Hina makes attempt to convince opposition: opposition against RGST

Minister of State for Finance Hina Rabbani Khar on Tuesday made another try to convince those opposing RGST when attention of the lower house was drawn to the fact that some 10,000 traders from 34 posh markets of the country had paid merely Rs 704 million tax, saying documentation of economy was need of the hour.
"It is glaring example of the prevailing tax culture in the country and makes government's case for documentation of the economy more strong," Hina Rabbani said while responding to calling attention notice regarding payment of tax by 35 percent traders and recovery of only Rs 700 million from 34 posh markets.
The data of the taxes 2009-2010 was collected from the four big markets of Islamabad, three markets of Rawalpindi, 10 markets of Lahore, three of Faisalabad, four of Multan, four of Peshawar, six markets of Karachi during a survey.
Though Ms Khar could not reveal the estimated revenue loss, she urged the legislators to co-operate with the government by not pleading the case of tax evaders. These are the people who start rallying against the government and succeed in winning the support of parliamentarians, she added. We have started issuing notices to those who do not file their tax returns despite having the turnout of more than Rs 5 million, she said in response to a question about the steps being taken by the government to address the problem.
She also urged the lawmakers not to politicise the issue saying the government was exploring every option to improve the system. The tax base at this juncture was much smaller than the required. Hina Rabbani Khar said as she identified non-filing, self-assessment and weak audit structure as major contributors.
Hina Rabbani Khar also lamented disapproval of 'flood tax' and continued opposition of the RGST and appealed the house for support to broaden the tax net. In addition, she deplored the exemption given to several sectors in the last 20 years. The government had tabled the Reformed General Sales Tax (RGST) Bill 2010 in the National Assembly but almost all political parties, including the PML-N, PML-Q, MQM and JUI-F had opposed the move.
Earlier, while condemning the terrorists' activities in Karachi and Lahore the other day, Interior Minister Rehman Malik said "there is a plan to destabilise Pakistan." Leaders from MQM, PML-N, JUI-F and the PPP had condemned the incident while paying tribute to the police personnel who had lost their lives.