US withholds flood aid unless Pakistan raises taxes

[Nahraf]

Clinton: Withhold Flood Aid Unless Pakistan Raises Taxes -- News from Antiwar.com

Clinton: Withhold Flood Aid Unless Pakistan Raises Taxes
Humanitarian Aid Conditional on Taxing the Rich
by Jason Ditz, October 14, 2010
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Following up on last month’s demands that Pakistan agree to yet another massive tax increase on “wealthy landowners,” Secretary of State Hillary Clinton has stepped the issue up even more, threatening to withdraw all humanitarian aid from the nation unless they comply.

Today it was even worse, as Clinton pressured the European Union to do the same. Between them, the US and EU have contributed more than half of the $1.5 billion in humanitarian aid for this year’s disastrous floods.

“It is unacceptable,” according to Secretary Clinton, “for those with means in Pakistan not to be doing their fair share to help their own people.” While rich Pakistanis have contributed to relief efforts, they have balked at donating to the official government aid program, citing corruption.

The floods killed thousands and left roughly a fifth of the nation under water, doing major damage to Pakistan at a time when a decade of US-led war along its border had already brought it to the brink of collapse. One would think this would be a poor time to raise taxes, but the Obama Administration has repeatedly demanded Pakistan do so, and despite Pakistan already issuing a number of tax increases over the past year, it seems it isn’t enough.

 

[AgNoStiC MuSliM]

Way to go Clinton.

This is the kind of public diplomacy that can win the US hearts and minds IMO. Most Pakistanis see international aid as being misused and gobbled up by corrupt politicians anyway, and to hear the US speak up against the rich and powerful evading taxes will resonate with the average Pakistani far more than the KLL.

It may still not be enough to paper over the anti-American sentiment due to the Drone attacks and Afghan invasion, but is nonetheless a positive move.

 

[somebozo]

The corrupt will pay taxes and then double up on US aid..what the big deal??
A contractor can simply hike his billing and falsify invoices to over charge the government and cover his loss. What we needed is a computerized taxation system and a very simplified taxation system.
Better yet go tax free on all small business at the promise of enforcing a level of employment opportunities. Only tax the large and foreign corporations.

 

[JamesBond]

It will only be a regressive move. As it is, the wealthy do not care for the poor and the suffering.

Unki bala se marte hain toh marein. Why will they take a headache?

Isn't this what they are going to think?

 

[keeninterest]

Americans are as usual interfering in the running of the affairs of Pakistan and I am surprised people are actually supporting it but their support suggests they accept American interference as a fact that cant be undone but then if this sort of interference is acceptable then all sorts of interference should be welcome coming from the Americans since there must be some hidden good even there that most Pakistanis otherwise don’t want to see or cant visualize. This is a story much like the way Saudi interference is acceptable to a Pakistani as a larger good for the society.

I have my serious doubts the elites will pay up, they never did for good 63 years so why will they now, don’t forget the elites who are being asked to pay up are the landlords, politicians, bureaucrats, top armed forces guys, business community, journalists and all these are the people who run the show for Pakistan and are the opinion makers of the country, leave that aside a basic thing like land reforms was never done and the little that was done was nothing but a joke so clearly they don’t have a reason to do it this time either, its not as if their lives are at stake, the attempt will be to divert the attention from this and possibly ways of doing that could be threaten a pull out from the WoT on one pretext or another or possibly come up with something else on lines that hurt American interests in that WoT which will have on ground support in Pakistan which will for sure earn some much needed brownie points for the political elite and that should be enough for the Americans to come and soothe the hurt feelings of the elite and the aid will flow in but with an added sorry. Americans want to do it that ways, well its their wish.

 

[silent hill]

US should not involve in pak internal affairs..

ager pakistani hi beghairat hoon, tu ine koi alien nai sudhar sakta..

 

[DesiGuy]

What a great news. There are individuals in pakistan who are rich illegally.

 

[kidwaibhai]

i agree with Sec Clinton. Pakistan should not get any aid until the government starts collecting taxes from the rich. No more should the poor subsidize the rich. enough is enough.

 

[Hyde]

May be this is also a relevant thread so i post here rather than creating new thread

World tells Pakistan to shape up in exchange for aid
Updated at: 2024 PST, Friday, October 15, 2010
World tells Pakistan to shape up in exchange for aid BRUSSELS: World powers told Pakistan that post-flood aid was part of a "two-way" deal on reform Friday, as Islamabad also offered to lend a hand to regional peace by facilitating Afghan-Taliban talks.

After US Secretary of State Hillary Clinton demanded Pakistan's "affluent and elite" be made to pay through tax changes, ministers attending a major aid meeting on Pakistan also insisted there would be no gain without some pain.

For Pakistan to "become more stable," German Foreign Minister Guido Westerwelle said, "you can harvest as much money as you want, it won't be enough at the end of the day if there is no reform."

"An adjustment in the equilibrium between rich and poor in Pakistan" was fundamental, he said.

