Who Owns Pakistan - Yimg

Capital Gain Tax
As is evident from the nomenclature, the capital gain tax is payable by people
making capital out of certain transactions. Thus if a plot is bought for Rs 10 lakh
and sold for Rs 15 lakh then the gain of Rs 5 lakh is liable to capital gain tax.
Same holds true about transactions on stock exchange. An exemption on Capital
Gain Tax was introduced in 1975 which has remained enforced till todate.
More billionaires were made in Pakistan's bubble economy during 1990-93 on
Karachi Stock Exchange than ever before but their gain remained untaxed
because there was no capital gain tax. Similarly the real estate boom also went
untaxed because of the same reason.
Estate Duty
Estate Duty was enforced in 1950 under the Estate Duty Act, 1950 on the market
value of all moveable / immovable property of a deceased person passing on to
his heirs. It was charged on the property of the deceased after deducting debts
and encumbrances legally allowable from such taxable properties. The duty was
meant to prevente the rich from getting richer but it was abolished in 1979
without any convincing reason and rationale. The decision was believed to be
politically motivated as the property-owning classes wielded influences on the
government of the day.
The Gift Tax
The Gift Tax Act, 1963 was designed to prevent avoidance of tax on income and
assets by transferring them through gifts and envisaged that gift exceeding Rs
0.5 million made to sons, daughters, father and mother would be liable to tax.
However this tax too was abolished in 1985.
Thus all the rich-persons related taxes have been abolished or made ineffective
through seried of exemptions and concessions and burden of indirect taxes on
common men has been increased.
How Corporate Law Authority (CLA) Helps Them?
One of the best piece of legislation emerging out of the 90 days of caretaker
Prime Minister Moeen Qureshi was Companies (Amendment) Ordinance 1993,
limiting the aggregate investment in associated companies, to not exceeding 30
percent of the equity of the lending company, with prior approval of at least 60%
of the total shareholder.
The law was importent because it sought to put an end to a corporate practices
that had been instrumental in the concentration of wealth in few hands. In fact
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