Shorten promises to reverse budget cut to the ABC


Michelle Grattan, University of Canberra

Bill Shorten has moved to make the ABC an election issue, promising to reverse the Turnbull government’s $83.7 million budget cut and to guarantee funding certainty over the broadcaster’s next budget cycle.

Ahead of appearing on the ABC’s Q&A program, Shorten and frontbench colleagues declared the Coalition had “launched the biggest attack on the ABC in a generation”.

In recent months Communications Minister Mitch Fifield has sent a stream of complaints to the ABC about stories, both online and on air, contesting facts and interpretations. The Prime Minister’s Office has also complained. Government frontbenchers and backbenchers frequently make cracks at or about the ABC, echoing a theme of many conservative commentators.

The ABC is also under constant attack from News Corp, driven by both ideology and commercial interests. The government has an inquiry underway into the ABC’s competitive neutrality, which was part of a deal with Pauline Hanson but also important in the context of News Corp’s argument about the government-funded ABC encroaching on financially strapped commercial media.

When the government made the $84 million budget cut – which took the form of a freeze to indexation – Treasurer Scott Morrison said “everyone has to live within their means”. Managing director Michelle Guthrie said that “the decision will make it very difficult for the ABC to meet its charter requirements and audience expectations.”

In a statement Shorten, communications spokeswoman Michelle Rowland and regional communications spokesman Stephen Jones said Labor’s commitment would ensure the ABC could meet its charter requirements, safeguard jobs, adapt to the digital environment “and maintain content and services that Australians trust and rely on”.

They said the Coalition since 2014 had “overseen $282 million in cuts to the ABC that has seen 800 jobs lost and a drop in Australian content and services”.

“Labor will stand up for the ABC and fight against the conservatives’ ideological war against our public broadcaster,” the statement said.

The promised investment “demonstrates Labor’s commitment to the ABC’s independence and to maintain the ABC as our comprehensive national broadcaster.

“Now, more than ever, Australians need the ABC – our strong, trusted and independent public broadcaster.

The Conversation“At a time when too many Australians feel disengaged from their democracy and distrustful of their representatives, Labor wants to restore trust and faith in our institutions. Part of restoring trust is is supporting a healthy public interest media sector, and protecting that trusted institution – the ABC”.

Michelle Grattan, Professorial Fellow, University of Canberra

This article was originally published on The Conversation. Read the original article.

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Budget policy check: do we need company tax cuts?


Janine Dixon, Victoria University

In this series – Budget policy checks – we look at the government’s justifications for policies likely to be in this year’s budget and measure them up against the evidence.

In this piece we look at the need for company tax cuts.


Business investment in Australia declined steadily for four years after peaking in 2013. In early 2016, the Turnbull government settled on a series of company tax cuts as their preferred policy to reinvigorate business investment and the economy.

Our modelling shows that a cut to the company tax rate for large businesses will indeed lift foreign investment in Australia, driving an economic expansion and an increase in pre-tax wages, but there is more to the story.

Like many policy changes, there are winners and losers. The give-and-take nature of the tax cut means that the “losers” from the tax cut will be Australian-owned businesses and the Australian government. We find that despite the expansion in GDP, the average income of the Australian population (a more suitable measure of the material welfare of the population) will fall.

Do we need investment to maintain jobs and economic growth?

The jobs growth figures last year – we all know now, more than 1,100 jobs a day – that’s had a really big impact on our economy and we can expect that to continue and now lead to – I would expect – better wage outcomes as long as businesses keep investing and businesses can keep remaining competitive.

– Treasurer Scott Morrison

More investment creates more buildings, equipment and intangible assets that enable workers to be more productive and, in theory, earn higher wages.

If investment is weak for a prolonged period, job opportunities are reduced and wage growth will weaken.

In a well-functioning economy, population growth and technological progress naturally attract investment. When investment only keeps pace with population or employment growth, wages stagnate. For wages to grow, investment needs to be above this level. This happens when there is technological progress, generating the higher returns which attract the level of investment needed.

Australian investment depends largely on foreign finance, so world economic conditions, including rates of corporate tax in other countries, also play a role.

In reality the link between investment and wages is not always clear cut. If unemployment or underemployment is high, investment may lead to growth in jobs without wage growth.

Businesses might also make profits in excess of a “normal” rate of return. These profits exist when new businesses struggle to break into a market dominated by a few large players, and can be an impediment to wage growth.

Even if you do accept that higher investment does lead to higher wages, giving tax cuts to companies to stimulate investment is not justified on this basis.

