MQM seeks tax on all types of income
MQM PROPOSALS FOR THE UPCOMING FEDERAL BUDGET

KARACHI: 2^ND JUNE 2011

Demanding relief for the common man in the coming budget, the Muttahida Quami Movement (MQM) on Thursday called for bringing every type of income under the tax net without any discrimination. The party’s budget proposals were unfolded by Deputy Convener of Central Co-ordination Committee of MQM and Parliamentary Leader of party in the National Assembly Dr. Farooq Sattar in a huge press conference at Khursheed Begum Secretariat Azizabad. MQM prepared budget Proposals for the year 2011- and submitted to the Government of Pakistan, Finance Minister, Secretary Finance, and Chairman FBR etc last month.

MQM’s Deputy Parliamentary leader in National Assembly Syed Haider Abbas Rizvi, members of Finance Committee of MQM Senator Ahmed Ali, Senator Abdul Haseeb, MNA Rasheed Godial, MNA Khwaja Sohail and  Parliamentry leader in Sindh Assembly Syed Sardar Ahmed were also present in press conference.

Dr. Farooq Sattar said that MQM is the only political party in Pakistan who whether in coalition or opposition always rises to the occasion and submits proposals for the improvement of quality of life of the people of lower and middle class. These propitious and advantageous proposals, if adopted and implemented may result in alleviating the economic ailment which has affected social fabric of the society and has caused infinite harm.

Dr Sattar said that if the injustices and discrimination in the tax system were removed then there was a possibility to optimize the available resources.

Dr Sattar gave proposals for bringing improvement in various sectors of the economy. Referring to stimulating new investment, industrialization and employment generation he emphasized that the energy crisis prevailing in the country should be addressed on priority basis. The cost of production should be reduced by making available gas, electricity and fuel at reduced rates.

He stressed upon the need of improvement in the law and order situation in the country in order to attract investment. He asserted that peace and tranquility in Karachi was a sine qua non for the stability of the country.

Speaking about optimization of available resources in the country Dr Sattar said that an additional Rs 800 to Rs 1200 billion could be generated through good governance, efficient tax collection, plugging the leakage in tax system, eliminating corruption and widening the tax base.

He said that every type of income should be taxed without any discrimination. It was necessary for sustainable economic development to broaden the base of direct taxes. The misuse of Afghan Transit Trade should stop forthwith. This single step could help generate additional revenue of up to Rs 100 to 200 billion.

He said that an independent commission should be formed to recover loans that were written off under political influences.

Speaking about socio economic reforms Dr Sattar stressed upon the need for land reforms and agricultural reforms in the country. He said that micro finance facility should be available to the poor people in order to bring about a change in their economic condition. He highlighted the need for promoting small and medium enterprises (SMEs) for giving impetus to business activity.

Speaking about incentives to a common man in the budget he said the minimum wages should be increased to Rs 10000/-. The salaries of the government employees should also be increased to the extent of the rate of inflation.

Dr Sattar called for the creation of National Security Schemes to cover health, education, involuntary unemployment and old age benefits in the light of the vision of a welfare state seen by the founding father of the country Quaid-i-Azam Muhammad Ali Jinnah. He said that the budgetary allocations for education and health should be increased to at least 5, 5 per cent of the GDP. He said that the prices of POL, gas and electricity should be rationalized according to the financial status of the consumer.

He also emphasized upon the need for providing incentives to overseas Pakistanis for smooth and quick transfer for remittances from abroad.

Dr Sattar also spoke about important mega projects for different cities of the country. He said that the shortage in water supply in Karachi should be removed by increasing existing water supply from 1200 cusecs (600 MGD) to 2400 cusecs (1200 MGD). The federal government should allocate funds for K – 4 water supply project in Karachi for an additional supply of 100 to 150 MGD. He also called for allocation of funds for mass transit program and Karachi circular railway project. He said that the work on Karachi and Lahore mass transit programs should begin at the earliest.

Dr Sattar said block allocations should be made for special development of the backward areas of southern Punjab. Block allocations should also be made for building small dams, projects relating to mineral explorations and flood protections schemes for Azad Kashmir, Gilgit-Baltistan and Northern Areas of the country.