Saturday 18 December 2010

Islamic or Secular? May be Jinnah didn't find them different

It is often questioned that what exactly Jinnah wanted for Pakistan? Islamic state based on theocracy or Secular state with democracy? To put some guestimates to it, lets say that our 10% of total population (elite) propagates Jinnah's secular mindset while another 10% (mullahites) beat the drum using Jinnah's religious quotes. So who gets screwed? Sadly, it is Jinnah and remaining 80% of Pakistan. 

Those supporting secular view often quote:
If we want to make this great State of Pakistan happy and prosperous we should wholly and solely concentrate on the well-being of the people, and especially of the masses and the poor... you are free- you are free to go to your temples mosques or any other place of worship in this state of Pakistan. You may belong to any religion, caste or creed that has nothing to do with the business of the state... in due course of time Hindus will cease to be Hindus and Muslims will cease to Muslims- not in a religious sense for that is the personal faith of an individual- but in a political sense as citizens of one state. 
And the rival group will have the following up their sleeves: 
In an interview reported in the Press on 25th January 1948 Mr. Jinnah said that,
"he could not understand a section of people who deliberately wanted to create mischief and made propaganda that the Constitution of Pakistan would not be made on the basis of Shariat…"
There is a third dimension to this problem which never gets significant attention. Those missing this dimension will think of Jinnah as a cunning politician but other few aware of it will hold him in the ranks of wise. Jinnah found commonality between the platforms on which the two (Islamic and Secular) are based. This becomes very clear if one carefully reads his address to the Karachi Bar Association given on March 25th, 1948. 
"Thirteen hundred years ago he laid the foundation of democracy… The Prophet was a great teacher. He was a great lawgiver. He was a great statesman and a great sovereign who ruled. No doubt, there are many people who do not quite appreciate when we talk of Islam. Islam is not only a set of rituals, traditions and spiritual doctrines. Islam is also a code for every Muslim, which regulates his life and his conduct in even politics and economics and the like. It is based upon highest principles of honour, integrity, fair play and justice for all. One God and the equality of man is one of the fundamental principles of Islam. In Islam there is no difference between man and man. The qualities of equality, liberty and fraternity are the fundamental principles in Islam."
Also in the same speech,
"What reason is there for anyone to fear democracy, equality, freedom on the highest standard of integrity and on the basis of fair play and justice for everybody… Let us make it (the constitution of Pakistan). We shall make it and we will show it to the world."
Can you see it? He wanted to make the constitution of Pakistan (nothing coming off the shelf) based on Islamic principles which according to him were 'principles of honour, integrity, fair play and justice for all.' Focus! Focus! These principles are not wearing our trousers above the ankle height or confining women to walled compounds. He clearly expressed his views on the issues of women participation in economy but unfortunately it still remains an important issue in Pakistan.
We are victims of evil customs. It is a crime against humanity that our women are shut up within the four walls of the houses as prisoners. There is no sanction anywhere for the deplorable condition in which our women have to live.
Similarly he saw no contradiction between Islam and Democracy but instead went a step further and said:
On 14th February 1948 in Sibi Darbar,
"It is my belief that our salvation lies in following the golden rules of conduct set for us by our great lawgiver, The Prophet of Islam. Let us lay the foundations of our democracy on the basis of truly Islamic ideals and principles. Our Almighty has taught us that "Our decisions in the affairs of state shall be guided by discussions and consultations." 
And who will disagree with the ideology based on principles of equality, fair play and justice for all. A state where decisions are made through discussions and consultations. I am very sure about the 80% of population but at the same time very doubtful when it comes to the remaining 20%. 



Friday 17 December 2010

Are we really being crushed with taxes?


Lately, there has been a rather emotional debate on taxes. It has been argued that common pakistani (minus elite) has always been made the scape goat when it comes to generating revenue. I would, therefore, like to unravel the real situation with the help of some simple calculations. 

Poor people

Income tax (or Direct tax):
poor ppl in pakistan hardly pay any income tax as their monthly income is below the minimum taxable income of 25,000 Rs. 

Indirect tax (or GST/VAT):
now more than 70% of their income is spent on food which remains exempted from indirect taxes. on the remaining less than 30% income which they spend on non-food items, they pay indirect tax in the range of 17-25%. take the average and consider it to be 21%. This implies and indirect tax of just 6% (30% xply 21) on 100% of income.  

All taxes:
now lets see what we get. Poor people pay 0% income tax and only 6% indirect tax on their total income. And this is while we assume that no one tries to evade taxes through clever accounting. 

Middle class

Income tax (or Direct tax):
even a person earning 50,000 a month only pays 4.5% of income tax. 

Indirect tax (or GST/VAT):
around 55% plus of their income is spent on food which is again exempted from any indirect tax. on remaining less than 45%, they pay 21% of indirect tax. 

All taxes:
so a person earning 50,000 Rs. pays 4.5% income tax and 9.5% indirect tax on their income. We again have the similar assumption that none tries to evade applicable taxes which in reality is far from truth. 

Conclusion:

Pakistanis are not over burdened from tax. 

In contrast, minimum income tax in UK is alone 10% and goes up to 50% as annual income increases.