If company taxes are cut there will be significant costs to government revenue that amount to a “windfall gain” to the (mostly foreign-owned) investments that have already been made on the basis of the 30% tax rate. On balance, the positive impact on growth and wages is not enough to justify the loss of this revenue.

Is there a problem with business investment in Australia?

Business investment is critical to economic growth. When firms are empowered to invest in new productive capacity and technology, it supports innovation and helps create new opportunities and employment for Australians.

– Treasurer Scott Morrison

Business investment is now showing signs of picking up. In a speech late last year, Reserve Bank deputy governor Guy Debelle saw “signs of life” in investment growth, particularly in the services sector and in infrastructure projects completed by the private sector on behalf of the public sector.

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A Grattan Institute report identifies four very good reasons for the four-year decline. These include a return to “normal” investment following the mining boom and an overall decline in the amount of money needed to create capital goods in most industries. The report also points to an ongoing shift towards households spending more on services such as retail, cafes, and professional services and slow economic growth overall.

Viewed in this light, there are plausible and benign reasons underlying the decline in investment. These suggest that it is not a large enough problem to justify “repair” in the form of a costly tax cut.

What’s the verdict?

Certainly business investment has weakened over the last five years, and along with this we have seen weak wage growth. It would be foolhardy to argue against the need for more business investment. Jobs and growth underpinned by a healthy level of investment are essential aspects of a modern society.

But cutting the company tax rate is not the way to go. It may deliver more business investment and economic activity, but by forgoing taxation revenue from existing investment, it comes at a cost to the average income of the Australian people.

The ConversationTo reap the benefits of strong business investment without a costly tax giveaway, Australia must continue to play to its strengths. Reducing the government revenue base through a cut to company tax will undermine the sort of stable, prosperous society that underpins the world-class environment that we strive to offer all investors.

Janine Dixon, Economist at Centre of Policy Studies, Victoria University

This article was originally published on The Conversation. Read the original article.

Poll wrap: Labor maintains its lead as voters reject company tax cuts; wins on redrawn boundaries



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The results of next week’s Newspoll will be eagerly awaited on both sides of the House.
AAP/Mick Tsikas

Adrian Beaumont, University of Melbourne

A ReachTEL poll for Sky News, conducted March 28 from a sample of over 2,000, gave Labor a 54-46 lead, unchanged since late February. Primary votes were 36% Labor (down one), 34% Coalition (up one), 10% Greens (down one) and 7% One Nation (steady).

ReachTEL uses respondent allocated preferences. The primary votes imply a swing to the Coalition, though that swing is from the ReachTEL taken the day before Barnaby Joyce resigned as Nationals leader. Analyst Kevin Bonham estimated the February ReachTEL as 55.5% two party to Labor by last election preferences, and this ReachTEL at 54.2%.

Malcolm Turnbull led Bill Shorten by 52-48 as better PM in ReachTEL’s forced choice question (53-47 in February).

By 56-29, voters opposed tax cuts for big companies. 68% thought it unlikely that tax cuts would be passed on to workers, with just 26% thinking it likely. The government was unable to pass its company tax cuts through the Senate before parliament adjourned until the May budget.

By 64-25, voters did not want Tony Abbott to return as Liberal leader after the next election. 37% opposed Labor’s plan to alter the tax treatment of franking credits, 27% were in favour and the rest were undecided.

Newspoll: 53-47 to Labor

In last week’s Newspoll, conducted March 22-25 from a sample of 1,600, Labor led by 53-47, unchanged since early March. Primary votes were 39% Labor (up one), 37% Coalition (steady), 9% Greens (steady) and 7% One Nation (steady).

As has been much discussed, this Newspoll was Turnbull’s 29th successive loss as PM, just one behind Abbott’s 30 losses. Labor’s primary vote was its highest since Abbott was still PM, and the total vote for Labor and the Greens was 48%, up one point – the first change in the total left vote since August.

Turnbull’s net approval was up one point to -24, while Shorten’s improved three points to -20. Turnbull led Shorten by 39-36 as better PM (37-35 previously).

By 50-33, voters were opposed to Labor’s franking credits policy. I believe Labor has gained despite this opposition as those strongly opposed are likely to be Coalition voters anyway. In addition, Labor’s policy may give it more economic credibility as they may be seen as more likely to balance the books.

On Monday, The Australian released Newspoll’s February to March analysis. In Queensland, the Coalition improved from a 55-45 deficit in October to December to a 51-49 deficit. It appears Newspoll is now assuming One Nation preferences flow to the Coalition at about a 65% rate, consistent with the Queensland state election; previously they assumed the Coalition would receive just half of One Nation preferences.

