| June 27, 2006 | Tuesday | Jumadi-ul-Awwal 30, 1427 |
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Apex court judgment on PS
Monsoon emergency
Musharraf’s option
Road network
Cellphone snatching
What is a corrupt practice?
Utility bills’ payment
15 pc CED on foreign travel
Security for army officers
Air travel facilities
Hand on heart
IT IS appalling to note the way the Central Board of Revenue is hell-bent on milking existing taxpayers under various excuses, be it taxation on gross salary, CED on foreign travel or the zillion other taxes. And now through an amendment to the finance bill that defines ‘urban areas’ will be used to charge capital value tax on property transfer.
Given below is how I am expected to suffer this year:
1. Because of the new taxation structure under the gross salary regime, I am expected to pay seven per cent more as direct tax during FY07 compared to FY06.
2. Any plans for a trip abroad have come under a major question mark, as now I have to pay 15 per cent more because of the CED on foreign travel.
Also worth noting is the definition of ‘urban areas’ in the finance bill. According to reports, an ‘urban area’ means the area falling within the limits of the Islamabad Capital Territory; a cantonment board; a municipal body while in case of Karachi, area up to 40 kilometres from the outer limit of municipal or cantonment limit.
Now this is an interesting definition. Karachi has numerous rural areas like Malir and Gadap where a number of farming activities are taking place. An area of 40km from the outer limits of one of the largest cantonment areas of Karachi, Malir Cantonment, stretches to the boundaries of Karachi. So does this mean that by this definition the whole of Karachi is an urban area? That is quite unfair.
It may be noted that when the CVT on property transfers was introduced, it was welcomed as property more than 500 square yards was being charged at two per cent of the declared value of the property. However, it is unfortunate to note that now flats and apartments of 1,500 square feet and above have also been included in this regime. Again, a common man has been targeted with this enactment.
Comparatively, an area of 1,500 square feet is equivalent to an area of 170 square yards only. Can anyone ask the CBR how 500 square yards and 1,500 square feet can be of equal value and how they can be taxed at the same rate?
Apart from the above-mentioned taxes, I also pay an indeterminate amount as sales tax on purchases. Give me a break, please, and do not break me.
ALI WAHAB
Karachi
HATS off to the Supreme Court for declaring the sale of Pakistan Steel null and void. The whole nation was shocked to learn that the Pakistan Steel corporation, whose 75 per cent shares were estimated to be worth around $1 billion, was sold for less than the price of the two Boeing 777 that PIA recently purchased.
Many interesting facts were revealed during the case. It was interesting, for instance, that the evaluation of Pakistan Steel Mills was conducted on behalf of the privatization commission by M/s Global City Marketing (pvt.) Ltd, a subsidiary of Citibank and Arif Habib Securities — the latter just happened to be a buyer of the plant.
There was a conflict of interest and one wonders why the government, knowing very well that Arif Habib Securities was the bidder for Pakistan Steel, allowed M/s Global to evaluate the land.
The fact that the price of land was valued at least 10 times less than its market value is a prima facie proof that the land was valued keeping in mind the interest of Arif Habib Securities
The deal was also in contravention of the Constitution and the prevailing laws of the country. The privatisation of Steel Mills was processed without constituting the Council of Common Interest. The Russian consortium which was given permission to participate in the bidding process, and which ultimately purchased along with two other consortiums, was not even registered or incorporated in Pakistan.
Furthermore, the privatisation commission ordinance provides that the privatisation commission will send its report to the cabinet committee after accepting the highest bid. However, in this case the commission sent a summary before the committee for approval before the actual bidding.
The actual contract for handing over the Steel Mill was silent about various terms and conditions. It did not clarify the status of the land. The government claimed that there was ‘complete understanding’ between the purchaser of the mills and the government that the land would not be used for any other purpose.
One wonders as to why everything was left to mere understanding and on written in black and white. It was because of this ‘complete understanding’ between the purchasers and the government that had raised the suspicion of people at large. The whole deal was considered the biggest scam in the history of Pakistan.
The court had only confined itself to the sale of Pakistan Steel, though the entire privatisation policy needs to be reviewed by it as this is against the principles of policy laid down in the Constitution. The basis of privatisation is that it is not the responsibility of the state to enter into the business of business.
This means that the government is severing itself from the responsibility of providing employment to the people, whereas the ‘right to life’ as enshrined in the Constitution provides for basic necessities to be given to each and every individual. The privatisation policy needs to be debated in the parliament and, if approved, it should be incorporated in a statute.
ANIL KHAN LUNI
Lahore
THIS is with reference to the Karachi city nazim’s directives as reported in “Monsoon emergency: city government sets up four zonal offices” (Dawn, June 21) and other claims that comprehensive plans have been prepared to combat any exigency created by the expected monsoon rain.
I am a resident of Bath Island which is considered to be one of the few ‘fortunate’ localities, having once upon a time better social services such as sanitation.
