Bajwa urges govt to expand tax base in order to break 'begging bowl'

[wiseone2]

COAS General Qamar Bajwa raises serious concerns over economy, rising debts

ISLAMABAD – COAS General Qamar Bajwa has for the first time raised serious concerns over the economic conditions of the country and especially the rising debt of Pakistan.

He said it is high time that economic growth and sustainability was placed at highest priority.

“Growth has picked up but the debts are sky high. Infrastructure and energy have improved considerably but the current account balance is not in our favour,” he told the audience at the seminar on ‘Interplay of Economy and Security’ held in Karachi on Wednesday.
The COAS said the country’s tax to GDP ratio is abysmally low, which “needs to change if we are to break the begging bowl”, adding that economy remains “one of our highest concerns during National Security Council meetings”.

According to the finance ministry, each Pakistani owes Rs95,000 in debt with the country’s foreign debt and liabilities standing at $58 billion – around Rs6.11 trillion.“In order to secure our future, we must be ready to take difficult decisions,” he said. “We have to increase our tax base, bring in fiscal discipline and ensure continuity of economic policies.”

Regarding the continuing security operation in Karachi, the army chief said when Pakistan’s enemies want to “choke Pakistan, they try to destabilise Karachi”.
“It is because of this sensitivity, that peace in Karachi has been our top priority,” he said. “We have worked very hard to restore peace and now hope that economic activity would return at a fast pace.”

He also spoke on external security and the need to pursue the National Action Plan, which was initiated after the 2014 Peshawar attack.

He appreciated the security for improvement in the country’s security environment.

why would anyone pay taxes when it is siphoned off ?

 

[blain2]

Why is this wannabe Tyrant preaching taxation to the Government? He should focus on his job, making sure foreign drones are not launching bombing missions (429 so far) over Pakistan. I mean what does this wannabe Tyrant get paid for exactly, preaching?

Since we're on the subject, how come 36-years of Tyrannical military-rule did not manage to increase taxation to more than 1%.? What were the five tyrants doing subsiding everything leading to Pakistan's internal debt increasing to breaking point (which the civilian Governments then had to reduce by going to international banks)?

The gent in question was asked to deliver a key-note on a topic. He is after all on the National Security Council which has purview over all aspects that concern the nation's security. This means economy, geo-politics and obviously defence. Also the reason the military did not succeed in increasing the tax net is because you need buy-in from landlords, who happen to be politicians sitting in the national and provincial assemblies. Only the government of the day can make that happen by passing certain laws after convincing other politicians of the need to do so. Leaving aside the critique that one may have with those in uniform, the point raised is valid. Pakistanis need to pay more out of their own pockets to reduce our dependence. Regardless of how corrupt the taxation system maybe, nobody should use that as an excuse to avoid paying taxes.

 

[Baghial]

I don't know what's worse, the truth of how much mismanagement Pakistan has suffered, or the fact that it's now the COAS making these statements. Whatever the situation is, it's not his place to comment on these matters.

both are saying the same thing,,,,,,,,,, pml-n blaming army eating too much............. and army blaming the govt, for eating too much............... while none are giving a solution for the problem..........the public sleeps empty stomache,,,,, billions of dollars wasted on wrong priorities.........even army and judicary are backing off from god father.....now,,,,,, empty statements from army and judicary, ..................rule of law?????????? no man its law of the ruler here.....

 

[VCheng]

Also the reason the military did not succeed in increasing the tax net is because you need buy-in from landlords, who happen to be politicians sitting in the national and provincial assemblies.

What about during the long periods of Martial Law?

 

[BetterPakistan]

why would anyone pay taxes when it is siphoned off ?

Do not taxes get siphoned off in India??

 

[CriticalThought]

I don't know what's worse, the truth of how much mismanagement Pakistan has suffered, or the fact that it's now the COAS making these statements. Whatever the situation is, it's not his place to comment on these matters.

Dr. Shahid Masood uses the term 'Compulsive Intervention'. It's not good and it's the doing of financial terrorists in the government. I am sure this is the very last thing which the COAS wants to talk about.

 

[Baghial]

Bajwa urges govt to expand tax base in order to break 'begging bowl'

Chief of Army Staff (COAS) Gen Qamar Javed Bajwa said Pakistan needs to expand its tax base, bring in financial discipline and ensure continuity of economic policies to be able to break the begging bowl, military's media wing reported.

"The economy is showing mixed indicators. Growth has picked up but the debts are sky high. Infrastructure and energy have improved considerably but the current account balance is not in our favour," the army chief reportedly said while addressing a seminar on the interplay of economy and security on Wednesday.

"Our tax to GDP ratio is abysmally low and this needs to change if we are to break the begging bowl," read the text of Bajwa's speech shared by Inter-Services Public Relations.

He also shared that economy remains a major concern during National Security Council meetings, also revealing that he reads the business and economy page of the newspaper right after the main page because of its importance.

ARTICLE CONTINUES AFTER AD
"Pakistan is capable of creating sufficient fiscal space to address underlying structural problems through tax reforms, documenting economy, diversifying the export base, and encouraging savings to finance a level of investment that could sustain growth rate higher than the rise of population," but the benefits should also reach all parts of Pakistan including interior Sindh, Fata, Balochistan and Southern Punjab, he said.