The meeting of the Friends of Democratic Pakistan came as the World Bank and Asian Development Bank estimated damages for Pakistan's devastating floods since July at 9.7 billion dollars -- almost twice the amount of its 2005 earthquake.

British Foreign Secretary William Hague, who said London had already ploughed some 134 million pounds (215 million dollars) of aid into its former colonial territory, also underlined that "there are necessary reforms in
Pakistan and they should include a widening of the tax base."

But he said Pakistan Foreign Minister Shah Mahmood Qureshi had "stressed in the meeting that the government of Pakistan is fully cognisant of what they need to do."

Stepping into the Brussels talks, gathering 26 countries and international groups, Qureshi said "there are more reforms in the pipeline."

He also offered Islamabad's services for "reconciliation" in Afghanistan, saying a peaceful neighbour was in his country's interests.

Reconciliation was "an Afghan initiative," he said. "They have to own it, they have to lead it. We are there to help, we are there to facilitate."

An EU source had warned before the talks concluded that backers were "not signing any blank cheques."

"It's a two-way street," the source added, indicating EU foreign affairs chief Catherine Ashton's view that "unprecedented support cannot be expected without profound changes" in the way Pakistan runs its economy.

"We must make sure where the money goes," said one diplomat. "We expect
clear commitments."

The floods affected 21 million people -- with 12 million in need of emergency help by UN estimates.

To date the United States and the EU have provided around 450 million dollars each in aid to Pakistan.

Europe has also offered a major trade boost, proposing to lift duties on 75 imports as part of an aid-linked package.

But the three-year suspension of duties still requires a waiver from the World Trade Organisation.

And Italy's Foreign Minister Franco Frattini warned that his country retains reservations, hinting that Rome's backing would be conditional on India failing to obtain similar concessions in the WTO.

"Under certain limitations we can go ahead," Frattini said. "I am ready but on condition."

Qureshi on Thursday told the European parliament that Islamabad's fledgling democracy was on the march after ending a decade of military rule in 2008.

"Obviously it takes time. Old habits die hard," he said. "You have to be patient."

Source: World tells Pakistan to shape up in exchange for aid - GEO.tv

 

[Mirage2000]

Great move by US I think they should pressure this govt to take more money from tax evading businessmen and non taxpaying landlords.

When floods are wrecking havoc and govt is short of money its just stupid not to tax agricultural income a sector that is almost 21% of GDP.

The should focus on collecting direct taxes from rich rather than collecting indirect taxes from people.

 

[BATMAN]

I prefer a video link to her speech!

 

[keeninterest]

I have my serious doubts the elites will pay up, they never did for good 63 years so why will they now, don’t forget the elites who are being asked to pay up are the landlords, politicians, bureaucrats, top armed forces guys, business community, journalists and all these are the people who run the show for Pakistan and are the opinion makers of the country, leave that aside a basic thing like land reforms was never done and the little that was done was nothing but a joke so clearly they don’t have a reason to do it this time either, its not as if their lives are at stake, the attempt will be to divert the attention from this and possibly ways of doing that could be threaten a pull out from the WoT on one pretext or another or possibly come up with something else on lines that hurt American interests in that WoT which will have on ground support in Pakistan which will for sure earn some much needed brownie points for the political elite and that should be enough for the Americans to come and soothe the hurt feelings of the elite and the aid will flow in but with an added sorry. Americans want to do it that ways, well its their wish.

oh well did i say that just a little too early, here come the crusaders!

ISLAMABAD: In the run-up to the third round of strategic dialogue, Pakistani authorities are getting irritated over the lack of US interest in resolving the country’s long-term regional issues and in providing economic support despite publicly declaring it a key ally in the war on terror and appreciating its sacrifices.

The authorities are also dissatisfied with the ‘triple accounting’ by the United States of its economic assistance to Pakistan, although the overall assistance remained less than $1.5 billion in a year. They also grumble that Pakistan has not been given market access for its products they believe it deserves in comparison to other countries.

DAWN.COM | Front Page | Pakistan feels US has let it down

so do i see some support gathering for the pakistani government now or does it still remain with the americans?

i am sure this is not the end of it, there is more juice to flow!

 

[fatman17]

its unfortunate that other countries are reminding us to raise taxes esp from the rich, fuedal, farming and trade classes - its is the responsibility of the country to have in place a fair and rational taxation system. the working class (which i am a part of) gets over-taxed as our taxes are deducted at source. in summary the US is justified IMO.

 

[Awesome]

We can raise taxes but will they not be reimbursed from the aid?

Just don't give the aid, period.

 

[Hyde]

We can raise taxes but will they not be reimbursed from the aid?

Just don't give the aid, period.

But the question is....Can we really sustain without aid under the current circumstances?

I bet its not our life-line (as per some analysts) but it will surely tear our clothes a part (especially the poorly peoples will be heavily affected) if we stop receiving aid from the world