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Friday, March 15, 2024

Will CJP re-impose tax on cellphones cards?

News Analysis |

Chief Justice of Pakistan (CJP) Mian Saqib Nisar has given an impression of re-imposing the tax on cell phone cards in order to raise funds for the construction of dams.

The CJP–who has been on a private visit to Britain for dams’ fund-raising– was addressing a ceremony held by UK Pakistan Chamber of Commerce and Industry in London when he said that, however, it will not be appropriate to impose taxes for the dam funds.

Experts suggest that this is an alarming situation and Pakistan needs to focus on developing a comprehensive policy mechanism to address the challenge.

The court earlier had suspended the withholding tax on recharge of prepaid mobile phone cards by service providers and learned that Rs3 billion were saved per month through the suspension. “If the people of Pakistan allow us then we will re-impose the tax on the mobile phone cards and collect money for dams,” the CJP said.

The CJP has reportedly asked the nation to give its views on the proposal. If the majority of Pakistanis want it to be implemented the court will pass an order on the re-imposition of the tax which will be included in funds being collected for the construction of dams.

The top judge was not happy over the performance of previous governments since none of them ever tried to build any ‘uncontroversial’ dams. He also expressed hope that “one day, all four provinces will agree on construction of Kalabagh Dam”.

Read more: Supreme Court of Pakistan suspends mobile card taxes

CJP also instructed the nation to take practical steps in order to save water from being wasted, adding that climate change reduced rains across the world, including Pakistan, which resulted in a sharp decrease in the underground water level.

It is reported that Pakistan is facing an imminent water crisis as official projections show the country, whose population has increased fivefold since 1960 to some 207 million, will run dry by 2025 when it will be facing an “absolute scarcity” of water with less than 500 cubic meters available per person.

Now it is to be seen whether the nation agrees with what the CJP has said or not. If the tax is re-imposed it will help to generate revenue to much-needed dams in the country.

Reports suggest that when Pakistan was made, every Pakistani had 5600 cubic meters of water. Today that stands at only 1000 cubic meters. PM Khan recently thanked the Chief Justice of Pakistan for making the nation aware of the water crisis. But, at the same time, Mr. Khan clarified that it was the responsibility of the civilian government to construct dams.

A report developed by the United Nations Development Programme (UNDP) as well as the Pakistan Council of Research in Water Resources (PCRWR) has alarmed that the country will reach absolute water scarcity by the year 2025.

The UN report also highlights that the most immediate threats would be water unavailability to the masses and Neil Buhne, UN Humanitarian Coordinator, Pakistan said, “No person in Pakistan, whether from the north with its more than 5,000 glaciers, or from the south with its ‘hyper deserts’, will be immune to this.”

Read more: CJP questions the illegal high taxes on mobile users

Moreover, the reports are attributing the crisis to climate change and poor management around the country. Due to the lack of attention and political will in Pakistan, there have not been new dams to manage the country’s water crisis. Experts suggest that this is an alarming situation and Pakistan needs to focus on developing a comprehensive policy mechanism to address the challenge.

Now it is to be seen whether the nation agrees with what the CJP has said or not. If the tax is re-imposed it will help to generate revenue to much-needed dams in the country.