Afzal Ali Shigri The
writer, a former IGP Sindh, belongs to Gilgit-Baltistan.
THE Gilgit-Baltistan (GB)
Council has tried to implement another federal tax under the income tax law it
adopted through Act-IX of 2012. This was approved in January 2013 by the
government of GB that also established the inland revenue department for
implementation of this law.
The impact of the new tax laws
became apparent when various government departments started withholding advance
income tax against payments made to its employees and contractors involved in
development projects. Once it was expanded to banking transactions and mobile
phone usage, the commercial sector too felt the effect of this taxation and its
financial implications for the local economy and commodities’ prices.
With the GB Council being
largely distrusted by the local populace, the people were not ready to accept a
tax imposed by this institution. It would appear that the Gilgit-Baltistan
Empowerment and Self-Governance Order, 2009, has created an artificial legislative
structure based in the Ministry of Kashmir Affairs & Gilgit-Baltistan in
Islamabad, without a credible link to the local population.
This body is empowered to
legislate on 55 key subjects that cover all kinds of federal taxes and duties.
However, the tax is not accepted by the people of GB as the constitutional
status of this region remains unsettled despite repeated demands of residents
and the elected local legislative assembly, leading to the rejection of the
newly imposed taxation by a non-representative body. The government of Pakistan
has persistently refused to address this vital issue because this region is
theoretically part of Jammu & Kashmir and its status has to be determined
through a plebiscite according to a UN resolution
The Gilgit-Baltistan
Council is a typical creation of a colonised mindset.
Due to the conundrum regarding
the status of GB at the policy level, the federal government has de facto
control of the area and has been legislating for GB through presidential
decrees that are now being questioned by residents irked at the inattention to
their demands for a resolution to the problem of GB’s status being hobbled by a
notional linkage to the Kashmir issue.
Despite a very rational demand
for an interim merger by the local elected assembly until the resolution of the
Kashmir dispute, the federal government has refused to accept even this
plausible out-of-the-box solution. Resultantly, flawed institutions designed by
bureaucrats incapable of appreciating the political nuances of their decisions
have been established. The GB Council is a typical creation of a colonised
mindset imposing imperialist solutions on the natives.
The tendency to control and
administer is apparent in the structuring of the GB Council that has the
following membership: i) the Pakistani prime minister; ii) the GB governor;
iii) six members nominated by the Pakistani prime minister, including the
minister for Kashmir Affairs and Gilgit-Baltistan; iv) the GB chief minister;
and v) six members elected by the local Legislative Assembly.
Of the 15 members of this
council, nine are Pakistan government nominees, while only six are elected
indirectly by the local Legislative Assembly, which, too, is under the strong
influence of the federal government. The legislative process by this
compromised body takes the form of enactment of laws essentially drafted by
babus and rubber-stamped by the federal government.
The people of GB who fought a
year-long bloody battle to join Pakistan resent and resist lawmaking by a body
that has no legal or moral authority to legislate on their behalf. To make
matters worse, this body has no interest in the affairs of the region as the
prime minister has no time and the other members lack interest, thereby leading
to practically making it dysfunctional with rare meetings and rubber-stamping
of agendas prepared by the babus of the Ministry of Kashmir Affairs and GB.
The council is not a
representative institution and its composition negates the internationally
recognised principles/norms of a legislature; therefore the demand of the
people for the repeal of all taxation laws is fully justified. The gist is that
while there is no objection to taxation, it must be done by the elected
representatives of an area. The people of GB understand that empowerment also
entails responsibility, but unilateral taxation cannot be accepted by an
institution that enjoys no credibility.
This neglect and ignoring the
demand of the people have been accentuated as the new taxes recently triggered
a protest by civil society and the business community and was supported by the
political parties. There was a complete shutdown of all markets for five days
that was followed by a big dharna in Gilgit city. The protest for the first
time was widely covered in the local and international media. A high level team
led by the GB senior minister and members of the local assembly held a meeting
with the Awami Action Committee that was leading the protest and an agreement
was reached for revisiting the Adaptation of Income Tax Act by the GB Council.
The Pakistani government has
formed a committee headed by MNA Malik Ahmed Khan to negotiate with the Awami
Action Committee. The dharna ended but a token protest continues till a final
decision is taken. Their most significant demand is the transfer of taxation
and mineral policy to the local assembly. It is obviously a precursor for
subsequent demands for a constitutional status of a province.
The principle of ‘no taxation
without representation’ was established in 1775 when the British tried to tax
America without representation and triggered the American bid for independence.
Even the British Empire collapsed when they failed to address the genuine
aspirations of the people of the subcontinent through artificial governance
structures created by the India Act of 1909, 1919 and 1935 that partly included
the elected representatives in new institutions to prolong Britain’s own hold
on the people. As the writer and philosopher George Santayana has wisely noted
“those who do not learn history are doomed to repeat it”. It is time to act
sagaciously instead of repeating historical errors.
The writer, a former IGP
Sindh, belongs to Gilgit-Baltistan.
Published in Dawn,
January 2nd, 2018
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