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Special Advisor to prime minister and MNA PPP Begum Shahnaz Wazir Ali has said that government should levy flood tax on those whose taxable income exceeds three hundred thousand rupees as poor people cannot bear the burden of additional taxes.
Talking to a private news channel, the minister said that" no one can disagree with it that the state should levy taxes but the tax structure should be reformed to save poor people from additional burden as poor people cannot bear the burden of additional taxes but those who are wealthy and earn a handsome income must pay their taxes".
Begum Wazir Ali said the relief is being provided by the government as the state institutions helped people. The flood tax will be excruciating burden for the middle class as this class has given donations voluntarily.
Advisor recalled that in the past the flood tax was levied during massive floods in East Pakistan now Bangladesh. Then General Ziaul Haq imposed Iqra Tax. Many countries in the world devise means to generate resources during emergency. The tax system of Pakistan has been weak and it is a reality. Many people don't pay taxes and are present in every stratum. We need to have new system of taxation only changing chairmen FBR will not make any difference. We have to see how much tax evasion and leakage is being done through corruption.
She said the Prime Minister announced once to establish a special fund for the relief of flood victims. He said that this fund will be open for public scrutiny. The fund will be posted in the internet. Replying to a question about total flood relief ie $17 million which has come so far and rest gone to NGOs she said the Canadian government provided aid to WFP, WHO, Unicef, and other agencies.
The word NGO is misleading as these are the UN agencies. It is correct that a hefty aid is being dispersed through international NGOs. She added that large scale organisations in the United Kingdom have arrangements when they have to finance something under the humanitarian assistance programme. Canada, UK and other countries disbursed aid through Save the Children, Canada or UK. A lot of aid in kind was provided to each flood hit areas.

Copyright Associated Press of Pakistan, 2010

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