The Sugar Coated Shaft

#5 by godot

“can you cite an example of an economic model implemented in a country when the budget was poor-friendly that resulted in rapid economic growth for that country?”

Way to go Godot!

Budgets don’t make or break a country. The economic and fiscal policies do. Budgets are a way to control those policies. May I ask the author or other folks what difference would it make for general population if real estate transactions were taxed?
How much revenue can be expected out of those transactions and how would that help the poor.

There are two sides of real estate transactions. One is the housing market in areas like Islamabad, Lahore or Karachi and the other is the whole country where transactions far exceed a few transactions that take place in selected areas of a few cities. Yes, a few transactions in big cities would take advantage of that but most of the advantage would go to people who buy and sell new and small homes. By not taxing real estate, the government has provided incentive to the real estate developers all over the country not just a few in Isloo.
I think criticism of a government should be constructive and not vindictive because you don’t like General Musharaf and his entourage.

#7
“The day all that land is brought under taxation, is the day Pakistan will start filling its coffers,”

Could you please enlighten us about the $ amount of Agriculture share in the GDP? And how taxing that share would “start filling coffers”

Taxing agriculture ``land`` would be an unmitigated disaster. Agriculture subsidies are being phased out and the poor farmers expect a reduced income already. If you tax now, the rate of return will go down even further. Why people forget that besides a few huge landowners, most of the rural population consists of poor farmers, day laborer, and landless peasants? It is easy to comment on Agriculture tax from a room in Toronto but think about the guy who spends most of his day in the scorching Multan or Sukker’s sun that turns a man’s skin into leather.

As I understand it you don`t bring ``Land`` under taxation you bring the Income under taxation.

Re: # 2

Yeah!.Only you paks keep bleating about it.Read this..................

India `tops for Asian investment`

India`s economy is growing fast
India has come out as a top Asian destination for investment in a survey of fund managers` top picks.
The survey, carried out by the Reuters news agency, found that over the next three months India tied with Taiwan as managers` favourite.

Over the longer timeframe of a year, India came second only to China as the best place to put clients` money.

China`s attraction, managers said, was growing consumer demand, while in India the prospect of solid reform appealed.

``We have been overweight on India... on all our portfolios for a long time,`` Alex Boggis, director at Aberdeen International, told Reuters.

India`s economy is growing at about 7% a year, while China is continuing to expand at about 9% a year - with Beijing keen to move the momentum of growth from asset investment towards consumer spending.

Reuters asked managers at ten institutions what their favourite destination for investment was over the next three months and over the next year.

On the short timeframe, India and Taiwan were each the top pick of 20% of the votes, while on the longer horizon China came top on 30% with India in second place with 20%.

http://news.bbc.co.uk/2/hi/business/4077026.stm

By a gigantic margin, the most protected wealthy class in Pakistan, are the large landowners. Everything in Pakistan is taxed, and in many case taxed heavily, except large land holdings.

One can debate the reduction of tax on 1800 CC cars by a few percent, but at least the thing is taxed. What about the thousands of acres of, ``farmland`` that is concentrated in the hands of a few hundred families?

The day all that land is brought under taxation, is the day Pakistan will start filling its coffers, considering the fact the Pakistan is an agricultural country.............

The current financial team has done an excellent job, over the past five years. There can be improvements and vested interests always have some influence. But these guys are quite sharp. 8.4% growth is no joke; especially for an economy which was almost bankrupt, at one time...........

Interestingly, much of this budget actually caters to the Chowk crowd and the lifestyles they (we) enjoy.............large cars, cell phones etc......

I agree with most of Shakir`s gripes...But there can be no fair budget presented unless the massive scams being purported by the housing schemes and real-estate business are documented and taxed....Most of the wealth being generated in the country is being invested in real-estate which is making the basic need of owning a house further out of reach from every middle class family (the lower class person is just SOL!)...This is compounding the gap between the haves and have-nots even more, creating ever-more dangerous class schisms in the country.

Why don`t Musharraf/Shoukat/Ayub tax real-estate transactions? Because if they did, then all the massive gains in property values, in which every civilian and military official worth their salt is involved, would come crashing down to earth. That is where they hide all their wealth, legal or illegal and they would never let go of this tax haven....If you don`t believe this then just try going to any cantonment or KBCA office and you will see how this scam of galactic proportions is being wreaked upon the people of Pakistan...No budget will be fair, and no real development will take root unless the billions gained from real-estate and stock transactions are documented and forcibly taxed....

Shakir -

You are one of my favorite writers. I immensely enjoy reading your column in The News.

However, I do not agree with your assessment of the current budget. The fact that Pakistan’s economy grew by 8.4% and the Development allocation increased by 35% is nothing to sneeze at. There’s evidence to suggest that, as in China and India, a rising tide lifts all boats, that wealth is top heavy, and that money trickles down not up. Keep in mind, though, that economic results have a lag time and that cycle takes a lot longer than, say, the movement of a stock price. What we are witnessing in China today was initiated 25 years ago.

Based on historical data, can you cite an example of an economic model implemented in a country when the budget was poor-friendly that resulted in rapid economic growth for that country?

abay trickle down works.......

back during the rule of your beloved democrats, all you had to do get a mason (or plumber) in Islamabad was to drive to peshawar moRe and your car would be swarmed by literally hundereds of them (actually, that`s what you had to do to pick up gori gori afghan prostitutes too, but that is another story)

With all the construction going on now, it is almost impossible to find a skilled mason at peshawar moRe....... (again, the gori gori afghan chicks....... another story)

The grandson of the dictator who ruled the 60`s shows such pride in what he`s doing. As if he`s continuing his grandad`s incomplete policies today. Such supply side economics sound so retarded. But they suit the grandsons of retarded freakin` dictators.

Pakistani economy is taking off..... you nay sayers can go sit on a cactus!

Although they are in this Bussiness .......for a very Long Time....

But only recently they have come into the limelight...

so Its a New Exposure...... Lets compare it to being say like a New Industry
and New Industries do need Protection...... don`t they... ??