Opinion New tax on the block
After the flood relief tax and special excise duty on non-essential and luxury goods,comes the reformed general sales tax,or RGST,needed for Pakistan to receive the second tranche of a loan from IMF.
New tax on the block
After the flood relief tax and special excise duty on non-essential and luxury goods,comes the reformed general sales tax,or RGST,needed for Pakistan to receive the second tranche of a loan from IMF. Pakistans parties stand divided over the issue. The PPPs coalition partner both in the central and Sindh governments,the MQM,opposes the RGST. The Nation reported on November 15: Altaf Hussain has made it clear that MQM will not be part of any step that goes against the interest of the people of the country. The PPPs other coalition partner in the federal and Khyber-Pukhtunkhwa governments,the Awami National Party,is also undecided about the RGST. Dawn quoted the partys president,Asfandyar Wali Khan,as saying that it had constituted a committee to review the bill before deciding. However,Khan was quoted by The News on November 14 as saying that the tax-base needed to be broadened,but those already taxed must not be burdened with new taxes.
As the ruling PPP tabled the bill in parliament,Dawn reported on November 16: PML-N chief Nawaz Sharif is reported to have asked Punjab CM Shahbaz Sharif not to support… the RGST. PML-N sources said following PM Yousaf Raza Gilanis statements that Shahbaz Sharif had given an undertaking to the federal government… that the Punjab government would cooperate in the imposition of RGST,Nawaz Sharif summoned his younger brother to Raiwind… and sought a clarification. The sources quoted Shahbaz Sharif as saying that he had agreed in principle… He was also quoted as saying the cooperation would enable Punjab to get financial concessions from the Centre. But… Nawaz Sharif was not convinced and he directed his younger brother not to lend support to the anti-people measure because,in his opinion,its political cost would nullify the financial concessions Punjab was expecting from the federation.
Daily Times reported on November 17 that the PML(Q) is willing to extend conditional support to the PPP on the new tax as it doesnt want the government to fall at a time when its allies and opposition are trying to destabilise it.
Getting peoples goats
Prices of sacrificial animals created news on Eid-ul-Azha. Daily Times reported on November 17: Most of Pakistans Muslims will be unable to join in Eid celebrations with the traditional animal sacrifice this week,as cattle prices have more than doubled in the wake of the countrys fatal floods. Dawn added: the average price of a goat has climbed to Rs 21,000… Traders were reportedly complaining that we have bought the animals but nobody is buying… Another side to the story was reported by Dawn: But another market trader,Jalil Khan,was not convinced the floods were the cause of the problem,saying: A large number of animals are being smuggled to Afghanistan. Cattle fetch even higher prices in the neighbouring war-torn country,where livestock is in short supply all year round.
Power induction
Pakistans troubled electricity-generation sector got a shot in the arm,reported Dawn on November 18. A Turkish ship carrying a rental power plant,as per an agreement with the government of Pakistan,anchored at berth number 4 of Karachis port on Thursday. The ship,which sailed from Tuzla port in Turkey and brought a rented power plant with a 232-megawatt capacity,will further shift the plant to the Korangi thermal power plant on November 20.
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