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Checking black economy

June 05, 2012

ALL over the world, where there is a documented economy, the onus is on an individual to provide justification for his/her assets, bank balance, sources of income, etc, on the basis of declared tax returns, wealth statements, etc.

Unfortunately in Pakistan it is the state which has to prove that an individual or a business group is involved in tax evasion or corruption, etc.

White-collar crime is the most difficult to prove even by the state before a court of law. The whole bureaucracy of this state is involved in this conspiracy to deprive the state of taxes and instead promte black economy.

There has never been an instance where the Federal Bureau of Revenue has provided privileges to those who pay taxes, nor has our National Assembly or Senate passed legislation for such purposes.

Instead what we hear is that every government during its tenure comes up with a scheme that provides attractive rewards with minimal taxation for those eager to launder their black money. The most recent is the ordinance issued by president for yet another money laundering project.

No wonder the government’s own NAB chairman has stated that there is daily pilfering and corruption to the tune of Rs5 billion. It has become a joke in this country that once people enter public life, they instantly win crores of rupees in prize bonds.

The system is so geared to facilitate black economy and protect the powerful corrupt elite and criminals of this country. If an individual declared his total assets in the range of Rs 6.2 million in 2007, how come in just four years the assets of his family jump astronomically and the various villas that he or his family owns have been gifted by his well-wishers with no strings attached.