The Pakistani Spectator

Taxes and duties are a major source of income for any government to run its functions. A government, which fails to put economic progress on the right track by introducing certain policies to give boost to industrial, human resource and business sectors, becomes totally dependent on taxation.

After selling the Cash Cows the only option remains with authorities is to impose multiple taxes and duties. For example, organization like steel mills (a cash cow) help to earn revenue, taxes and duties as well. Employment of thousands of people directly or indirectly is another benefit of such organization.

If you kill the hen, which lay golden eggs, all the things go as they were except the revenue the government was earning in form of profit. Now to recover that loss another tax has to be levied or an extra duty.

Talking about the electricity {which is scarce now a days and shall be as per required Megawatts by December 2009 (a big joke to justify Raja Perviaz Ashraf’s portfolio)}, which has multiple direct or indirect taxes and duties on its raw materials and the final product. After the IPPs started production the raw material i.e. diesel and furnace oil was required to produce electricity. That raw material price is inclusive of taxes and import duties, when power generated by using these fuels that is again taxed for the consumer @16% in shape of GST and other hidden charges. If the bill is not paid within specified period than another 5% amount has to be paid. Decision to permit IPPs in Pakistan increased cash outflows in bid to import oil products.

While consumer paying all these taxes, duties and late payment charges can ask the government to provide interval free (24/7) electric power. Even if the electric power is supplied with or without any shortage, are these multiple taxations justified? I am afraid when the time will come that all twenty-four (24) hours shall be ‘Happy Hours’ the nation shall become bankrupt unable to pay electric bill after 17% increase in bills.