Pak Elections 2013 – 3 Items MQM, PTI and Qadri

People will not accept ‘danda-bardar shariat’: Altaf

KARACHI: MQM Chief Altaf Hussain has said on Saturday that Taliban want to discourage people from participating in the election gatherings of Muttahida Qaumi Movement (MQM), Pakistan People’s Party (PPP) and Awami National Party (ANP) but people of the country will not accept ‘danda bardar shariat’. The MQM chief was addressing a public gathering in Nawabshah via a telephone from London In a telephonic address from London, while speaking to a public gathering in Nawabshah, Hussain said that Islam is a religion of peace and it prohibits forced implementation. The MQM will form the next government in Sindh, and attacks on party offices and election gatherings are a conspiracy to keep progressive forces out of the election process. He said that a smooth election campaign could only be witnessed in Punjab. Meanwhile, the MQM’s Coordination Committee on Saturday categorically stated that the party will not boycott election despite conspiracies. In a telephonic conversation with the party chief, the Coordination committee members said that despite attacks on workers and leaders, morale of MQM workers was high and they would not surrender before terrorists. staff reporthttp://www.dailytimes.com.pk/default.asp?page=20134\28\story_28-4-2013_pg12_5

ECP takes notice of Imran’s speech

ISLAMABAD: The Election Commission of Pakistan (ECP) on Saturday took notice of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan’s “personal attack” on the Pakistan Muslim League-Nawaz (PML-N).

Earlier, Imran Khan had addressed a rally in Bahawalpur, where he used words for Nawaz Sharif that the ECP found objectionable.The entire speech will be put before ECP chief Fakhruddin G Ebrahim in a meeting on Tuesday, where it will be evaluated whether the speech contained offensive remarks. On Friday, the ECP issued a notification prohibiting political parties and their candidates from launching personal attacks against their opponents.

With the election campaigns in full swing and parties holding rallies, candidates were seen criticising each other and often resorting to name-calling and rhetoric that could be construed as slander. online
http://www.dailytimes.com.pk/default.asp?page=20134\28\story_28-4-2013_pg7_2


Qadri tells ‘followers’ to boycott election 

LAHORE: Minhajul Quran International (MQI) head Dr Tahirul Qadri has resumed his pseudo-politics from Canada, advising his followers-cum-voters to boycott the May 11 election for the sake of ‘saving’ the state.

Qadri, who is living in Canada nowadays, is likely to revisit Pakistan on May 5 to convince Pakistanis to stay away from the electoral process and hold sit-in protests outside all election commission offices across the country.

With this agenda, the MQI has started distributing hundred of thousands of leaflets among the masses, in which people have been urged not to take part in election, as it could not bring any change in society.

The leaflets, available with Daily Times, urge the masses to refrain from casting their votes on May 11, and participate in the MQI’s sit-ins outside the local election commission offices in their respective areas.

In the leaflets, Qadri has suggested his followers, who are already listed in the electoral rolls, to stand united against the “existing corrupt system”.

In one of the two leaflets, he has declared the upcoming election “engineered” and “rigged”, and asked the people not to vote for fake-degree holders, tax evaders and loan defaulters who had been permitted to contest elections.

The MQI started its anti-election door-to-door campaign from its headquarters in Lahore – Model Town – and its volunteers are distributing the leaflets in each and every house of the area.

When this scribe asked the locals about their views on the distribution of such pamphlets, most of them expressed less confidence in the slogans of Dr Tahirul Qadri, and said that he had left them in the middle of no-where during his last call to the people for saving the state just a few months ago.

They were also in doubt about the hidden agenda of Qadri’s appearance in the country just six days before the polling day and the slogan of boycotting the election when all political parties are admiring it as a positive step towards strengthening democracy in Pakistan.
http://www.dailytimes.com.pk/default.asp?page=20134\28\story_28-4-2013_pg7_3

 

 

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Copy of email I received to Rally with PTI on Friday.

