Sales tax is chargeable at prescribed rates on the value of supplies and services, but the government has deviated from this principle and levied sales tax on extraneous hypothesis.
For example, clearing agents or importers are required to pay sales tax worth Rs2,500 for filing a cash or an into-bond bill of entry, and Rs500 for every ex-bond bill of entry, irrespective of the quantity or value of goods for which the bill of entry is filed.
A cash/into-bond bill of entry for the value of Rs100,000 involves Rs2,500 as sales tax, i.e. 2.5 per cent of the C&F value is silently passed on to the common man.
The question is, what additional services does customs provide to a clearing agent or an importer for the additional liability of Rs2,500? The clearing agent is already liable for 15 per cent sales tax on his services charged to importers.
Another aspect indicates that the framers of Section 10 lacked vision and sense of justice. It says: "Provided that in case the value addition of such commercial importer during any period in the preceding year was higher than 14 per cent, he shall pay sales tax on supplies of imported goods on such higher value addition in the manner specified in this sub-rule."
The implications are clear and intriguing. If an importer, in any month in the preceding year, declared value addition of more than 14 per cent, he should declare at least the same for the year, irrespective of the fact that value addition may be actually less or nil.
On the other hand, one who declared less than 14 per cent value addition in the preceding year is qualified for exemption from a 'detailed audit'. In other words, one who declared less is rewarded, whereas one who declared more than 14 per cent is punished, having to declare more for the whole year. This is discriminatory and tantamount to applying two rules for the same class of importers.
Besides, it is against justice. Value addition cannot be static or uniform in each business and even in the same class of business. It is always fluctuating, depending upon a number of factors.
If the government applies this criterion, it is bound to boomerang, for importers who paid more than 14 per cent in a month in the preceding year will now prefer declaring less than 14 per cent value addition and face a 'detailed audit'.
The national exchequer is bound to suffer, and the corruption culture is bound to flourish. It will also lead many to file law suits. The government should consider this aspect before making a final decision.
NOOR MOHAMMED
Karachi
'Enlightened moderation'
President Musharraf's views on the need for Islamic states to adopt a policy of "enlightened moderation" was welcomed by educated and progressive Muslims all over the world.
People in Pakistan thought that these views would be reflected in the allocation of adequate funds for education, health and other basic amenities in the new budget. They expected that the president would lead Pakistan into the 21st century as a country motivated to achieve progress through higher education and massive allocation of funds for research and development.
I personally was of the opinion that he would try to emulate the Malaysian example. But the federal budget has shattered all my dreams and dashed all my wishes. The funds allocated for education are a mere 6.29 per cent of the Rs193.926 reserved for defence.
Health affairs and services have got a token allocation of 1.67 per cent of the amount allocated for defence. The seven per cent increase in the defence budget is more than the total allocation for education.
The total development expenditure for the federal and provincial governments comes to Rs202 billion. The irony is that the federal government provided over Rs20 billion to PIA last year, so that it could procure three B-777s which at the most will carry 900,000 passengers in a year.
However, frequent delays (four incidents of fire in the landing gear wheel area, innumerable other technical problems) and the never-ending phase of "teething problems" make even this target doubtful. This is a sad reflection on the government's priorities.
The government has a serious crisis of mismanagement, poor law and order and bad governance. Its choice of people appointed to run government and semi-autonomous corporations is very poor, since they have failed to make any progress, in spite of the immense support they enjoy from Islamabad. President Musharraf needs to set his house in order.
IRFAN BUTT
London, UK
Islamic militancy
Islamic militancy and Talibanization are slowly but surely creeping into the national fabric with the help of the establishment. The appointment of Maulana Fazlur Rehman as leader of the opposition is one instance.
What are the Maulana's credentials, besides being the leader of the mulla-military alliance (MMA)? He is the acknowledged patron of the Taliban and Al Qaeda. Before Pakistan took its U-turn, he was sending arms and money to the Taliban, who were mostly the product of his madressah, and Al Qaeda.
He was responsible for the loss of thousands of lives in Afghanistan and Kashmir. He recently stated that he would not allow the Hudood and Blasphemy laws to be discussed.