With One Nation’s Queensland vote at 13%, the four-point gain for the Coalition is partly due to the changed preference assumptions. Under the previous method, Labor would lead in Queensland by 52-48 or 53-47.

Turnbull’s net approval with those aged 18-34 was just -3, compared with -20 overall, yet the left-wing parties dominated this age group with a combined 57%, to just 30% for the Coalition and 4% One Nation. Turnbull has been seen as a social progressive, restrained by the conservative Coalition base. Young people are far more likely to like Turnbull than they do the Coalition generally.

Turnbull’s persistent lead over Shorten as better PM can be explained by a lead with young people, among whom the Coalition would be crushed at an election.

Essential: 52-48 to Labor

Unlike ReachTEL and Newspoll, last week’s Essential moved two points to the Coalition, though Labor retained a 52-48 lead. Primary votes were 38% Coalition (up two), 36% Labor (down two), 9% Greens (steady) and 8% One Nation (steady). This poll was conducted March 22-25 from a sample of 1,027.

Only 21% understood a lot or a fair amount about franking credits. 10% said they received a cash payment from franking credits and 16% a tax deduction. By 32-30, voters supported Labor’s plan on franking credits.

Voters generally supported left-wing tax ideas, though they supported “cutting the company tax rate to 25%” by 40-30, in contrast to ReachTEL. Voters trusted the Coalition over Labor 28-26 to manage a fair tax system, with 31% opting for no difference.

By 79-12, voters thought there should be more regulation of Facebook, and by 68-22, they were concerned about how Facebook uses their personal information. Nevertheless, voters thought Facebook is generally a force for good by 45-37.

In the early March Essential, concerning the Adani coal mine, 30% supported the Greens’ anti-Adani position, 26% the Liberals’ pro-Adani position, and just 19% Labor’s murky position. 38% of Labor voters supported their party, 31% the Greens and 15% the Liberals. Other voters supported the Greens by 40-26 over the Liberals with 11% for Labor.

Voters supported regulating energy prices 83-7, creating a new Accord between business, unions and government 66-11, increasing the Newstart allowance 52-32 and company tax cuts 42-39. These proposed measures were all asked with a question phrased to skew to support.

By 65-26, voters supported same sex marriage (61-32 in October, before the result of the plebiscite was known).

Victorian and ACT federal draft redistribution

Last year, it was determined that Victoria and the ACT would each gain a House seat, giving Victoria 38 House seats, up from 37, and the ACT three seats, up from two. On Friday, draft boundaries were released.

The Victorian redistribution creates the new seat of Fraser in Melbourne’s north-western growth suburbs, which will be a safe Labor seat. According to the Poll Bludger, Labor also notionally gains Dunkley from the Liberals, and the renamed Liberal-held seat of Cox (formerly Corangamite) is very close.

Labor won the ACT-wide vote by 61-39 against the Liberals at the 2016 election, so the new ACT seat had to be a Labor seat.

In other changes to state representation, South Australia will lose a seat, falling from 11 seats to ten. The total number of House seats will increase by one, from 150 to 151. The new draft South Australian boundaries will be released on April 13.

At the 2016 election, the Coalition won 76 of the 150 seats, and Labor 69. The draft boundaries released Friday give Labor three extra notional seats, while the Coalition loses two. With the South Australian redistribution still to come, the Coalition has notionally lost its majority, and will require a swing in its favour at the next election to retain a majority.




Read more:
ReachTEL: One Nation voters prefer Abbott to Turnbull by over 3:1


The draft boundaries will go through a further consultation process before they are finalised. If an election is called before all boundaries are finalised, emergency redistributions are used. These emergency redistributions have never been used.

Batman byelection final results

The ConversationAt the March 17 Batman byelection, Labor’s Ged Kearney defeated the Greens’ Alex Bhathal by a 54.4-45.6 margin, a 3.4% swing to Labor since the 2016 election. Primary votes were 43.1% Labor (up 7.9%), 39.5% Greens (up 3.3%) and 6.4% for the Conservatives. The Liberals, who won 19.9% in 2016, did not contest.

Adrian Beaumont, Honorary Associate, School of Mathematics and Statistics, University of Melbourne

This article was originally published on The Conversation. Read the original article.

Government defers company tax cut vote for want of numbers


Michelle Grattan, University of Canberra

The government has been forced to put off a vote on its tax cut for big business after failing to secure support from the final two crossbenchers it needs to pass the legislation.

The deferral until the budget session in May is a bitter disappointment for the government, which had been hopeful of landing the legislation this week.

