syedfaisal

December 17, 2010

Tax Culture or Manorialism?

Filed under: Economy, politics, thoughts — Tags: , , , , , , — syedfaisal @ 7:01 pm

Before the concepts of agrarian and market economies, ancient societies especially the Roman Empire used to have a system based on Manorialism. In that society ruling elite comprising mostly of feudal elite and others used to control the land resources of the state through their political and military influence. The ruling elite support their finances and lifestyle by collecting obligatory contributions from the peasants and slave population under their jurisdiction. The contributions were in the form of coins, mandatory labor or even in the form of usable items and kinds. The dependent in return only used to get the right of living, earning just enough to live and a false sense of security.

The way situation in Pakistan is going, it seems we are moving very fast in backward direction of time to the point where Manorialism was at its peak and few lords used to enjoy enormous economic and ruling power. Recent debate on imposing new taxes or increasing the percentages of the old one to serve the expenses and corruption of our ruling elite is a good example of this.

The reality of our situation is that few classes of our people are working like bonded labour to pay most of the taxes so that they can ensure their living and also serve the ruling classes of the state. The Tax to GDP ratio debate and the methods which are devised to increase it in order to bring it to so called international standards seems to be leading a common salary class person in a position where he will only be able to serve the ruling elite with his hard work and his own survival will be just enough to keep him available for work.

Read complete :  http://infocrats.org/mag/2010/12/economy/tax-culture-or-manorialism/

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