However, now the scenario has changed. The roads are a shambles; dug up long ago for laying different utility connections, they have been forgotten and have developed big potholes enough to break the tie-rod of a vehicle. Even a double main road opposite the Bridge Store, which was dug a month ago, has been left uncovered. This can become the cause of a serious accident, if not attended to before expected rains.
Sanitation is at its worst. First, for the last few years this island of tranquillity has been under severe attack of builders’ mafia. Despite ban of construction over two storeys, multi-storeyed buildings have been built; as a result, not only congestion on the roads has increased but with no proper refuse disposal every street is littered, creating foul smell in the once air rich of fragrance.
For the last few months, the municipal trucks that used to collect garbage are no more visiting the site regularly. Instead it has been left to the scavengers and sweepers to burn the refuse in the early morning which creates serious health problems for the residents. The most serious issue is the condition of the main drain leading towards the sea, i.e., Naher-i-Khayam, which is choked with polythene bags, and even light normal rainfall can create havoc by inundating the entire area with sewerage water.
I would request the relevant authorities to take notice of the worsening situation of this area immediately so that the looming monsoon season can pass without causing any damage.
MANSOORUL HAQ SOLANGI
Karachi
THIS refers to Brig (retd) A.R. Siddiqi’s letter ‘Musharraf’s option’ (June 16). Brig Siddiqi says that the appointment of Gen Musa as army chief was “one of the wisest acts of Gen Mohammad Ayub Khan…”. Is this merely because it helped Ayub to prolong his one-man show?
Ayub felt threatened by his own generals as they (including Musa) started painting a doomsday scenario and disagreed with him openly.
Gen Musharraf’s dilemma is political and moral, not military. He has seen to it that the next general after him is at least 10 years his junior. The uniform issue has gone beyond the realm of legality and the Constitution.
Even if Gen Musharraf accepts Brig. Siddiqi’s stunning and outlandish advice, neither his problems nor that of the country, accumulated over the last seven years, are going to go away.
On Oct 12, 1999 Gen. Musharraf had the tacit support of the nation, but after international mandate he lost his local mooring. He then lost the moral edge when he went back on his word of shedding his uniform. Now his intention of getting re-elected through the ‘outgoing assemblies’ is a crude attempt at continuing, no matter what the cost.
We are still searching for the battles that Ayub won to appropriate the marshal’s baton. What war victories should we invent for Musharraf in order to bestow this same honour on him? Unless, Brig. Siddiqi has Kargil in mind?
ASLAM MINHAS
Karachi
THE government’s efforts to link interior towns and villages with major cities is a policy in the right direction. However, planners should have kept the pace of constructing roads on par with industrial growth.
We have roads but their utility, with regard to industrial needs, is limited. For example, on the Islamabad-Lahore motorway planners failed to provide link roads en route. There are only four exits that connect major towns and cities, otherwise the entire route is cordoned off by barbed wire on either side.
Only a very reliable and mechanically fit vehicle can undertake journey as there are no outlets for a breakdown if assistance is required. If one considers the traffic ratio of vehicles using this motorway and the maintenance cost, you find that the venture is not economical. Our planners should go slow on road construction and divert their resources to the following areas:
Housing projects: Houses for the poor. Every government has been promising ‘roti, kapra aur makan’. We desperately need to build houses for the poor.
Poverty alleviation: Our planners are ‘paper tigers’. We can plan schemes on paper but we are not good executioners. Most of the schemes fail to take off as the will to execute is lacking.
LT-COL (r) M. AFZAL SADIQ
Attock
INCIDENTS of cellphone snatching at gunpoint are increasing day by day. An average 70 to 80 cellphones are stolen every day in Karachi alone. In most cases the perpetrators kill their victims on resistance. In many cases while snatching cellphones the perpetrators also snatch cash and other valuables from their victims.
Cellphone snatching can be reduced by taking certain precautions.
* Do not carry an expensive cellphone so that if at all it is snatched, the loss of money spent on it will be less.
* Always carry your cellphone in a way that it is not visible to the people and put it on vibration instead of bell or buzzer so that it does not indicate presence of cellphone with you.
- Avoid attending calls on your cellphone if you are passing through or are in an area suspected to be unsafe. You can however respond to the caller once you are out of that area.
- Avoid using your cellphone while travelling in the car and always keep the doors of your car locked and windows rolled up. You are most vulnerable to cellphone snatchers and robbers while at an intersection.
- Do not carry more cash than it is necessary. Keep between Rs500 and Rs1000 in your purse and the rest should be carried hidden with you in some other way so that if your purse is also snatched, the entire money is not taken away.
- Do not carry more than one credit card in your purse. Keep the remaining credit cards, ATM cards including their pin codes, your NIC and driving licence separately hidden with you in some way.
- If you are confronted with a cellphone snatcher / criminal remain calm and try to look confident. Do not quarrel or try to resist and let him take what he wants from you, but do not volunteer to give him anything.
- If your cellphone is snatched, inform immediately the company which provided the connection to your cellphone to block the SIM and lodge an FIR with the nearest police station. Remember you can be caught and prosecuted if the police intercept conversation by a terrorist or criminal on your cellphone number.
