Who Owns Pakistan - Yimg
Who Owns Pakistan - Yimg
Who Owns Pakistan - Yimg
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C) Operating charges of new storages constructed under government directives.<br />
An estimated Rs 35 billion is expected to be collected by Development<br />
Surcharge on oil and gas during 1997-98. Meraj Khalid govt had estimated that<br />
price equalization fund alone was costing Rs 13 billion to the govt and therefore<br />
announced a time-frame for removal of freight equalization subsidy. The decision<br />
has been shelved and an eyewash of the former scheme is on the anvil under<br />
which petrol pump owners will be supplied petroleum products at ex-factory<br />
prices.<br />
Capital Value Tax (CVT)<br />
It was introduced in 1989 on transfer and sale of certain assets. CVT is payable<br />
when a property or an asset is acquired by individuals or companies. It was<br />
leviable on plots sold and alloted by develoment authorities, new and used motor<br />
cars and on urban property. The scope of CVT was expanded in 1996-97 budget,<br />
by levying it on air-tickets for foreign travel. It is charged at rate of 2.5% on<br />
immovable property, 1.5% on air tickets, at 1.5% on up to five year cars and 3.75<br />
to 7.5% on 800-1600 cc cars.<br />
Taxes for Rich<br />
While politicians and bureaucrats talk in concert about the evasion of income tax<br />
they seldom raise hue and cry about the evasion and exemptions in taxes which<br />
are meant to serve a dual purpose raising public revenue and improving vertical<br />
equity. The wealth Tax, Capital Gain Tax, Estate Duty and Gift tax were all<br />
designed as leveler of wealth to prevent the rich from getting richer but over the<br />
years, their effectiveness has been eroded through exemption or they have been<br />
abolished altogether, without any qualms.<br />
Wealth Tax<br />
This tax was introduced in 1963 and was payable by individuals, partnership<br />
firms, association of persons and private limited companies but public limited<br />
companies and state enterprises were exempted. Section five of the wealth tax<br />
act exempted agricultural land from payment of wealth tax but 1977 budget<br />
required payment of wealth tax by people having other income also.<br />
Many countries have abolished wealth tax in favor of a progressive taxation<br />
system and in <strong>Pakistan</strong> also there has been a demand for abolition of wealth tax<br />
on the ground that it helps create black money. The biggest argument against the<br />
tax was that yields from wealth tax are not worth the hassle and administrative<br />
machinery assigned to collect it. The wealth tax is also used by the tax evader to<br />
camouflage their tax liability, since the amount paid as wealth tax is deducted<br />
from the total income earned, to determine the total income tax liability. (also see<br />
Robber Barons of <strong>Pakistan</strong>).<br />
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