Gen Bajwa said that after the end of cold war people were claiming that economic interests alone would dictate national security but the "reappearance of age-old fault lines and reassertion of ancient parochial passions of race, language, religion and identity" has led to security once again becoming "the foremost business and task of the state".

"We have to continuously ensure a viable balance between economy and security," the army chief said, focusing on the security-economy nexus. "Only then will we arrive at a future that ensures sustained peace and happiness for our people."

Many of the planned measures of the National Action Plan (NAP) will contribute directly to the economic and political stability of the country, he said, giving examples of police, judicial and madrassah reforms.

"We cannot afford to leave a large segment of our youth with limited options — madrassahs must enable their students to become useful members of the society who are not left behind in any field of life."

He cited the peaceful commencement of Muharram, Bohra community holding its annual gathering in Pakistan and sports and cultural events as examples of peace reiterating in the country.

The China-Pakistan Economic Corridor (CPEC) is "a complete development platform that has the potential to act as a powerful springboard for shared development in the entire Central Asia-South Asia region," Gen Bajwa said.

"Our destinies are inextricably linked," he told India and Afghanistan, adding that he sincerely believes that the region "will sink or sail together."

https//wwwdawncom/news/1363138/bajwa-urges-govt-to-expand-tax-base-in-order-to-break-begging-bowl

mashallah, COAS didnt even bother to mention anything about corruption,,,,which is eating like a cancer to pakistan,,, hes talking about badhazmi after eating all the loans the govt took.. and woooah the chinies slavery time is comming

 

[blain2]

What about during the long periods of Martial Law?

The tax net with each ML has always increased. However the increase is marginal. Anyone who watches military take overs should know that the military rule has its limitations. Immediately after taking over, it is the military that requires legitimacy. That in turn means making deals with politicians. Afterall, without the bureaucracy and pols, the military cannot govern the country. In the process of making deals, the issue that is the most toxic one i.e. taxation, takes a back seat. So the reality is that only a democratic dispensation can make something like this stick and thus the urging by the Army Chief.

 

[VCheng]

The tax net with each ML has always increased. However the increase is marginal. Anyone who watches military take overs should know that the military rule has its limitations. Immediately after taking over, it is the military that requires legitimacy. That in turn means making deals with politicians. Afterall, without the bureaucracy and pols, the military cannot govern the country. In the process of making deals, the issue that is the most toxic one i.e. taxation, takes a back seat. So the reality is that only a democratic dispensation can make something like this stick.

Sir, if the Army makes deals with politicians, it cannot deride politicians making deals with politicians either. After all, that is what politicians do, right?

 

[cloud4000]

Sir, if the Army makes deals with politicians, it cannot deride politicians making deals with politicians either. After all, that is what politicians do, right?

Deal making is how things get done in a democracy, also known as consensus building.

 

[Azadkashmir]

yes i agree with you. the problem with increase in tax is that industrialists transfer their burden by increasing price of their product or by reducing quality of products and decreasing benefits for their employees which for daily use products badly affect public


the generals also not pay any tax on their income and pensions

Pakistan already has crappy products and service, pak people are scrooge on quality they think backwards.
They love to be the donkey. They think about status spending rather practical spending.

 

[Jungibaaz]

Dr. Shahid Masood uses the term 'Compulsive Intervention'. It's not good and it's the doing of financial terrorists in the government. I am sure this is the very last thing which the COAS wants to talk about.

I am still somewhat optimistic about the future. The only thing that worries me is the internal politics of Pakistan, I've always contended that it's too toxic and unstable.

both are saying the same thing,,,,,,,,,, pml-n blaming army eating too much............. and army blaming the govt, for eating too much............... while none are giving a solution for the problem..........the public sleeps empty stomache,,,,, billions of dollars wasted on wrong priorities.........even army and judicary are backing off from god father.....now,,,,,, empty statements from army and judicary, ..................rule of law?????????? no man its law of the ruler here.....

Pakistan needs a prolonged period of political stability, rule by consensus or by deadlock enforced by the structure of institutions. Pakistanis eventually will need freedom from both elite tyrannies civilian and military. Power should lie with citizens, Pakistan also needs a more robust constitution in my opinion and serious political reforms, the kind that major democracies in the world had aeons ago that we have yet to have. And I can't stress enough that the military must never participate in politics, it not only provides bad outcomes, it's wrong in essence and prevents us from moving on.

 

[VCheng]

Pakistan needs a prolonged period of political stability, rule by consensus or by deadlock enforced by the structure of institutions. Pakistanis eventually will need freedom from both elite tyrannies civilian and military. Power should lie with citizens, Pakistan also needs a more robust constitution in my opinion and serious political reforms, the kind that major democracies in the world had aeons ago that we have yet to have. And I can't stress enough that the military must never participate in politics, it not only provides bad outcomes, it's wrong in essence and prevents us from moving on.

We all know what needs to be done, but who will bell this particular 800-lb tiger?

 

[wiseone2]

Do not taxes get siphoned off in India??

citizens get lot more for their taxes

 

[Baghial]

There is no avoiding war; it can only be postponed to the advantage of others......