Who Owns Pakistan - Yimg

First budget by Zia ul Haq in 1978 provided a 5-years tax holiday for industries
set up between March 1, 1977-June 1983 in Baluchistan, certain parts of NWFP
and approved industrial estates in NWFP, Punjab and Sindh.
1983-84 budget extended " all these facilities for another period of five years" i.e
up to June 1988. In 1988 Benazir came to power and she announced exemption
to all industries set up in the rural areas.
In 1990 Nawaz Sharif came into power and " all industries set up throughout
Pakistan between December 1990 and June 30, 1995 were given tax holiday for
three years". He also announced a tax holiday of 8 years for all industries
proposed to be located in NWFP, Baluchistan (Except Hub), Federally
Administered tribal areas (FATA), Azad Kashmir, Division of Dera Ghazi Khan
and Bahawalpur in Punjab and Sakkur and Larkana in Sindh, between December
1, 1990-June 1995.
Thus tax holidays that was first introduced for two years in 1959 has lasted for 26
years. The number of industrial estates enjoying tax holidays and exemptions
already numbered 44 and the concept of SIZ was simply another effort of
keeping the industrialists hooked on exemptions. It was old wine in new
bottles.
The Rebate, Duties Bonanza
The misuse of rebates and duty drawback scheme has emerged as one of the
most frequent and remunerative white collar crime in Pakistan during recent
years as is evident from the proliferation of stories in newspapers about frauds
involving customs officials, exporters and business houses. This facility has also
been exploited by political heavy weights with immunity to reap large windfall
gains simply by getting the right SRO issued by CBR.
" The system of duty drawbask on exported goods is thoroughly corrupt" under
which govt ends up paying more than the amount of taxes collected. Tariq Saigol
observed in an interview with Friday Times issue of April 6, 1995.
No consolidated account is available of the rebates and refunds made annually
by the CBR in the CBR year book, Economic Survey or any other budgetary
publication and the figures of revenue collection periodically released by CBR
give only an estimate of net revenue receipts. Gross revenue receipts are never
mentioned. An estimated 10-12% of the annual gross tax receipts are currently
being refunded by the CBR by way of duty drawbacks and rebates to the
exporters and manufacturers. The figure is expected to go up astronomically in
1998, since second Nawaz Sharif govt has increased the use of duty drawbacks
as a measure to boost exports. The trade policy for 1997-98 has envisaged host
of incentives for boosting export of engineering goods and it provided that " the
duty drawback rate of engineering industry will include all inputs including fuel
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