  • Insaf Rally in Support of Imran Khan Friday 03rd May, 2013 between 02:00PM-02:30PM‏

From: waqas.bashir@gmail.com on behalf of PTI New South Wales (pti.nsw@insaf.pk)
Sent: Friday, 26 April 2013 10:47:10 AM
To: pti.nsw@insaf.pk
Dear Insafian Asalam-o-Alikum,

You all know that the movement for justice is now in very critical time and we need to act with agility to achieve our targets and act for the great cause.

PTI NSW is going to organise a rally in support of Imran Khan. Following is the detail:-

Date: Friday 03rd May, 2013
Time: 02:00PM-02:30PM
Location: 32 Martin Place, Sydney CBD, NSW 2000 (Pakistani Consulate Sydney)

The Objectives of the Rally

  1. To register our protest about not giving voting rights to overseas Pakistanis
  2. To support Imran Khan and PTI in upcoming election-2013
  3. To spread this message to all Pakistanis living in Australia

How To Achieve These Objectives

  1. To get attention of the local commercial and community media so that our message is well received in Australia, Pakistan and abroad.
  2. To record our protest in Pakistani High Commissioner Office.
  3. Maximise the attendance of Pakistanis to show support for Imran Khan

Instruments of the Rally

  1. Play cards: PTI NSW will provide slogans written on play cards.
  2. Flags: PTI NSW will provide Pakistani & PTI Flags (please feel free to bring your own if you can).
  3. IK Pictures: PTI NSW will provide these pictures (please feel free to bring your own if you can).
  4. PTI Naya Pakistan Shirts: All participants of the rally are encouraged to wear the Naya Pakistan shirt. Please contact Imran Mirza (email:mirza.imran@gmail.com, Mob:0418241710) if you want to buy these shirts.

Please come along with your friends and family. Kindly don’t hesitate to ask if you need any further detail. Thanks.

Yours Sincerely,
PTI Australia NSW Chapter
S: pti.nsw.australia

Note: If you are not interested in receiving such email notifications from PTI Australia NSW then please let us know. Thanks.

Monsoon Photos

The term was first used in English in British India (now India, Bangladesh and Pakistan) and neighbouring countries to refer to the big seasonal winds blowing from the Bay of Bengal and Arabian Sea in the southwest bringing heavy rainfall to the area.

MatheranPanoramaPointDrySeason
Indian Western Ghats on May 28 in dry season

MatheranPanoramaPointMonsoon
Indian Western Ghats on August 28 in rainy season

Three months change.

 

 

Life of the Kings – Akbar Son of Tamerlane and Genghis Dyslexic and Din e Ilahi creator

The Mughal dynasty in India was Muslim and was founded by Babur / Babar (1483-1530), a Turkic conqueror from Central Asia. Babar was a descendant of Tamerlane (1336 -1405), the Turkic conqueror, by his father, and a descendant of Genghis Khan (1162-1227) by his mother.Babar is derived from the Persian word “babr” which means “tiger” .

Who was Akbar (1542-1605)?

He was the emperor of the Mughal Empire from 1556-1605.His name “akbar” means “great” in Arabic and he is regarded as the greatest Mughal emperor of India.

An illiterate emperor

Like some famous persons in history Akbar was illiterate,like:

1.Siddharta Gautama, the “Buddha” (560-480 BCE)

2.Charlemagne (742-814), King of the Franks in 768 and Emperor from 800-814.

3.Francisco Pizarro (1471-1541), Spanish conqueror of the Inca Empire.

As for Akbar, four tutors tried unsuccessfully to teach him to read. One possible reason is that he was dyslexic.

The conquests of Akbar

In 1556, Akbar succeeded his father Humayun as head of a small Muslim kingdom in northern India. He was 14 years old then and his guardian Bairam Khan ruled in his place. Akbar won the battle of Panipat,which assured the Mughal presence in India.

