What is Tax for the Rulers and the Subjects?
The states either kingship or democracy has always regularly imposed taxes on the subjects or the people. Tax is compulsory contribution to state revenue, levied by the government on people and business. This has always been the bone of contention between the state and the people. This article looks into the Taxation in Pakistan and its effect on the people of the country.
What is Tax for the Rulers and the Subjects?
Oxford dictionary explains “Tax” as “a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions”.
In simple words, the Tax is “an amount of money that a government requires from people to pay according to their income, the value of their property etc, and that amount are utilized by government for carrying the functions of the state.”
The word 'tax' is derived from a Latin word “Taxare” it means to estimate or value and history reflects that it existed during Roman Empire period. The first known taxation took place in Ancient Egypt around 3000–2800 BC; and not much is known about human history earlier than that period.
It therefore can be said that governments of all kinds have been collecting tax from the people since known human history. The last 4000 years of known human history reflects that they were kingdoms, empires and fiefdoms. The relationship between the government and people was more of the “Ruler” and “the Subjects” and there were compulsions and exploitation and ordinary humans, being “the Subjects” could have done nothing against the apparatus of the kingdom, empire or fiefdom. Even forced labour was also employed.
The kings were challenged by some other powerful person or a group of persons and the kingships were changed from one hand to another; however the method of collecting Tax had not affected or changed. The imposition and collection of tax has always been employed in a very high handed manner and following poem reflects the sentiments in a true manner.
The Tax Poem
Tax his land, Tax his bed, Tax the table at which he's fed.
Tax his tractor, Tax his mule, Teach him taxes are the rule.
Tax his work, Tax his pay, He works for peanuts anyway!
Tax his cow, Tax his goat, Tax his pants, Tax his coat. Tax his ties, Tax his shirt, Tax his work, Tax his dirt.
Tax his tobacco, Tax his drink, Tax him if he tries to think.
Tax his cigars, Tax his beers, If he cries tax his tears.
Tax his car, Tax his gas, Find other ways to tax his ass.
Tax all he has, Then let him know, That you won't be done till he has no dough.
When he screams and hollers, Then tax him some more, Tax him till he's good and sore.
Then tax his coffin, Tax his grave, Tax the sod in which he's laid.
Put these words Upon his tomb, 'Taxes drove me to my doom...'
When he's gone, Do not relax, Its time to apply the inheritance tax.
The above is taken from https://www.adamsmith.org/blog/miscellaneous/the-tax-poem
The gory drama of taxation went on and on and the difference was noticed only when people resisted, protested and some God fearing, human friendly, just and kind ruler embarked upon the throne. Such rulers imposed Tax reasonably, fairly and economically and that too from the rich mainly. Local taxes were left to local leaders for better utilization and meaningful employment of expenditure.
Some 300 years ago the humans revolted against the kingship and democracy started to establish foot hold in various parts of the world. The modern concept of statehood i.e. Nation States has been conceptualized since last 100 years, in which the principle “people are the state” and organs of state and functions of governments has been employed. It has been conceptualized that “No Taxation without Representation”, and therefore it has been marked as a fundamental element that “the economics of taxation will be designed as an efficient tax system that would be fair, equitable, and simple to understand for the people of state” and “ the expenditures by government will be subject to people’s approval and audit”.
The only event when tax was imposed with sanity and that too on rich only was the occasion when religious dictum was imposed by Prophets of the Al Mighty Creator ALLAH. It was last witnessed in “State of Medina” under Prophet Muhammad (PBUH) and his four caliphs (RA) as “Zakat and Usher” on Muslims and “ Jizya” for non-Muslims, which were only an annual tax. No other tax was employed.
The State of Pakistan and Taxation Puzzle
The country Pakistan got independence in 1947 but it carried forward and employed the executive functions of the state in the similar fashion as were employed by the British Empire over the “Subjects in India”. The principle of “No taxation without representation” has been continually ignored, violated and dictatorial policies imposed by force. The country was liberated but the silent / hidden rules / regulations in violation of constitution were employed in a manner that the wrest while British were replaced by government executives as “the rulers” and the People of the Country, who by definition are the “State” themselves have been converted into “the Subjects”.
The cacophony has turned country into the grand mess and ungovernable because the heavy taxation imposed and revenue collections are far less than the loans taken by the “Loyal Patriotic” democratic elected and non-elected executives for shenanigans and pompous. The circus must stop or “state” will fail.
The sign of public despair is that before today, there was never such helplessness and despondency on the faces of Pakistanis. Such anxiety, depression, thoughtlessness and unemployment are not only showing on the faces of the poor but also on the faces of middle class. If one talks about inflation in any gathering, a few broken phrases come out of a person's mouth, restraint slips from the hand and tears flow from the eyes.
Wither public tolerance? Are the people helpless?
People want to shout, cry and curse the government; people want to hold the ruler's neck, but they are currently gulping their anguish and their grief inside. And this is eating them from inside as termite. Pakistan is a traditional society, where the entire financial burden of the family is mostly borne by a head of the family or most able man. In this inflation and unemployment, a poor man does not understand how to tell his family that things and expenses are becoming beyond his ways and means of rightful earnings.
On the other hand, the ruling elite of Pakistan are still sitting enjoying in their AC installed cold rooms and imported vehicles; and their only concern is governing the masses by hook and crook and pleasing the Western masters. In these circumstances rebellion becomes obligatory. When that will be, time will tell; But history is witness that it will happen sooner or later.