Qazi Hussain Ahmad, leader of the Jamaat-i-Islami, was recently refused a visa for EU countries although he had a diplomatic passport. He could not have got a diplomatic passport without help from the establishment. What will be Pakistan's position if the leader of the opposition is refused a visa to enter Europe?
On the day Maulana Fazlur Rehman's appointment as leader of the opposition was announced, one of his close associates in the NWFP decided to move the Hisba bill in the provincial assembly. The Hisba bill is based on the Taliban brand of Islam, giving leave to vigilantes to break into people's houses and harass women in the public places.
This is only the tip of the iceberg; more militant Islamization will follow. Only time will tell how much more President Musharraf's 'enlightened moderation' lobby will take. Is this his dream of a liberal, tolerant democracy? Or is he paying only lip-service to the concept?
REHMAN
Hyderabad
Perks of top officers
This refers to the letter "Perks of top 100 officers" by S. Kizalbash (May 25). First, heads of multinationals are not paid out of taxpayers' money. Second, 95 per cent of the top government officers are feudals, landlords and industrialists who can well afford their luxuries without being in service.
In fact, most of them have made money over the years through politics and by being in the corridors of power. The bureaucratic machinery ensures that no one from the middle class reaches the top.
The government should also act sensibly while spending the taxpayers' money. What is the rationale behind constructing a Rs90-million generator for the presidency and parliament house when there is no loadshedding there? Is Islamabad hotter than Karachi or are the parliamentarians from Pluto? Similarly, what is the (productive) use of the national monument to be built in Islamabad at a cost of Rs387.8 million except that it will be visible from all sides and will be inaugurated by the president? It will not solve issues like the Kalabagh Dam and the NFC Award (the monument has been designed to depict provincial harmony).
The common man must realize that unless our rulers come out of their palaces and live like ordinary citizens, they can't lead us anywhere.
TAHIR MAQBUL ZUBERI
Karachi
'Imperatives of coexistence'
This refers to the article by Mr Agha Shahi "Imperatives of coexistence" (June 14-15). As a permanent member of the United Nations Security Council and a large country in the Asia-Pacific region, China attaches great importance to and takes an active part in international security cooperation by sticking to its principles and promises, treating others in a sincere and friendly way, and developing cooperation.
As an important component of its overall diplomacy, China's foreign military contacts are subordinate to and serve modernization of national defence and the armed forces.
It insists on dealing with its foreign military relations independently as well as on engaging in military exchanges and cooperation based on mutual understanding and pro-peace strategies.
In recent years, China has actively carried out exchanges with foreign armed forces on the basis of mutual equality and mutual benefit. It has also actively participated in multilateral and bilateral security dialogues and cooperation in the Asia-Pacific region, as well as in United Nations peace-keeping operations, playing its due part in keeping peace in the region and the world as a whole.
The Chinese armed forces have been active in participating in multilateral military diplomatic activities to bring their positive role into full play in the sphere of international military affairs. Since the beginning of the 1990s, the country's naval vessels have visited nearly a score of countries.
Its time-tested military relations with Pakistan based on four decades need no explanation. In 1996 and 1997 alone, China sent more than 100 military delegations to most of its adjacent countries, and hosted over 130 military delegations from those countries.
In November 1996, China and India signed an agreement on confidence-building measures (CBMs) in the military field along the line of actual control in the China-India border areas.
While China's foreign policy has depicted a trend based on peace and humanity, foreign policy has intrinsically reflected a trend that is anti-peace and against the basis of the Five Principles.
After 9/11, the neoconservatives' policies of unilateralism, preemption and of hyper power have spawned discord and war around the globe. Washington has aggravated the problem of Palestine and has clearly attacked the sovereignty of the Afghan and Iraqi people.
Whether the US administration will learn from the norms established by China to promote peace and security in the international system remains the most interesting question of the day.
S. Q. AFZAL RIZVI
Karachi
New cricket coach
I was pleasantly surprised by the news of the hiring of Bob Woolmer as the national cricket coach. Not that I am not a Miandad fan; I have in fact been one of his great admirers and always thought he was the best Pakistani coach available, but the time has come for a change.
