The black economy

The consistency and commitment of this government and its predecessors to protect the black economy would surely be appreciated by those for whom collecting taxes must almost be considered a sin. When the finance minister announced that CVT would be levied on actual profits incurred from sale of real estate which is sold within five years of its acquirement by an investor, it gave birth to hopes that finally this government may have realised that this Rs7 trillion industry which pays a meager Rs4 billion as indirect tax must be made to pay its due share, as is practice in every responsible country. If this budgetary taxation plan were to be implemented it would encourage investors to invest in industry, boost documented economy, promote employment, and perhaps bring down the spiraling debt-to-GDP ratio in a country where external debt has increased by an all time high of $21 billion, most of it to boost our Forex Reserves.

What else can be expected from the wizards of the FBR? It seems to be the goal of every government that Quaid’s legacy of a modern democratic welfare state is defeated. By withdrawing CVT on actual profits on sale of real estate evaluated at market price, the federal government has yielded to pressures of dons and mafias for whom Pakistan is a country ideal for profiteering and pilfering, but not one worthy to either live in or invest in.

M T Ali

Lahore