In 1560 he decided to break free from the tutelage of Bairam Khan and end his regency. The latter did not accept it and he was executed.

Akbar expanded his empire by the conquest of Gujarat in 1573, Bengal in 1576, Sind in 1590, Orissa in 1592 and Baluchistan in 1594. At the death of his brother Hakim, King of Kabul, in 1585, he inherited Kashmir. He then began to conquer parts of southern India.

In the later part of his rule Akbar founded a new religion Din-e-Ilahi in which he vaguely tried to combine practices of Islam and Hinduism.

Islam and USA and Boston bombing

What does Taliban want?

What die hard communists wanted ?
Mad bad education can poision minds. Pashtoon are SELF DESTRUCTIVE. Today’s NORMAL German and Italians and Japan became enemies of West 100 years ago.
In short I say its leaders who educate their people. if President Bush had remained silent on Muslim citizens of USA after 9/11. Mobs would have started killing Muslims in USA. I believe its Governments who make (influence) its people.

Self destructive Taliban or ANY MUSLIM country are all weak and corrupt. Muslims and Muslim countries are never a threat to any European country. USSR (Russia) or CHINA can really damage Europe or Canada or USA or Australia etc. Which Muslim country is NOT already begger of  USA ? Muslim people are so >>exploited<< through religion and Muslim Governments that (sadly) most citizens hate USA.

Mirza Danish Jamal Only ONE Muslim country is out there who is not OFFICIAL friend of USA = Iran. By same logic ordinary Iranian citizens tired of “Muslim” Iranian oorruption may love USA. Oh by the way believe me all Mullahs love to go and live in Kafir West with their families. These Muslim Government supporting fraud Mullahs damage their own Muslim societies with their poison and take same women hating etc poision to West.

Mirza Danish Jamal Another example is Irish IRA. Let me say any outlaw organisation is taken over by lawless people.

U.S. Congress to target non-compliance by U.S. taxpayers using foreign accounts.

U.S. Foreign Account Tax Compliance Act in Full Swing

By Yao Lu, Sondre Solstad and Chet Scheltema

Mar. 7 – The Foreign Account Tax Compliance Act (also known as FATCA), was enacted in 2010 by the U.S. Congress to target non-compliance by U.S. taxpayers using foreign accounts. It requires foreign financial institutions (FFIs) to report to the Internal Revenue Service (IRS) information about financial accounts held by U.S. taxpayers worth more than US$50,000, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.

The most notable feature of FATCA is that it allows a 30 percent withholding tax on the gross amounts of “withholdable payments” made to FFIs and non-financial foreign entities (NFFEs), unless such organizations satisfy certain FATCA requirements.

To meet such requirements, an FFI generally must enter into an FFI Agreement with the IRS by registering online through the “FATCA Registration Portal” and agreeing to carry out certain due diligence, reporting and withholding responsibilities (withholding responsibility occurs where an account holder fails to provide the required information to the financial institution). An NFFE must either certify it does not have any “substantial” U.S. owners, or report the name, address, and tax ID number of each substantial U.S. owner.

“Withholdable payments” under FATCA include:

  • U.S.-sourced interest, dividends, rent, salaries, wages and similar fixed or determinable, annual or periodical (FDAP) payments.
  • Gross proceeds from the disposition of property that can generate U.S-sourced FDAP income.
  • “Foreign pass-thru payments,” the IRS is still considering rules for defining a foreign pass-thru payment.

Impact on Overseas U.S. Residents
The United States is the world’s only industrialized country that taxes on the basis of citizenship rather than on residence or source of income. For Americans living overseas, if the aggregate value of their foreign financial accounts exceeds US$10,000 at any point in time during the tax calendar year, they need to report their personal accounts through the Report of Foreign Bank and Financial Accounts (FBAR).

