Pakistan lawmakers rushing to pay higher taxes after Panamagate

(Photo: Getty Images)


In the wake of the Panamagate case, Pakistani officials have recorded a stunning hike in taxes paid by lawmakers, from a paltry 15 to a whopping 3,852 per cent rise in individual cases, authorities said on Thursday.

Finance Minister Ishaq Dar launched the fourth tax directory of parliamentarians prepared by the Federal Board of Revenue (FBR).

It shows that lawmakers, including members of the federal cabinet, paid Rs.396 million in taxes during tax year 2016 an increase of Rs.86 million or 28 per cent, The Express Tribune reported.

Tax contributions by members of the Senate rose to Rs.223 million up by 30 per cent.

Members of the National Assembly paid more than Rs.173 million during the same period up by 26 per cent.

Embattled Prime Minister Nawaz Sharif, whose political future will be decided tomorrow by the Supreme Court when it will announce its much-awaited verdict in the Panamagate case in which he and his family are accused of corruption, paid Rs.2.52 million in taxes, an increase of 15 per cent or Rs.328,872 over the previous year.

Sharif, who has been the prime minister of Pakistan for a record three times, faces the risk of being disqualified if the court finds him guilty of corruption and money laundering.

He leads Pakistan's most powerful political family and the ruling PML-N party.

Cricketer-turned politician and Pakistan Tehreek-e-Insaf chairman Imran Khan paid Rs.159,609 in income tax, which was higher by 109 per cent or Rs.83,356 over the previous year.

Jahanghir Khan Tarin, another PTI leader, paid the highest income tax Rs.53.7 million.

His contribution surged by 42 per cent or Rs.16.1 million over a single year.

The fiscal year 2015-16 closed three months after the Panama Leaks created ripples in Pakistan's politics.

The release of tax details coincide with the final decision by the court in the case.

Since the FBR started publishing the tax directory of parliamentarians four years ago, tax contributions by members of the National Assembly and Senate increased by more than 200 per cent.

There are still as many as half a dozen members of the federal cabinet who did not file their income tax returns for the tax year 2016.

Instead of taking legal action against them, Finance Minister Ishaq Dar today gave them one month more to file their tax returns.

Commerce Minister Khurram Dastgir Khan, Minister for Overseas Pakistanis Syed Sadaruddin Shah Rashidi, and Ports and Shipping Minister Mir Hasil Khan Bizenjo are prominent among those who did not file their income tax returns for a second consecutive year, according to the tax directory.

Federal minister for National Food Security Sikandar Hayat Bosan and Minister for Housing and Works Akram Khan Duranni are also among those who did not submit their income tax returns.

Tax contributions by cabinet ministers increased by more than 70 per cent to Rs.28.6 million against the preceding year. But a few federal ministers and parliamentarians paid taxes on their salaries they received as the members of parliament.

Of the 1,169 members of the Senate, National Assembly and four provincial assemblies, as many as 159 legislators did not file tax returns.

Under the law, filing income tax return is binding on all citizens earning more than Rs.400,000 a year and non-filer parliamentarians may face serious consequences if FBR chose to act against them.

Several lawmakers and cabinet ministers saw a dramatic increase in the amount of taxes they paid, which either reflected an abnormal increase in their incomes, or willingness to pay their taxes.

PTI's Senator Mohsin Aziz paid Rs.8.9 million in income tax which amounted to an unbelievably high 1896 per cent or Rs 8.5 million more than the preceding year.

JUI-F's Senator Mohammad Talha Mahmood paid Rs.32.5 million in income tax also higher by Rs.18.5 million or 131 per cent.

Senator Talha's name also appeared in Panama Leaks.

Senator Rozi Khan Kakar paid Rs.49.9 million in income tax, showing a stunning growth of 312 per cent or Rs.37.8 million more than the preceding year. Senator Ishaq Dar's tax contribution increased 18 per cent to Rs.4.6 million.

Senator Aitzaz Ahsan's tax contribution declined 44 per cent to Rs.13.9 million. Senator Barrister Farogh Naseem's tax contribution increased by 74 per cent to Rs.20.3 million.

Senator Taj Mohammad Afridi also paid Rs.6.4 million less than his previous year's contribution that stood at Rs.35.3 million.

The income tax paid by Minister of State for Interfaith Harmony Pir Aminul Hasnat Shah increased by 3,852 per cent to Rs.4.6 million in 2016. In the preceding tax year, the minister paid just Rs.116,711 under the same head, according to FBR's record.

Punjab Chief Minister Shehbaz Sharif paid Rs.9.53 million against Rs.7.6 million in income tax last year an increase of 25.4 per cent.

NA Speaker Sardar Ayaz Sadiq paid Rs.104,853 in income tax against Rs.1.4 million tax paid in 2015.

Leader of Opposition in NA Khursheed Shah paid Rs.124,215 in income tax against Rs.100,054 last year.

Sindh Chief Minister Murad Ali Shah paid Rs.743,471 income tax against Rs.661,661 in the previous year.

Khyber-Pakhtunkhwa Chief Minister Pervaiz Khattak paid Rs.813,869 against Rs.766,480 last year. His counterpart from Balochistan, Sanaullah Zehri paid Rs.1.4 million against Rs.1.28 million last year.

Former Information Minister Pervaiz Rashid paid Rs.137,271 against a mere Rs 3,611 last year. Interior Minister Chaudhry Nisar Ali Khan paid Rs.1.2 million – an increase of 40 per cent.

Petroleum Minister Shahid Khaqan Abbasi, who also owns a controlling stake in Air Blue, paid Rs.2.7 million in 2016, up by 24 per cent.

Water and Power Minister Khawaja Asif paid Rs.831,986 against just Rs.466,630 in the previous year. Planning Minister Ahsan Iqbal contributed just Rs.82,440.

Railways Minister Khawaja Saad Rafique paid roughly Rs.4 million in income tax, or 35 per cent more than the previous year.

Senate Chairman Raza Rabbani paid Rs.492,201 against Rs.730,107 in the previous year. His deputy Maulana Abdul Ghafoor Haideri paid Rs.417,404 against Rs.202,666 in income tax in 2015.