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Sunday March 23, 2025

Financial NRO

By our correspondents
January 11, 2016

People pay taxes all over the world because a failure to do so would invite punishment under law. It is the fear of law and the severity of the punishment that induce what we call the culture of tax in a society. There is no such thing as the voluntary payment of taxes. Replace the US Internal Revenue System with our FBR and tax evasion there would be as rampant as it occurs in the Islamic Republic of Pakistan.

Our finance minister has no qualms in offering amnesty to tax evaders. But when it comes to widows, orphans, pensioners, handicapped and senior citizens who have invested in National Saving Schemes he feels no hesitation in levying 15 percent withholding tax. The financial NRO announced by Nawaz Sharif follows similar amnesty schemes that were announced by the PPP government and by Gen (r) Pervez Musharraf. All such amnesty schemes are a violation of the constitution. It seems only those who pay taxes honestly are not entitled to any privileges in the country.

Ali Malik Tariq

Lahore