IMF: bail-outs or death-blows on March 28, 2021According to Press Release No. 21/83, issued by International Monetary Fund (IMF) on March 24, 2021, “its Executive Board completed the “combined second through fifth reviews of the Extended Arrangement under the Extended Fund Facility (EFF) for Pakistan, allowing for an immediate purchase equivalent to about US$500 million for budget support”. The IMF programme is, […]
FBR and tax-defiant political parties on March 21, 2021It is shocking that only two political parties filed income tax returns for tax year 2020 out of 27 registered with FBR and 127 with Election Commission of Pakistan despite section 114(1)(ac) of the Income Tax Ordinance, 2001 makes it mandatory. How can we expect rule of law in Pakistan, when 125 political parties are […]
FATF: FBR’s challenges on March 14, 2021In June 2021, Pakistan is going to face yet another review of its remaining compliance of three action items, out of total 27 under anti-money laundering and combatting financing of terrorism [AML-CFT] mandates agreed with Financial Action Task Force (FATF) in June 2018. After remaining unsuccessful in last review of FATF, according to a […]
Elections, corruption & voters on March 7, 2021“The usefulness and the mandate of….an elected body under the Constitution have been defeated by continuous and widespread corruption including misapplication of public funds and `horse-trading’, change of loyalties in violation of law by the holders of representative offices for political and personal gains, by the functionaries of the Government, local and statutory authorities functioning […]
Governing badly, expecting miracles! on February 28, 2021As two-thirds of the tax collected is in the form of indirect taxes and one-fourth of the entire amount comes from petroleum and petroleum products at various stages (which is passed on to consumers), the overall incidence is regressive— Ishrat Husain, Governing the Ungovernable: Institutional Reforms for Democratic Governance (2018). Dr. Ishrat Husain, Advisor to […]
FBR, taxpayers & rule of law on February 21, 2021In the recent months, the Federal Board of Revenue (FBR) under the present team not only exceeded the budget for the first seven months of the current fiscal year, but has also taken many initiatives that need to be acknowledged and highlighted. FBR is trying its best to restore citizens’ faith in it that was […]
Tax policy & development strategy on February 14, 2021Somebody needs to tell the Prime Minister that the iniquitous prescription of the IMF calling for more taxes, austerity and high interest rates will not solve our problems—Reforms without research[Huzaima & Ikram, 2020] This is the last in the series of “tax proposals” sought by the Federal Board of Revenue (FBR) as discussed in FBR: […]
Fiscal reforms agenda on February 7, 2021The Government of Pakistan Tehreek-i-Insaf (PTI), contrary to its election promises, after coming into power, has failed to undertake all-out reforms to restructure the oppressive, outdated and anti-growth taxation, reduce wasteful expenses, promote businesses by reducing cost and concentrating on ease of doing businesses, get rid of loss-bearing state owned enterprises, overcome circular debt and […]
Paradigm shift in tax policy on January 31, 2021‘The impact of economic growth on the lives of people is partly a matter of income distribution, but it also depends greatly on the use that is made of the public revenue generated by economic expansion‘—An uncertain glory-‐India and its contradictions by Jean Dreze and Amartya Sen Achievement of the cherished goal of self-reliance is […]
FBR: Unconstitutional “legislator” on January 24, 2021In the last week’s column, it was promised that till February 15, 2021, deadline set by the Federal Board of Revenue (FBR), for seekingproposals from all stakeholders, some concrete measures will be suggested rather than “meaningless amendments in tax codes, imposing moreobligations on citizens as withholding tax agents,with no policy shift and administrative reforms”. Today’s […]