Woolmer has a lot to offer to Pakistani cricket - a different vision of the game that our youngsters have not been exposed to in their daily regiment, a western approach towards physical fitness and mental toughness (which only gets lip service in Pakistan cricket), introduction of technology in the evaluation process of our opponents and match planning (I think Woolmer is the pioneer in this field).
A coach is a teacher. He himself does not have to be a superstar in the sport he is coaching. The prime examples of this are Gary Sobers and Clive Lloyd who were great superstars in their own right but failed as coaches.
What a coach needs is the ability to impart to his pupils the nuances of the game which can take a player to the next level of performance. I am sure that Woolmer has that ability, which he proved during his tenure in South Africa.
I request the PCB to give the new coach enough time to apply his knowledge. The yardstick should not be one series.
SYED ALI ABEDI
Karachi
Value of life
On the night of June 10 I happened to listen to the news on a private TV channel. ISPR spokesperson Shaukat Sultan was heard as saying: "Al Hamdu Lillah, ab tak kisi aaham shaksh ki halakat ki ittilah nahin milee haey" (Thanks God, we have not received information regarding the killing of any important person so far).
The above was with reference to the incident relating to the ambush of the corps commander's envoy in Karachi on June 10, in which 11 persons were killed at Clifton Bridge - seven army jawans, three policemen and a civilian (Dawn, June 11).
Of late, Karachi has seen unprecedented carnage and bloodshed resulting in the loss of very many precious lives. A bomb blast at Masjid-i-Hyderi, the murder of Mufti Nizamuddin Shamzai and a bomb blast at Masjid-i-Ali Raza, all of these incidents have occurred recently. What about all those lives?
In addition to the aforementioned killings, there were other incidents in which lives were lost. Owing to the use of contaminated water, many people died in Hyderabad. What about these lives? Why is it that the lives of ordinary citizens of this country have never had any importance? What have the rulers to say about this?
NIAZ H. JAFRI
Karachi
An appeal
After the 9/11 attacks, the war on terrorism, the prisoners' abuse in Iraq, the recent bomb blasts in Karachi and various other incidents of violence and inhuman behaviour all over the globe, our world today resembles a chaotic torture chamber for humanity. The sanctity of human life is being disregarded.
This is an appeal to the citizens of the world. Don't sit passively in your homes. Don't be indifferent to happenings in any part of the world, for this world is your home and the home of your children. Raise your voices against those who are poisoning this world with hatred. Pull this world out of the dark ages it is slipping into.
SAAD AHMED KHAN
Karachi
Traffic hazards
This is with reference to the letter by Mr Rafi Adamjee (June 6) under the above heading. He suggests that a special task force should be set up to monitor the traffic police.
This reminds me of how one agency after another was set up for Karachi airport during the time of president Zia to check the malpractice of Customs officials. All agencies were merged with the parent force, i.e. Pakistan Customs. The final outcome was an increase in the chunk of shares which only increased corruption.
I am staying at a place some 175km in the interior of Oman. It is a well-developed place with all modern facilities, neat and clean, free from pollution. Although roads are full of modern cars, not one car emits smoke.
Doors of the houses are open until 2am. Daytime robberies are unknown. The expatriate population consists of lots of Indians and Pakistanis but none dares to even throw a piece of paper on the road.
On top of that, no policeman is seen in the streets or roads except in case of accidents or emergencies. One wonders what makes the difference.
HAJI ASHFAQ
Muscat
Polio 'scam'
I want to draw the attention of all the high-ranking government officers, the prime minister and the president to news on national television about a polio vaccination fraud amounting to nearly Rs11 million.
The government must take strict action against those involved in the scam. It must also ensure that expired polio drops are not administered into children.
SARA SHAH
Lahore
'Parking lot'
One of the top cellular telephone companies in the capital city has converted a busy service lane along Jinnah Avenue into a personal parking lot which is properly manned by its guards. I request the relevant authorities to remove this encroachment.