It needs nine of the 11 non-Green crossbenchers to pass legislation. It had seven on side but still needed Victorian senator Derryn Hinch and South Australian independent senator Tim Storer.

Hinch has most recently been talking to the government about trade-offs in the areas of help for pensioners, affordable housing, assistance for the older unemployed, and more action to combat paedophilia.

One source said Storer’s inexperience – he only arrived in the Senate last week – was a complication in finalising negotiations.

Storer said lower company tax should be part of broader tax reform. “This bill is a narrowly cast proposition of change to the overall tax and transfer system”, he said.

“I have held numerous meetings and received input from stakeholders including members of the public, South Australian businesses and business-groups, leading economists, national welfare groups, national business councils and their members” and “I am processing my consideration of this bill.”

The legislation is for the second tranche of the tax cuts, which is directed for big business. It would cost the budget A$35.6 billion, apply to companies with turnovers of more than $50 million annually, and bring the rate for them down from 30% to 25% by 2026-27.

Finance Minister Mathias Cormann told the Senate late on Tuesday that the legislation would not be debated further this week.

“It is a matter of public record that, as a result of the work that has gone so far, we have been able to secure the publicly stated support of 37 senators in this chamber for our business tax cuts legislation,” he said.

“Everybody knows we need 39. So, given that proposition and given that’s the situation we are in, the government has made a decision we will need to do some more work.”

He said the government thought it could get the numbers and so was “committed to keep working, to keep engaging”.

Cormann said the government intended to bring the legislation back to the Senate in the next sitting week – which is budget week.

Speaking to a function organised by the Business Council of Australia (BCA) at Parliament House, Malcolm Turnbull said the government was still two votes short and encouraged the businesspeople to keep talking to the crossbench.

He said the government wasn’t fighting for higher dividends or higher remuneration for executives but to give companies every incentive to invest and grow, creating more jobs and higher-paid jobs.

Earlier on Tuesday, Opposition Leader Bill Shorten pledged a Labor government would repeal the legislation if it passed. He said the opposition would decide its position on the tax cuts already passed for businesses with annual turnovers up to $50 million “in the context of the information we receive in the budget”.

The case for the tax cuts received a setback on Tuesday with the reporting of a secret BCA survey finding that fewer than one in five of leading chief executives had said they would use the proposed cut to directly increase wages or employ more staff. The Australian Financial Review reported that “more than 80% said they would either use the proceeds to boost returns to shareholders or invest in the company”.

The BCA played down the survey, saying it had never been finished.

Last week, the BCA released a letter signed by ten business leaders, saying: “If the Senate passes this important legislation we, as some of the nation’s largest employers, commit to invest more in Australia which will lead to employing more Australians and therefore stronger wage growth as the tax cut takes effect”.

The Australia Institute, lobbying against the legislation, wrote to senators with a brief about reaction to the Trump cuts.

The Conversation“Critically, the evidence shows it is not workers and employees who are benefiting most from the tax cuts. In fact, the tax cuts will exacerbate inequality with benefits flowing overwhelmingly to wealthier Americans via, for example, share buy-backs,” the institute’s executive director, Ben Oquist, wrote.

Michelle Grattan, Professorial Fellow, University of Canberra

This article was originally published on The Conversation. Read the original article.

How the government can pay for its proposed company tax cuts



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The government is still attempting to lower the corporate tax rate to compete globally.
Ben Rushton/AAP

David Ingles, Crawford School of Public Policy, Australian National University and Miranda Stewart, Crawford School of Public Policy, Australian National University

There are ways the government can pay for a cut in the company tax rate. In a recent working paper, we worked with researcher Chris Murphy to model three different options: reforming Australia’s system of giving shareholders tax credits, allowing less tax deductions on interest for companies, and introducing a tax on the super-profits of banks and miners.

After taking economic growth into account, the budget cost of the tax cut could be net A$5 billion a year.




Read more:
Race to the bottom on company tax cuts won’t stop tax avoidance


In the US, a company tax cut to 21% continues an inexorable global trend of cutting rates, making international tax competition even more pressing. As our working paper noted, Australia’s rate is now higher than most other countries, making tax avoidance even more attractive and deterring inbound foreign investment.

A cut in the Australian company tax rate to 25 or even 20% is important because it will attract foreign investment, boosting wages and the economy in Australia.

Remove dividend imputation

Australia has an unusual system of integrated company and personal tax, called dividend imputation. It has been in place since the 1980s.

Australian shareholders receive franking (imputation) credits for company tax. If shareholders are on a personal tax rate less than 30%, they receive a refund.