In addition to the long-standing FBAR form, FATCA has brought in a new IRS filing requirement, called Form 8938. The new form requires taxpayers to provide detailed information on their overseas financial accounts to the IRS, along with their annual income tax returns. U.S. citizens who have foreign financial assets in excess of US$50,000 are obliged to report through Form 8938, while Americans residing overseas only need to report if they:

  • File a return other than a joint return and the total value of the specified foreign assets is more than US$200,000 on the last day of the tax year, or more than US$300,000 at any time during the year.
  • File a joint return and the value of the specified foreign asset is more than US$400,000 on the last day of the tax year or more than US$600,000 at any time during the year.

Failing to report could result in a penalty of US$10,000, and up to US$50,000 (for continued failure after IRS notification). Furthermore, underpayments of taxes attributable to non-disclosed foreign financial assets will be subject to an additional understatement penalty of 40 percent.

“As FATCA begins to be implemented, more taxpayers who have not been compliant will be under pressure to disclose their non-U.S. bank accounts,” comments Philip Stein, president of Philip L. Stein & Associates. “Also of note is that as soon at the foreign banks identify their U.S. customers and pass that information on to the IRS, U.S. taxpayers will no longer have the option of participating in an ‘Overseas Voluntary Disclosure Program.’”

Final Regulations on FATCA
On January 17, 2013, the U.S. Treasury and the IRS issued final regulations under the FATCA (hereinafter referred to as “Final Regulations”), which made a number of important changes to the proposed regulations of FATCA published in February 2012 (hereinafter referred to as ‘Proposed Regulations’).

Specifically:

Grandfathered obligation
Under the FATCA regime, certain obligations are grandfathered and no withholding is required on such obligations. The Proposed Regulations provide that withholding is not required on any payments relating to an obligation outstanding on January 1, 2013. This applicable date has been extended by one year to January 1, 2014 under the Final Regulations.

Investment entities
The Final Regulations have rendered some changes to the “investment entity” – one of the broadest categories of financial institution. These changes are as follows:

  • Providing that certain investment entities may be subject to being reported on by the FFIs with which they hold accounts, rather than being required to register as FFIs and report to the IRS themselves
  • Clarifying the types of passive investment entities that must be identified and reported by FFIs

Preexisting accounts
The Final Regulation defines the “preexisting accounts” as accounts maintained by an FFI prior to January 1, 2014, and such accounts must be reviewed by December 31, 2013. However, the preexisting accounts with a balance or value of US$50,000 or less held by individuals and accounts with a balance or value of US$250,000 or less held by entities are exempted from review.

Gross proceeds withholding
The Final Regulation extends the effective date for withholding on the gross proceeds of sales of assets that produce U.S.-sourced income from 2015 to 2017, but it does not extend the effective date for withholding on U.S.-sourced income that does not constitute gross proceeds, which begins on January 1, 2014.

The Final Regulation also streamlines FFI registration and compliance procedures, and relaxes certain documentation requirements.

Inter-governmental Agreements
Given the fact that there may be certain privacy or banking secrecy requirements under foreign laws that prevent FFIs from reporting to the IRS, the U.S. Treasury has developed two models of inter-governmental agreements (IGAs) to facilitate the implementation of FATCA in a manner that avoids foreign legal impediments – namely the Model 1 Agreement and the Model 2 Agreement.

Under a Model 1 Agreement, FFIs should report information directly to their own governments, and such information will be automatically channeled to the IRS. It should be pointed out, though, that there is a reciprocal and non-reciprocal version of the Model 1 Agreement. The reciprocal version is available only to jurisdictions with which the United States has an income tax treaty or information exchange agreement, and it requires the U.S. government to report account information to foreign jurisdictions. The non-reciprocal version only requires the foreign jurisdiction to provide information to the U.S. government.

Under a Model 2 Agreement, FFIs must register with the IRS and report information regarding their U.S. accounts directly to the IRS, this will require the foreign government to enact a local law that permits the exchange of information with the United States.

