cases in Ottawa and Toronto saying they are before the courts.
Charkaoui and his lawyers are not allowed to see the evidence against him or know its source “for reasons of national security”. Only the Federal Court judge who will be hearing the case is allowed to see the entire dossier.
The summary of the documents show they allege Charkaoui, who was living in Montreal, is or was a member of Al Qaeda, is “a danger to the security of Canada” and could “engage in terrorism”.
The summary includes a heavily edited mention of a plot by a Montrealer of Sudanese origin to blow up an Air France jet. It does not name the Sudanese suspect nor does it say what if anything Charkaoui had to do with the conspiracy.
Other CSIS documents often mention Abousofian Abdelrazik, a Montrealer from Sudan whom CSIS describes as a high-ranking jihadist close to Abou Zubeida, lieutenant for Osama bin Laden, and responsible for recruiting and running the network of terrorist training camps in Afghanistan.
Charkaoui admits meeting Abdelrazik in Montreal on several occasions in the summer of 2001.
The man’s next hearing in Federal Court is scheduled for Jul. 2. If his lawyer fails to convince the judge to grant bail, Charkaoui will likely be deported to Morocco.
At a conference last week in Montreal, his sister, Hind, denounced Charkaoui’s treatment. They came to Canada together in 1995, and Adil Charkaoui spent the last eight years in Canada teaching, studying, and working at a series of jobs, his sister said.
“We thought we’d arrived in a country of justice, a country of the law,” Hind Charkaoui told the Montreal Gazette newspaper. Detention without trial goes against basic human rights, she added. “This is a regression to mediaeval practices that are arbitrary. What happened to my brother could happen to any of you.”
The rarely used security certificate process has been part of the Immigration and Refugee Protection Act since the early 1990s. Recently, it has been used mainly against Muslims, like Charkaoui, suspected of being terrorists.
CSIS claims Charkaoui joined Al Qaeda while travelling in Pakistan and was in regular contact with suspected terrorists. It alleges he is a “sleeper” agent who has not committed any crimes but was ready to act when ordered to do so.
The court documents list several suspected or convicted Al Qaeda terrorists Charkaoui is alleged to have known, including Ahmed Ressam, who was convicted of planning to bomb the Los Angeles airport during millennium celebrations.
CSIS claims that in 1998 Charkaoui spent five months in Pakistan, at the same time as Ressam and Zacharias Moussaoui, the alleged backup 20th hijacker in the Sept. 11 attacks. They supposedly trained at the Khaldun Al Qaeda camp in Afghanistan on the Pakistan border.—Dawn/InterPress News Service.
KARACHI: In what appears to be a season of award-giving and ‘mutual appreciation’ ceremonies, we have been arguing persuasively with a well-known veteran social worker for many days now, that very soon he will be nominated for an award in recognition of his community welfare work, that he has served his fellow human beings with selflessness and sustained dedication and deserves to be honoured. He is of course vehement in his view that neither will he accept such an award nor will rather be uneasy and embarrassed at being nominated. He is a humble person, we may add, and rather self-effacing in his world view.
But awards are no joking matter. At least not for those who are in this business of initiating, distributing, hosting and receiving them with such seriousness and solemnity that it is amazing. Truly amazing.
One reflects on the subject of awards, all kinds of awards to all kinds of people, and so many thoughts come to mind. Look at what one citizen said angrily as he read of one particular awards distribution ceremony that was held in the city recently: If we have so many people who are deserving of these awards, for what one organizer described as their ‘Herculean efforts’, then why is this society so backward, so unstable, so disorganized, so corrupt, and forever so disenchanted. We need accountability, not awards.
He said that most of these awards were initiated by private organizations and individuals who could be described as merchants of culture, regardless of the appearances they may have. They take on different facades to masquerade as champions of art, culture and literature, or/and as patrons of phoney organizations. Many of these organizations surface as and when it suits them, others have been there for years and years, and they have varied hidden items on their agenda, often reasons that are purely linked to trade and commerce. They do these awards for image building... primarily their own but use the award recipients in the process. They use genuine people with the phoney to lend it credibility.
One hears interesting stories and anecdotes about this business of awards. Cynics contend there are fake awards also, which never mean nothing.
There was a time when there were only film and sports awards. For example, one is reminded of the annual awards initiated by a popular weekly which was followed by awards initiated by a competing film weekly. Then came the state film awards. But somehow film awards have made way for other awards. And now, in addition to the PTV awards, there are awards by other TV channels, and awards for a variety of reasons. But most awards have little credibility, respect or lasting value. It is only the colourful ceremony that matters. Or not even that. One such award ceremony, held in Karachi, had half the auditorium empty, and half the recipients didn’t show up. Even the recipients know the worth of these awards and many of them consent to being nominated for reasons they can’t turn down. They know the ridiculousness and farce of going up on stage to receive them. Some even lifetime achievement awards.
Now these award distributing organizations have widened their categories and even target students and other people from the world of medicine. Then there are writers, journalists, bureaucrats, police officers, media house owners, broadcasters, social workers, cricket commentators, politicians, artistes, artists, businessmen, serving and retired officials ... the list is growing, really.
So is the awareness in the corporate world that awards are also useful for them; to enable them to pursue what they could consider as their legitimate public relations needs. There are also awards promoted and financed by mediocre management organizations and business and trade organizations all of which create paradoxically a terrible climate of distrust and disbelief.
One has sat through some of these award distribution ceremonies, and the nonchalance and the boredom that is in the air is so obvious. No one even claps unless one is forced to, said one person who is familiar with the business of these awards. People whisper their displeasure.
I was talking to a sociologist on this subject of awards, and he read a great deal of hypocrisy into the whole experience.
He observes that this is a society that in fact respects no one, and truly honours none. Look at the way in which it has treated its leaders of the Independence Movement, and look at the way in which they are remembered and forgotten. Look at the way in which people in power are dealt with, and look at the manner in which a person out of office is handled. It is so disgraceful.
Often at these award distribution ceremonies are distributed glossy souvenirs, sometimes with a generously high number of advertisements. These souvenirs also contain details of the men and women who are given awards on that evening. And the language used to describe these recipients is so flattering and exaggerated that it is both shocking and disgusting. It is such a contrast to what many of those people are in real life, and in sharper contrast to what sort of society we really have. Read one sentence from one such souvenir that was distributed recently in the town and contemplate: “These amazing personalities have made themselves conspicuous through their Herculean achievements and many of them have also gone on to earn global recognition.” Green passport!
Over the years, it is interesting to observe that several of those organizations that distributed awards have disappeared or faded away. And the shine and the lustre of those awards given to men and women have also gone for good. But in the process those bogus and dubious cultural merchants have unfortunately set unhealthy trends, which have made the way for more fake organizations to carry on a tradition that has promoted, not the finer values that a society needs to nourish its soul, but baser values that dull and destroy as well, the health of that community.
Think of the times we read in the media, of such artistes and sportsmen who have to appeal for financial help in the twilight of their lives. Or those once glowing stars of this society who cannot pay their medical bills after they have gone back to the pavilion. Those who initiated those awards made their gold while they could. That was the game, dear citizen.