The company tax cut could be financed by removing dividend imputation. Our modelling indicates a company tax rate of 20% would mean the government breaks even, while halving imputation could finance a 25% rate.

It would be simpler to abolish dividend imputation and replace it with a discount for dividend tax, at the personal level.




Read more:
Qantas and other big Australian businesses are investing regardless of tax cuts


Dividend imputation only makes sense if we assume Australia is a closed economy with no foreign investors. In reality, Australia depends on inflows of foreign investment. About one-third of the corporate sector is foreign owned.

The likely source of additional finance, especially for large Australian businesses, is a foreigner who does not benefit from dividend imputation. So the company tax pushes up the cost of capital and domestic investors benefit from franking credits for a tax they don’t actually bear.

But the politics of making a change to the system are difficult, because domestic investors, especially retirees on low incomes and superannuation funds would lose out. But this approach could benefit workers, jobs and Australian businesses.

Broaden company tax by removing interest deductibility for companies

Another approach is to remove or limit deductibility of interest for companies. This can raise the same revenue at a lower rate, by allowing less deductions. Excessive interest deductions are used by multinationals to reduce their Australian tax bill, as shown in the recent Chevron case.

This would be like imposing a withholding tax on interest paid offshore. We explore a comprehensive business income tax on all corporate income. Modelling shows that this tax would finance the rate cut to 25%.

The comprehensive business income tax raises some difficult issues for taxing banks. This is because their profit is interest income less interest expense.

But there are numerous policies to restrict interest deductions already in place, here and around the world. These restrictions could be expanded. For example the thin capitalisation rules limit of the amount of loans a business can have relative to equity.

We still need anti-abuse rules because businesses can use other methods to minimise tax, as canvassed by the OECD in its Base Erosion and Profit Shifting project, including transfer pricing, and deductible payments offshore for intellectual property fees.

A rent tax or allowance for equity

A third option for a company tax cut is to change to a tax with a lower effective marginal rate. This means that the return on a new investment is taxed less heavily than under a company income tax.

We could introduce an allowance for corporate equity, or corporate capital, which provides a deduction for the “normal” or risk-free return for capital investment. This is also called an economic rent tax because it only taxes the above-normal profit.

Modelling shows that the allowance for corporate capital encourages new investment, which helps economic growth, but there is a large budget cost. The extra deduction reduces the overall tax take and so a higher rate is needed for the same revenue.

It is unlikely Australia would want to maintain or increase our company tax rate, as this directly contrary to the global trend and can lead to even more tax planning by businesses.

For Australia, a supplementary rent tax aimed at the financial and mining sectors – where above-normal returns are known to occur – could be combined with a lower company income tax. Modelling this option for the finance sector shows a large welfare gain and sufficient revenue to fund the rate cut to 25%.

The government has a lot of choices

We show that the government has many options available to finance the needed corporate rate cut and improve efficiency of the company tax.

Policymakers could mix and match these options. Dividend imputation could be replaced with a discount and combined with a comprehensive business income tax. Limits on interest deductibility could be combined with a part allowance for corporate capital.

The ConversationReplacing dividend imputation with a dividend discount at the personal level could be the best initial step. Other options for major reform of Australia’s company tax need to remain on the table, as company taxes drop to a new low and systems are reformed around the world.

David Ingles, Senior Research Fellow, Tax and Transfer Policy Institute, Crawford School of Public Policy, Australian National University and Miranda Stewart, Professor and Director, Tax and Transfer Policy Institute, Crawford School of Public Policy, Australian National University

This article was originally published on The Conversation. Read the original article.

Recent Incidents of Persecution


Punjab, India, December 1 (CDN) — Hindu extremists on Nov. 14 beat a Christian in Moti Nagar, Ludhiana, threatening to harm him and his family if they attended Sunday worship. A source told Compass that a Hindu identified only as Munna had argued with a Christian identified only as Bindeshwar, insulting him for being a Christian, and beat him on Nov. 7. Munna then returned with a mob of about 50 Hindu extremists on Nov. 14. Armed with clubs and swords, they dragged Bindeshwar out of his house and severely beat him, claiming that Christians had offered money to Munna to convert. Local Christian leaders reported the matter to the police at Focal Point police station. Officers arrested three Hindu extremists, but under pressure from local Bharatiya Janata Party leaders released them without registering a First Information Report. Police brokered an agreement between the parties on Nov. 18 and vowed they would not allow further attacks on Christians.