IGA with Switzerland
On February 14 this year, the U.S. government scored a big win in its pursuit of American tax evaders as Switzerland has agreed to reveal the information of U.S. account-holders to Washington, although such agreement still needs to be approved by the Swiss Parliament.

The agreement with Switzerland is of particular significance as the IRS and the Justice Department have long been demanding information from Swiss banks (including UBS, Credit Suisse and Wegelin) on U.S. taxpayers with hidden accounts, and it is also the first Model 2 Agreement that has been signed thus far.

Since the United States will start to implement FATCA in January of 2014, Swiss financial institutions will be forced to implement FATCA from this date. Failing to comply could result in exclusion from the U.S. capital market.

“We are pleased that Switzerland has signed a bilateral agreement with us, and we look forward to quickly concluding agreements based on this model with other jurisdictions,” said Acting Secretary of the Treasury Neal S. Wolin in a statement.

So far, the United States has concluded IGAs with seven countries, including Denmark, Ireland, Mexico, Norway, Spain and the United Kingdom. The U.S. Treasury has also noted that besides Switzerland, Japan is also working on a Model 2 Agreement, and is in the midst of IGA negotiations with over 50 additional jurisdictions including the Cayman Islands. Negotiations with China have begun, but have not made any progress.

Key FATCA Dates

Below is a list of certain key dates for FATCA implementation:

October 25, 2013

  • It is expected that the IRS will open FATCA registration for FFIs by July 15, 2013 and for FFIs hoping to avoid becoming subject to FATCA withholding, they must register through the “FATCA Registration Portal” by October 25, 2013

January 1, 2014

  • Withholding on U.S.-sourced FDAP commences
  • Newly-opened accounts will no longer be considered as preexisting accounts
  • New obligations issued after January 1, 2014 will no longer be treated as grandfathered obligations

March 31, 2015

  • Filing of FATCA Information Reports begins. The first deadline for “participating FFIs” to file information reports with the IRS is March 31, 2015

January 1, 2017

  • Gross proceeds withholding begins
  • Earliest date that the withholding on “foreign pass-thru payments” may begin

Controversy Surrounding FATCA
Critics of FATCA point to several problems with the legislation that may eliminate its estimated US$8 billion increase in government revenue. Central to these concerns is the costs on the part of FFIs, as they have to provide extensive documentation to the IRS about their American subjects.

The European Commission has estimated that compliance would cost EU institutions alone US$100 million, and James Broderick, the head of JP Morgan’s European, Middle Eastern and African asset management business, has suggested overall implementation costs could equal the roughly US$8 billion FATCA is expected to raise over the next 10 years.

A report by American Citizens Abroad (ACA) warns that the large cost of observing the legislation could lead many foreign financial institutions to choose to close the accounts of U.S. citizens and sell off U.S. holdings rather than complying. A 2011 survey by KPMG of leading fund promoters found that 6 percent of respondents were intending to do so. Some have suggested that this could cause a larger impact on U.S. government revenue than the money raised by FATCA, as disinvestment deteriorates the state of the overall economy.

The Final Regulations do, however, appear to have taken into account some of these concerns, as efforts to simplify the act have led to what analysts call “favorable changes” in time allotted for reviewing existing accounts, use of existing documentation and the application of FATCA on certain existing obligations.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.

Dezan Shira & Associates’ Manager of Global Business Development for the Beijing office, Mr. Chet Scheltema, will be in the United States this month to speak on doing business in China, and to meet for discussions concerning foreign direct investment into China.

Working with clients primarily from the United States and Europe, Mr. Scheltema advises on corporate structuring, China FDI regulations, China tax compliance, and general business legal matters.

