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Wealth tax being abolished from July 1: Moin

WIRASAT HUSSNAIN

KARACHI: Federal Interior Minister Lt. Gen. Moin Uddin Haider (Retd) said on Monday that wealth tax is being withdrawn by the next financial year.

Haider was addressing a seminar on 'good governance' held here under the auspices of the Centre for Development and Democracy at a hotel.

He said there would be an important announcement next month on 'district government' by Chief Executive Gen. Pervez Musharraf. It would set the tone for devolution of powers from the federal government to the provincial government and then to the grassroots levels in districts.

However, to a question Haider said that they were not in a hurry to go back leaving their agenda half-finished or work half-done.

"We would not leave anything half-finished and therefore, in no hurry to leave. The work we have started i.e., cleaning the mess, putting the economy on rails and evolving a system most conducive to promote and sustain democracy are not that simple and can be accomplished in a short span of time. We would leave after completing the work," said Moin.

He said along with the wealth tax a number of other levies would be abolished and only two taxes, sales tax and income tax, would be retained.

Haider said that the federal finance minister is working on the proposal and a team is assisting him in rationalising the taxation system. However, he said, abolition of wealth tax has been agreed in principle.

The minister said more than 200 experts and about 40 groups were there formulating plan and policies for the betterment of the country. "The finance minister is busy in drawing up the budget for the financial year 2000-2001 with the help of experts and in the light of various budget proposals the ministry could place on record for study and discussion.

Haider said though it was not his domain, nevertheless, it would be in the fitness of things to talk about what the government is about to do for the good of the country. "The next budget will make provision of Rs 20 billion for the poverty alleviation programme, it would be followed by setting up micro-credit banks and revamping of Zakat and Ushr system."

He said the group of experts are working out plans/proposals for achieving self-reliance in every walks of life, corrections in economic policy, agrarian reforms and adoption of measures to raise output.

These groups have also firmed up recommendation on the streamlining of small business promotion, software industry and reduction of poverty.

Talking about good governance, Haider said there should economic independence, justice, merit and rule of law to ensure good governance in a society.

He said the country had been deprived of these basic ingredients of an efficient system out of which good governance could emerge.

Haider said that the government was conscious that the process of accountability should be result-oriented so that its results could be seen.

He said people would soon start seeing the results of the accountability process. The amendment in the National Accountability Bureau rules were necessary as the provisions of the Pakistan Penal Code were not very helpful for our purpose and "usually favoured the criminals."

He said one day a law enforcement agency catches a criminal and on the next day he is released on bail. "A change is necessary and a change was necessary."

The minister said that they may not stay for a very long period but "we would like the NAB to stay and prove effective".

To make NAB effective changes on sound footings are necessary, he added. "Basically it should be headed by a civilian and serve as a strong institution for a long time."

A retired judge of the high court and former Sindh governor, Fakharuddin G. Ibrahim, flayed the present government for its anti-democratic posture and demanded "an early return of the parliamentary form of government in the country."

Speaking on the concept of good governance, he said the people of Pakistan, including himself, welcomed the October 12 action by the people in uniform for a sole reason that the then-government wanted to divide the army. "We did not want a divided army. We wanted the institution remain strong and united. We supported it."

But what followed is questionable, Ibrahim said.

He commented upon the way NAB is harassing the people, fresh oath was administered to judges who were already under oath of the Constitution, concentration of powers with the CE instead of devolving to provinces and districts, and removal of disparity between the provinces.

He said neither there is rule of law, open government, nor appropriate, transparent and across the board accountability. "If these basics are not addressed, how the objectives of good governance can be achieved?"

Ibrahim said the people were denied of their rights to access to information. "I would ask the government to promulgate freedom of information ordinance/act ."

He said allow people to know what is happening if you want an end to corruption. " Corruption takes place in the darkness. Take out your people out of this darkness."

Ibrahim said that let they be clear on the question of accountability. It is not an easy task and cannot be done in a short period of time. "The government would do better if it returns to parliamentary system of government and let the people run their own affairs. Because staying longer in power will take you to a stage where you would yearn for absolute powers. That would be a disaster. You are , sir, for a short time and will not be there for long; and you should not."

Nazim F. Haji said that priority should be given to revival of national economy followed by return of democratic rule. He asked to create a strong local bodies system with enough powers to run their own affairs.

He suggested abolition of concurrent federal list and lifting of control over the Tribal Areas, and reforms in the Election Commission, electoral process and independent judiciary.

Nafees Siddiqui, chairman of the Centre for Development and Democracy, said the CDD had chalked out a programme to remotivate the thinking process and had decided to concentrate on a three-element agenda of having discussions, debates and seminars on good governance, economic revival and devolution of power throughout year 2000.

He said the membership campaign of the CDD achieves more relevance in the present scenario. "The concept of engaging five or six BPS-22 officers to form think-tank would make no dent in the system. . . but the system needs consensus of the free thinkers. Our researchers would avoid saying the final word but would present their analysis for discussion so that a unified opinion could evolve."

Siddiqui said that he did not aspire to be the only such body in Pakistan which promoted the process of thinking. "Let more of them emerge. Let us jointly work out alternative budgets, alternative five-year plans, alternative foreign policy. Let us propose concrete socio-economic reforms."