Poor subsidizing Rich?
IT seems hardly anyone pays Income Tax. Politicians are the richest citizens and they know how to live without paying taxes. A former Tax official said, “This is a system of the elite, by the elite and for the elite, it is a skewed system in which the poor man subsidizes the rich man.”
When a Member of parliament tried to pay tax, the tax collectors refused to take the money, not wanting to rock the boat. Most economic activity takes place in the shadows. Merchants - the most vociferous opponents of a value-added tax, because it would require documentation - make up a fifth of the economy, but carry 6 percent of its tax burden.
In this country, no one asks, “How did you get that flat?” “If you don't have income, fine, but then don't go and get into a Land Cruiser.”
A former Supreme Court Judge blames what he calls moral decay in society, in which “respect for rules has fallen, merit has been forgotten and cheating has become a way of life. Today, corruption has broken all records.”
Sounds familiar? This is what the New York Times reported yesterday about Pakistan.