Mr. Scheltema’s U.S. Itinerary:

  • March 13-17th: New York City, New York
  • March 18-20th: San Francisco, California
  • March 21-22nd: Houston & Dallas, Texas
  • March 25-26th: San Diego, California

To arrange a meeting with Mr. Scheltema during his time in the United States, please contact the Manager of our U.S. Liaison Office, Ms. Jessica Tou: jessica.tou@dezshira.com.

You can stay up to date with the latest business and investment trends across Asia by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.

Related Reading

Double Taxation Avoidance Agreements
In this issue of China Briefing Magazine, we look at the evolution of the legal framework of double taxation agreements in China, including the foundations of anti-avoidance, obligations in reporting offshore transactions, how to qualify as a beneficial owner and how to claim treaty benefits. We also outline the interpretations given in Circular 75 of the China-Singapore DTA.

Go America! Why Goldman Sachs thinks the US economy still reigns supreme

Go America! Why Goldman Sachs thinks the US economy still reigns supreme

January 29, 2013 by Xavier Brenner
missamerica1

Since the financial crisis of 2008 and 2009, many have wondered whether the whole mess marked the end of U.S. global economic leadership. There are plenty of reasons many economists and investors take that position: elevated joblessness, stagnant median wages and record budget deficits among them.

Now, a team of Goldman Sachs (GS) analysts are arguing otherwise. A comprehensive Goldman 2013 outlook concludes that, while big fiscal challenges loom, the American economy is still a cut above the rest of the world when it comes to some crucial metrics. The meaning for investors? “US preeminence relative to other economies is the single most important factor underlying our core allocation to US assets.”

Here are 10 reasons the U.S. economy may still have gas in the tank in the decades ahead, according to Goldman’s analysis:

1)  Still No. 1: The U.S. is home to a $15.7 trillion economy, the world’s largest and wealthiest. That’s double the size of China’s annual economic output, 2.5 times that of Japan’s and 4.5 times that of Germany’s.

2)  Stock & Bonds: The U.S. stock market has delivered returns of 129% from March 2009 (the financial crisis nadir) through the end of 2012. American equities outperformed European stocks by 24%, Japanese equities by 97% and emerging market equities by 22% during the same period. U.S. Treasuries had a total return of 18% versus 14% for global developed economy bond markets.

^SPX Chart

^SPX data by YCharts

3)  Land & Water: The U.S. outstrips the rest of the world (save Russia) when it comes to natural resources—energy, water, minerals and so on—on a per capita basis. America has 4.6 times more water resources and 5.3 times more arable land than China.

4)  Energy: The U.S. is on track to become the world’s biggest oil producer by 2020, ahead of Russia and Saudi Arabia, according to the International Energy Agency.

5)  Insourcing Boom: A conga line of U.S. companies—Caterpillar (CAT), Ford (F), General Electric (GE), and General Motors (GM) — have announced plans to shift production back to the U.S. thanks to cheaper energy outlook at home. Boston Consulting Group data cited by Goldman predicts that by 2020 the re-shoring trend will add 2.5 million to 5 million jobs and as much as $55 billion in output to the domestic economy.

6)  Competitiveness: When it comes to economic freedom and ease of doing business international rankings, the U.S. scores best among big economies and in the top 5% among all countries, according to data compiled by the Investment Strategy Group, Heritage Foundation and the Wall Street Journal.

7)  Demographics: The US and India are the only two countries with a growing working age population. Japan, the Eurozone and broader Europe and Russia are heading in the opposite direction. By 2050, the US will have one of the youngest workforces worldwide with a median age of 40.

8)  Military Power: America spends $711 billion (4.5% of gdp) on defense, an amount that exceeds the next 13 countries combined. China spends $143 billion.

9)  Talent Magnet: Nearly 40% of U.S. researchers migrated from other countries, according to a 2012 National Bureau of Economic Research working paper cited by Goldman. Unlike other countries like India, the U.S. retains a bigger share of foreign researchers.

10) R&D Powerhouse: The U.S. generated about 31% of global R&D expenditures in 2012. That’s about $436 billion in spending by government, industry and universities.