Tripura – Hindu extremists attacked a prayer conference on Nov. 6 in Burburi, threatening Christians if they opened their mouths. A local evangelist known only as Hmunsiamliana told Compass that area Christian leaders organized a prayer conference on Nov. 5-7, but extremists ordered the participants not to open their mouth or make any sound. Christian leaders reported the threat to police, and the participants proceeded to pray aloud. On the nights of Nov. 6 and 7, a huge mob of Hindu extremists pelted the Christians with stones, but the participants continued praying. The meeting ended on the evening of Nov. 7 under police protection.

Chhattisgarh – Hindu extremists from the Vishwa Hindu Parishad (VHP or World Hindu Council) disrupted a Christian youth gathering in Raipur on Nov. 6 and accused organizers of forcible conversion. The Evangelical Fellowship of India reported that Vision India had organized the Central India Youth Festival with about 900 in attendance when the extremists stormed in at about 4:30 p.m. and began questioning leaders. The Christian and VHP leaders then held a meeting in the presence of police, with the Christian leaders explaining that it was a normal youth meeting with no forceful conversion taking place. Nevertheless, officers and VHP leaders proceeded to observe the gathering and proceedings, and the Christians were made to submit a list of participants. In this tense atmosphere, the meeting concluded at 10 p.m. under heavy police protection.

Madhya Pradesh – On Oct. 31 in Neemuch, Hindu extremists from the Bajrang Dal barged into a worship meeting shouting Hindu slogans and accused those present of forceful conversion. The Evangelical Fellowship of India (EFI) reported that about 40 extremists rushed into the church building at about 10 a.m. shouting “Jai Shri Ram [Hail Lord Ram].” The Rev. K. Abraham, who was leading the service, pleaded with them to come back later, but the invaders remained and continued shouting. After the service ended, the extremists rushed Abraham and accused the church of paying money to people to convert, as published in newspaper Pupils Samachar. The Christians said the newspaper published the false news because Abraham, principal of United Alpha English School, refused to advertise in it, according to EFI. The extremists grabbed a woman in the congregation who had a bindi (dot) on her forehead, claimed that she had been lured to Christianity and asked her why she was attending the service, according to EFI. “Where were you people when I was demon-possessed?” the woman replied, according to EFI. “You didn’t come to help me, but when I came to the church in God’s presence, these people prayed for me and helped me to get deliverance.”

Karnataka – Police on Oct. 29 detained Christians after Hindu extremists registered a false complaint of forced conversion in Kalammnagar village, Uttara Kannada. The Global Council of Indian Christians (GCIC) reported that at around 8:15 p.m. police accompanied extremists belonging to the Bajrang Dal, who along with members of the media stormed the Blessing Youth Mission Church during a worship service for senior citizens. They dragged out Ayesha Nareth, Hanumanta Unikal,Viru Basha Doddamani, Narayana Unikkal and Pastor Subash Deshrath Nalude, forced them into a police jeep and took them to the Yellapur police station. After interrogation for nearly six hours, the Christians were released without being charged.

Orissa – Hindu extremists refused to allow the burial of a 3-year-old Dalit Christian who died in Jinduguda, Malkangiri. The All India Christian Council (AICC) reported that the daughter of unidentified Christian tribal people fell ill and was taken to a nearby health center on Oct. 27. The doctor advised the parents to take the child to a nearby hospital, and the girl developed complications and died there. When the parents brought the body of the girl back to their village, according to AICC, Hindus refused to allow them to bury her with a Christian ritual. There are only 15 Christian families in the predominantly Hindu village. With the intervention of local Christian leaders, police allowed the burial of the body in a Christian cemetery.

Karnataka – On Oct. 6 in Beridigere, Davanagere, a Christian family that converted from Hinduism was assaulted because of their faith in Christ. The Global Council of Indian Christians (GCIC) reported that the attack appeared to have been orchestrated to appear as if the family provoked it. An elderly woman, Gauri Bai, went to the house of the Christian family and picked a quarrel with them. Bai started shouting and screaming for help, and suddenly about 20 Hindu extremists stormed in and began beating the Christians. They dragged Ramesh Naik out to the street, tied him to a pole, beat him and poured liquor into his mouth and onto his body. His sister, Laititha Naik, managed to escape and called her mother. Later that day, at about 8:30 p.m., the extremists pelted their house with stones, and then about 70 people broke in and began striking them with sickles, stones and clubs. Two brothers, Ramesh Naik and Santhosh Naik, managed to escape with their mother in the darkness, but the Hindu extremists took hold of their sister Lalitha and younger brother Suresh and beat them; they began bleeding and lost consciousness. The attackers continued to vandalize the house, damaging the roof and three doors with large boulders. The unconscious victims received treatment for head injuries and numerous cuts at a government hospital. Police from the Haluvagalu police station arrested 15 persons in connection with the assault.