Lastly, the police in plain clothes should hunt down cellphone snatchers. This will prove as a great deterrence for cellphone snatchers as well as other street criminals.
SQN.LDR (retd)
S. AUSAF HUSAIN
Karachi
I SAW a debate on a private TV channel in which three women parliamentarians participated. An accuser charged an opposition parliamentarian of obtaining favour from the government and then speaking against the budget.
I was surprised that a serious accusation has being made against an outspoken opposition parliamentarian because her spouse got a licence to operate a bank. As an impartial, non-political Pakistani, I see nothing wrong in this for the licence was apparently given on merit and if it can be proved otherwise, then the licensing authority need to be blamed.
Going by what one learnt from the TV discussion, the person who obtained the licence is an experienced banker and surely must have met all the stipulated conditions for obtaining this licence. One sees nothing wrong if a spouse validly and legally obtains this licence, particularly when the wife has the courage of conviction to speak against the policies of the government.
This debate is frivolous and childish for surely the people of Pakistan know the difference between a corrupt practice and genuine entitlement to do genuine business.
MAHER ALAVI
Karachi
THE Supreme Court of Pakistan, taking suo motu notice of the long queues of the consumers to pay their utility bills at the city banks and their branches, directed the State Bank of Pakistan to ensure that the scheduled and private banks and their branches accept all the utility bills and also provide sunshade and cool water to the people lined up in queues.
In Block 17, Gulistan-i-Jauhar, Karachi, the KASB Bank and Bank Al-Habib are operating one branch each. In Block-18, which is across the road, there is a branch of Habib Bank, which is housed in two rented shops. In spite of the problem of space it provides good banking service and also accepting all utility bills.
Faysal Bank has also recently opened its branch nearby. But as the nearby advertising reveals, it is going to put more emphasis on car-leasing and other banking facilities, but are not going to accept any utility bills. This is very disappointing to the residents of the area.
The refusal of the branches of KASB Bank, Bank Al-Habib, and Faysal Bank shows not only contempt of the Supreme Court directive but also disregard to the directive of the State Bank of Pakistan. The authorities concerned are requested to see to it that all the aforesaid branches of the private banks start taking utility bills.
It is also requested that the National Bank of Pakistan open a branch in Block 17 or 18 of Gulistan-i- Jauhar, which has become a hub of commercial activities.
M. SHAFIQUE AHMED
Karachi
I JOIN Mr Ali Wahab (June 17) on the above subject, and endorse his views forcefully. I fail to understand the logic to punish poor workers, businessmen and people like me, who are senior citizens living on their pension.
A large number of young men and women of Pakistan origin have settled abroad and their parents, for instance one like me, long to visit them and their grandchildren.
I protest in the strongest terms and condemn the CBR recommendation to impose 15 per cent CED on foreign travel. This tax is unfair and unjust, as this will discourage people from travelling abroad and expatriates as well as other visitors (tourists) who come to this country and bring foreign exchange to spend here. This will stop the much-needed foreign exchange and also lose goodwill.
In the light of the above arguments, I request the prime minister/finance minister to reject the CBR recommendation.
MUZAFFAR ALI
Lahore
ON my way back from picking my father up at the airport, we heard some police sirens indicating that some VIP was on the move. We moved from the main lane to the second to give them way because they were really in a hurry. When the motorcade overtook us, we found out that it was neither the president nor the prime minister but a two-star general being escorted by three army jeeps, each containing four to five soldiers with guns.
I was amazed to see this because I wonder what would happen if we had a war with India, and this general had to lead the command in the battle zone.
Would he go there with all this security around him? If the general needs so much security in cities like Islamabad and Rawalpindi, what will he do in a war?
I have a solution for this problem. The solution is that we should bring up another army to protect each and every individual of this army. If we assure them that they would not be harmed in war, then they might go to war if it happens and if that fails too, then of course we civilians are always there to fight for this unfortunate country.
MASOOD KHAN
Islamabad
I WOULD like to draw the attention of the authorities concerned in the CAA and PIA towards the need for air travel facilities for thousands of people in Hyderabad and adjoining areas.
The present aerodrome is not only too small to handle a big aircraft, the number of flights of small aircraft is also inadequate to meet the demands of thousands of people who can afford the travel.
People intending to fly from here to other parts of the country have to reach Karachi first to avail themselves of this facility. In this way, much valuable time is wasted before they reach their destination.
RASHID DAR
Tando Jam
I WAS perturbed to hear on a private TV channel that an official residence is to be built for the speaker of the National Assembly at a cost of Rs90 million. This is probably the cruellest joke played on the poor people, who are dying because of malnutrition and, according to a UNDP report, only 15 per cent of our population has access to clean drinking water.
May I ask the speaker to keep his hand on heart and say how he can justify living in an official residence worth Rs90 million when millions are homeless? Can the president or the prime minister convince the honourable speaker not to take such a callous step?
BLEEDING HEART
Islamabad
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