March 6, 2012
By Raja Zahid Raza

The dismal state of democracy in Pakistan, amongst many other factors, is also due to lack of self-regulating norms and transparency within the political parties. It is sad to note that political parties, despite criticism from everyone, are not ready to introduce democracy within their structure and working.
Unless these parties reform themselves by introducing fundamental changes in their working, there is no hope for sustainable democratic set-up in Pakistan. In all established democracies, political parties regularly hold elections within their ranks and files, prepare and publish their audited accounts, file tax returns, disclose names of donors before the Election Commission as well as file details with evidence of expenditures. All these elements are conspicuous by their absence in our political culture

Since long, it has been highlighted in Pakistan that the self-styled champions of accountability do not present themselves in a transparent manner. This is why they cannot inspire and convince others to follow suit.

Enjoying extraordinary privileges and perquisites, living standards of judges and generals (courtesy taxpayers’ money) create an impression that they are above the law. Politicians use this as a pretext and justify corruption in their ranks. Politicians blame the ‘system’ for all these maladies without realising that they have the main responsibility to change the system. Nothing will change unless they first bring transparency and governance within their parties.

Politicians have to act responsibly in all spheres whether in power or in opposition. Their role is pivotal for effective working of institutions of the State. Being role models, it is imperative for them to show others by their conduct, the supremacy of rule of law. If they indulge in corruption and malpractices, the entire political system becomes discredited.

Once in power favoring the near and dear and/or amassing wealth and power through unlawful means is what destroys democracy. While in power, they should demonstrate by their actions that they are custodians of public faith and are bound to work for public cause and not personal gains. Why have they failed to do so in Pakistan?

The main cause is authoritarians within parties, no respect for merit and lack of accountability. Presently, almost all political parties in Pakistan are controlled either by one man or a handful of individuals with workers showing loyalty to their chief rather than to the party’s manifesto. Obviously, in return, they expect personal favors from the chief when the party is in power.
If Pakistan has to come out of this present mess, democratisation of political parties is a must. Political life of an individual requires that he complies with all laws of the land — one demonstrative proof of it is to discharge fiscal obligations. If a politician does not pay his taxes honestly how can he expect ordinary man to do the same?

Lack of tax culture in Pakistan has its roots in the open defiance of tax laws by the rich and mighty. Not only have they kept themselves outside the tax ambit, they also take pride in telling others that tax officials dare not question them.
Article 77 of the Constitution pronounces that no tax shall be levied except by or under the authority of Parliament. If anyone commits negligence in paying taxes, he in fact, violates Article 5 which says: “Loyalty to the State is the basic duty of every citizen.” In this context, the duty to pay taxes is a Constitutional obligation. At the same time, it is the duty of the State as ordained in Article 3 to ensure “the elimination of all forms of exploitation and the gradual fulfillment of the fundamental principle, from each according to his ability to each according to his work”.

Elected members and those striving to become so, first of all, must show the voters that they are tax-complying individuals. If they fail to do so, obviously they cannot be considered eligible to contest elections. It is the responsibility of a political party to ensure that its election candidates have filed their tax returns. All existing political parties in the coming elections, before distributing tickets must obtain evidence of tax returns from the aspiring candidates. This would be a first step towards democratisation of the political culture in Pakistan.

In Pakistan, law is in existence for filing annual income/expenditure statements with the Election Commission but no party really cares about it. Authoritarianism is visible in all political parties and any dissident voice is dealt with undemocratically. In most cases, the man becomes persona non grata who in reaction either becomes a turncoat or forms a separate block.
For political parties there should be a provision in the Income Tax Ordinance 2001 making it incumbent on them to file their tax returns. Their income should be exempt from tax, provided they file returns voluntarily and present audited accounts for scrutiny.

Such provisions exist in tax laws of all the major democracies. In India, not only does this law exist [section 13A of Income Tax Act, 1961] but recently Chief Election Commissioner of India, S Y Qureshi, asked the Indian Central Board of Direct Taxes (CBDT) to scrutinise accounts submitted by political parties.

In Pakistan, it is high time to make filing of tax returns mandatory for all registered political parties, which should be scrutinised and made public by any citizen having the right to question their veracity. Donations received by parties should qualify for tax credits as they, being non-profit organisations all over the world, are considered as entities working for public purposes. In Pakistanwe have not yet promoted this idea that political parties should be exemplary non-profit organisations fully committed to further the cause of public welfare.

This idea is important from many perspectives. Once people associate themselves with a particular party having clear objectives and aims, they also extend financial support for their achievement. Meaningful participation of masses in democracy and electoral process can only be ensured if they have the right to question their leaders about use of their money.
Resistance against establishment of an independent accountability authority in Pakistanis also due to the fact that the ruling trio knows that any such body would expose their corruption. The way forward is that political parties should be forced to keep proper accounts, get them audited by reputed firms and file income tax returns. The process of filtration within the parties is a necessary step towards a transparent and democratic setup.

Source: pkarticleshub