Editorial
Establishing income tax culture
High elected functionaries must lead the way
NOWHERE in the world people with taxable income are ever exempted from paying taxes to government coffer. Only diplomats are immune in a host country. Therefore, the fact that the whole lot of our high elected functionaries have so far enjoyed exemption from taxation comes as a rude surprise. It is not only an anachronism but also a pernicious privilege amounting to abuse of elected status. It also represented violation of the principle of equity.
Our country has one of the lowest of tax bases in the world. The finance minister and the NBR chief have launched a vigorous campaign to bring all people eligible to pay taxes under the tax net. It is downright ridiculous and unfair to have kept the PM, Speakers of parliament, ministers, state ministers and the whole lot of MPs out of it.
Though belated, the high elected functionaries are now legally obliged to pay taxes under the provisions of the Finance Act 2011. We found the see-saw between the NBR and the parliament secretariat over the withdrawal of exemption provisions entirely unnecessary. However, it is good to note that the NBR chairman has asserted that they are all required to pay taxes under the new law.
It is the leaders who have to set example for others to follow. Unfortunately, they have been found wanting in upholding standards of accountability which as lawmakers and recipients of huge sums of salaries, honoraria and allowances, they are morally and legally obliged to do.
In the past, we had seen two counts of breach of the principle of accountability. First, the opposition members draw their salaries, daily allowances and other perks even for the period they have boycotted the parliament without any qualm. Secondly, the MPs in the past have been running up arrears in payment of telephone bills despite having drawn allowances regularly for the purpose. Though not directly related to the issue of paying income tax, they nonetheless constitute serious lapses of accountability.
The overall culture of non-payment of taxes and other dues has been a big drag on our revenue collection with the high elected public representatives setting the wrong example. This must end. If we have to establish a healthy tax and accountability culture, the tenor will have to be set at the top of the order to have the desired percolatory compliances at all other levels.
For all latest news, follow The Daily Star's Google News channel.
Comments