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April 27, 2024
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EditorialTax returns of MPs

Tax returns of MPs

The tax directory of parliamentarians’ tax returns for 2029, released by the Federal Board of Revenue, depicts shocking figures. Taxes are levied to collect a portion of individuals’ and companies’ earnings and spend it on the poor and run the government. Most of the members have declared agriculture as their source of income which is proof of their feudalism in popular parlance. Some big and famous politicians have paid less tax than what their lifestyle is all about. The directory also shows the non-seriousness of the 331 members of the Senate and national and provincial assemblies who did not even submit the details of their assets, among them are two chief ministers and six federal ministers. What the opposition is raging about is Prime Minister Imran Khan paid almost three and a half times more taxes than in 2018, which means that his income has increased. Prime Minister Khan should reveal the details of this increase in revenue. As most of the MPs hide behind their vast farms, former PM Syed Yousuf Raza Gilani has not submitted any income tax, even though his agricultural income is Rs12 million. Chief Minister Usman Buzdar paid only Rs2,000 in taxes. The highest tax was paid by PTI MNA Najib Haroon – more than Rs140 million.

Tax returns are to be filed by December 31. Those failing to meet the deadlines will have their membership suspended. The directory figures show contradictions in our tax system. Finance Minister Shaukat Tareen says that in order to create a tax culture, it should start with the parliamentarians. When the nation knows that MPs pay taxes in a transparent manner, ordinary citizens will pay taxes in the same spirit. But before preaching tax sermons to the public, the government must fix the existing mismatch between the tax administration and the tax system at federal and provincial levels. The government must take up tax reforms at the earliest. The country should have only income tax and general sales tax and abolish other taxes. The government should also work on the expansion of tax base, instead of rates. The finance minister has vowed that each person’s tax will be deducted according to their income. But this should start from the MPs and the expenses of parliamentarians should be reviewed and tax notices should be issued to those whose expenses are not commensurate with their income. Parliamentarians should lead the country by setting themselves as examples.

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