Tax free Pakistan

  • totally agree…but why so much aid then…if the tax was distributed correctly by maintaining infrastructure they wouldn’t need so much aid…that’s the whole point of the story!!
  • Mirza Danish Jamal This shows DAMAGE done to ALL Pakistanis by wrong media and Government education. West is RICH and JUST society because their Government TAX and SPEND. West’s Electricity and Gas is very EXPENSIVE and has taxes in ELECTRICITY too. ALL Pakistanis think REASONS not to pay Market rate of Sui Gas and ELECTRICITY. Army knew Dam and Sometimes rivers can give enough ELECTRICITY. People will destroy Zia ul Haq if he stops people from stealing and asks for ELECTRICITY West type RELIABILITY and prices. You can charge and waste Sui Gas as you like because gas GENERATOR import are not like electricity. GENERATORS imported from HIGH TAX countries are needed and FUEL and “free” coal is needed to produce every unit of Electricity. Do not believe newspapers when they say prices are going up. If your population DOUBLES every 25 years FOOD and new ELECTRICITY needs TAXES to help next generation INVESTMENT. Its not Mullah’s job to tell us >>> PAY TAXES<<< for roads and NON-CORRUPT police. Everyone wants to be popular (except me) no one tells THERE is ISLAMIC TAX on every gram of GOLD your women own. Do you pay your religious DUTY ? No ? How could Zia ul Haq or Ayub make us better TAX PAYERS ?
  • Mirza Danish Jamal Really West’s leaders do not WANT MUSLIM countries to become tax paying INDUSTRIALISED countries. Good on UK parliament members to rebel against POLICIES to keep Muslim countries CORRUPT ::
    “….No extra cash for Pakistan without rich paying tax: MPs

    LONDON: Britain should not increase aid to nuclear-armed Pakistan unless Islamabad tries to make its wealthy elite pay more taxes, British lawmakers recommended on Thursday.
    Britain is due to double its assistance to Pakistan to £446 million in 2014-2015, making it the biggest recipient of British aid. But parliament’s International Development Committee said it was unfair for Britain to fund health and education projects unless Pakistan’s new government, due to be elected in May, tackles “rife” corruption and tax evasion.
    “We cannot expect the people in the UK to pay taxes to improve education and health in Pakistan if the Pakistan elite is not paying income tax,” the committee said in a report.
    “Pakistan’s rich do not pay taxes and exhibit little interest in improving conditions and opportunities for Pakistan’s poor.”
    Citing figures from the Pakistan Board of Revenue, the committee said only 0.57 percent of Pakistanis paid income tax last year — and that no one has been prosecuted for income tax fraud for at least 25 years.
    Less than 30 percent of Pakistan’s members of parliament pay tax, it added.
    The committee said there was a “powerful case” for continuing aid to Pakistan, a country with “real poverty and serious security problems” as well as strong links to its former colonial power.
    But it added that past donations have often failed to reach poor Pakistanis because of corruption.
    Asked about the report, a spokesman for the Pakistani foreign ministry said it was “a matter of common knowledge” that “all political circles and non-circles have been emphasising the need to broaden the tax base”.
    But Aizaz Ahmad Chaudhry also told reporters the Pakistani government “would like to focus more on trade and less on aid”.
    Britain’s international development ministry said aid to Pakistan was “predicated on a commitment to economic and tax reform”. “We have made it clear to government and opposition politicians in Pakistan that it is not sustainable for British taxpayers to fund development spend if Pakistan is not building up its own stable tax take,” a spokesman said.
    “Following the election we will make available practical assistance to the incoming government to help deliver reform of the Pakistan tax system and work with the IMF, but tax and economic reform must take place.”
    Foreign aid amounts to 0.7 percent of the UK’s gross national income and is one of only three sectors, alongside health and education, which has been ring fenced as other departments suffer deep cuts to their budgets.
    In 2011-12 Britain’s overseas development spending reached almost 9 billion pounds, including that by the Department for International Development (DFID) and aid delivered bilaterally by other government departments, official statistics show.
    DFID said it will help Pakistan to reform its tax system, but a spokesperson noted UK development assistance in Pakistan is predicated on a commitment to such reforms and to helping lift the poorest out of poverty.
    No comment could be immediately obtained from the Pakistan High Commission in London but High Commissioner Wajid Shamsul Hasan, speaking earlier to the BBC, urged the UK to maintain its aid, adding that net tax collection had increased from one trillion Pakistan rupees (6.72 billion pounds) at the beginning of the century to two trillion by the end of 2012.
    “I would say that they should be paying knowing well what sort of problems we have put into by this 30-year-long war against terrorism in the region,” he said.
    “We have spent $67 billion since 2011 in this war against terror, our infrastructure has been destroyed, our education has been destroyed.”
    Britain, home to a one-million strong Pakistani diaspora, one of the largest in the world, currently gives Pakistan 267 million pounds a year. agencies
    http://dailytimes.com.pk/default.asp?page=201345\story_5-4-2013_pg7_3