Report from Compass Direct News

After Fatwa, Pastor in Pakistan Beaten with Bricks


Convert, a former fighter in Afghanistan, had protested Islamic attack.

SARGODHA, Pakistan, November 5 (CDN) — Muslim extremists in Islamabad on Monday (Nov. 1) beat with bricks and hockey sticks a Christian clergyman who is the subject of a fatwa demanding his death.  

The Rev. Dr. Suleman Nasri Khan, a former fighter in Afghanistan before his conversion to Christianity in 2000, suffered a serious head injury, a hairline fracture in his arm and a broken bone in his left ankle in the assault by 10 Muslim extremists; he was able to identify two of them as Allama Atta-Ullah Attari and Allama Masaud Hussain.

The attack in Chashma, near Iqbal Town in Islamabad, followed Islamic scholar Allama Nawazish Ali’s Oct. 25th fatwa (religious ruling) to kill Khan, pastor of Power of the Healing God’s Church in the Kalupura area of Gujrat city. A mufti (Islamic scholar) and member of Dawat-e-Islami, which organizes studies of the Quran and Sunnah (sayings and deeds of Muhammad), Ali is authorized to issue fatwas.

Khan, 34, had relocated to a rented apartment in Islamabad after fleeing his home in Gujrat because of death threats against him and his family, he said. The fatwa, a religious order to be obeyed by all Muslims, was issued after Khan protested anti-Christian violence in Kalupura last month.

Muslim extremists who learned of his conversion had first attacked Khan in 2008 – killing his first child, 3-month old Sana Nasri Khan. He and wife Aster Nasri Khan escaped.

“During the Kalupura Christian colony attacks, once again it came into the attention of Muslim men that I was a converted Christian who had recanted Islam, deemed as humiliation of Islam by them,” Khan said.  

In this week’s attack, Khan also sustained minor rib injuries and several minor cuts and bruises. He said the Muslim radicals pelted him with stones and bricks while others kicked him in the chest and stomach. They also tried to force him to recite Islam’s creed for conversion; he refused.

On Monday night (Nov. 1) Khan had gone out to buy milk for a daughter born on July 19 – named after the daughter who was killed in 2008, Sana Nasri Khan – when during the wee hours of the night five unidentified Muslim extremists began kicking and pounding on the door.

“When my wife asked who they were, they replied, ‘We have learned that you have disgraced Islam by recanting, therefore we will set your house on fire,” Khan told Compass. “When my wife told them that I was not at home, they left a letter threatening to torch the house and kill my whole family and ordered me to recant Christianity and embrace Islam.”

Khan had sold some of his clothes at a pawnshop in order to buy milk for the baby, as he has been financially supporting six Christian families from his congregation who are on a Muslim extremist hit list. Islamic militants have cordoned off parts of Kalupura, patrolling the area to find and kill the families of Allah Rakha Masih, Boota Masih, Khalid Rehmat, Murad Masih Gill, Tariq Murad Gill and Rashid Masih.

Often feeding her 5-month-old daughter water mixed with salt and sugar instead of milk or other supplements, Aster Nasri Khan said she was ready to die of starvation for the sake of Jesus and His church. Before her beaten husband was found, she said she had heard from neighbors that some Muslim men had left him unconscious on a roadside, thinking he was dead.

The Rev. Arif Masih of Power of the Healing God’s Church in Islamabad told Compass that he was stunned to find Khan unconscious in a pool of blood on the roadside. Saying he couldn’t go to police or a hospital out of fear that Muslims would level apostasy charges against Khan, Masih said he took him to the nearby private clinic of Dr. Naeem Iqbal Masih. Khan received medical treatment there while remaining unconscious for almost four hours, Masih said.  

Born into a Muslim family, Khan had joined the now-defunct Islamic militant group Harkat-ul-Mujahideen, which later emerged as Jaish-e-Muhammad, fighting with them for eight and half years in Kashmir and Afghanistan.

While fighting in Afghanistan’s civil war in 2000, he said, he found a New Testament lying on the battlefield. He immediately threw it away, but a divine voice seemed to be extending an invitation to him, he said. When he later embraced Christ, he began preaching and studying – ending up with a doctorate in biblical theology from Punjab Theological Seminary in Kasur in 2005.

Upon learning of the Oct. 25 fatwa against him, Khan immediately left Gujrat for Islamabad, he said. He was living in hiding in Chashma near Iqbal Town when Muslims paid his landlord, Munir Masih, to reveal to them that Khan was living at his house as a tenant, he said. A young Christian whose name is withheld for security reasons informed Khan of the danger on Oct. 29, he said.