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  • Bulleh Abbas anyonr that believes that taxing a people makes a nation stronger is a fool.

    Most modern money is printed from thin air, so to tax people to pay off intrest on money printed from thin air is a crime.

    Central banks are thw modern theifs..

    Moder taxation is enslavment…
  • Mirza Danish Jamal Yes Bullah bhai your THINKING is shared by everyone in Pakistan. I am wrong and you and your Pakistan and its direction is right. Ayub told us Pakistanis that Price Controls and very little CAR and PROPERTY TAXES are Pakistan’s future. So today’s Pakistan at the FEET of USA etc etc and Kafir China’s feet. Saudi oil rich USA cleaned feet. Korea has become RICH recently so LITTLE TAX collected Pakistan on Korea and Kafir IMF’s disaster feet. More Taliban love = Poor Ayub’s created EDUCATION. IDIOTS do not LOOK at UK and USA etc why our “lucky ones” love to LIVE and BRING UP our MUSLIM families in these BIKINI HIGH TAX HIGH SOCIAL SPENDING countries. There is NO oil for Pakistan to be like Middle East.
  • Mirza Danish Jamal I want more opportunities to tell Pakistanis what went wrong for PAKISTANIS since even Ayub . His rent control and lawless tenants and no Tax and Bhutto as minister. Any poor worker or Factory allowed in General’s INDUSTRIALIZATION ? Does today’s Pakis…See More
  • Mirza Danish Jamal Because Mullah does not ask people to pay Government Taxes so Taxes must be wrong !!! So uneducated in ISLAM our Mullah is.
    My Muslims brothers and sisters PLEASE you must pay HEAVY Quran ordered TAXES on GOLD you and your women own or keep. Zia’s reach was only to our BANK ACCOUNTS. Our idiots never tell Pakistanis what Quran orders. Like cutting of hands of ELECTRICITY stealer/s. I WANT REAL ISLAM too.
  • Bulleh Abbas ok Mirza, u r confusing me.. The conversation is about tax not Islam.. Modern tax is not to inrich goverment but central banks
  • Mirza Danish Jamal Yes thank you Mr. Bulleh. Very few people EVEN ever get a chance to read ideas like my writings above. If we LIVE in Pakistan we know MENTALITY. We are Muslims but steal electricity. Yes as YOU say Tax has nothing to do with Islam. Zia ul Haq’s Taliban education = today’s Pakistan. Muslim HOUSE OWNER can not kick out Muslim tenant because AYUB created RENT CONTROL laws stopping rights of City House Owners. YES no one SAYS what I say. NO ONE EVER hears WHAT I, MIRZA JAMAL has to say about Pakistan and its support for tax free education of Pashtoon provided FREE by Saudia = Taliban.