The young Christian told him that Munir Masih revealed his whereabouts to Allama Atta-Ullah Attari, a member of Dawat-e-Islami.

Khan said he confided to Christian friends about the dangers before him, and they devised a plan to hide his family in Bara Koh, a small town near Islamabad.

“But as I had sold and spent everything to help out Kalupura Christians,” he said, “I was penniless and therefore failed to move on and rent a house there.”

Report from Compass Direct News

Christians Accused of ‘Blasphemy’ Slain in Pakistan


Two leaders shot outside courtroom after handwriting report threatened to exonerate them.

FAISALABAD, Pakistan, July 19 (CDN) — Today suspected Islamic extremists outside a courthouse here shot dead two Christians accused of “blaspheming” Muhammad, the prophet of Islam.

The gunmen shot the Rev. Rashid Emmanuel, 32, and his 30-year-old brother Sajid Emmanuel, days after handwriting experts on Wednesday (July 14) notified police that signatures on papers denigrating Muhammad did not match those of the accused. Expected to be exonerated soon, the two leaders of United Ministries Pakistan were being led in handcuffs back to jail under police custody when they were shot at 2:17 p.m., Christians present said.

Rizwan Paul, president of advocacy group Life for All, said five armed, masked men opened fire on the two Christians amid crowds outside Faisalabad District and Sessions Court.

“Five armed, masked men attacked and opened fire on the two accused,” Paul said. “Sajid died on the spot,” while Rashid Emmanuel died later.

Rai Naveed Zafar Bhatti of the Christian Lawyers’ Foundation (CLF) and Atif Jamil Pagaan, coordinator of Harmony Foundation, said an unknown assailant shot Sajid Emmanuel in the heart, killing him instantly, and also shot Rashid Emmanuel in the chest. Pagaan said Sub-Inspector Zafar Hussein was also shot trying to protect the suspects and was in critical condition at Allied Hospital in Faisalabad.   

CLF President Khalid Gill said the bodies of the two Christians bore cuts and other signs of having been tortured, including marks on their faces, while the brothers were in police custody.

As news of the murders reached the slain brothers’ neighborhood of Dawood Nagar, Waris Pura, Faisalabad, Christians came out of their homes to vent their anger, Pagaan said. Police fired teargas cannons at Christian protestors, who in turn threw stones.

“The situation is very tense,” Gill said. “Police have arrested eight people for damaging property and burning tires.”

Paul of Life for All said tensions remained high.

“The situation in Faisalabad has deteriorated,” Paul said. “Indiscriminate shootings between Christians and Muslims have ensued. The situation has become very volatile, and local police have initiated a curfew.”

The courthouse shooters escaped, and Punjab’s inspector general has reportedly suspended the superintendent of police and his deputy superintendent for their failure to provide security to the slain brothers.

 

Lynch Mob Mentality

The report by handwriting experts to Civil Lines police station in Faisalabad presented a major setback to the case filed against Emmanuel and his younger brother under Section 295-C of Pakistan’s widely condemned blasphemy laws.

Muslims staged large demonstrations in the past week calling for the death penalty for the brothers, who were arrested when Rashid Emmanuel agreed to meet a mysterious caller at a train station but was instead surrounded by police carrying photocopied papers that denigrated Muhammad – supposedly signed by the pastor and his brother and bearing their telephone numbers.

The Muslim who allegedly placed the anonymous call to the pastor, Muhammad Khurram Shehzad, was the same man who filed blasphemy charges against Emmanuel and his brother and was already present at the Civil Lines police station when the pastor and an unnamed Christian arrived in handcuffs, said Pagaan of Harmony Foundation. Civil Lines police station is located in Dawood Nagar, Waris Pura, in Faisalabad.

Pagaan said that on July 1 Rashid Emmanuel received an anonymous phone call from a man requesting to see him, but the pastor declined as he was due to lead a prayer service in Railways Colony, Faisalabad. After the service, Emmanuel received a call at about 8 p.m. from the same man, who this time described himself as a respectable school teacher.

Pagaan said that Emmanuel agreed to meet him at the train station, accompanied by the unnamed Christian. As they reached the station, Civil Lines police surrounded them, showed them photocopies of a three-page document and arrested them for blaspheming Muhammad.

Sources told Compass that police released the young, unnamed Christian after a couple hours, and on July 4 officers arrested Emmanuel’s younger brother, a graduate student of business.

On July 10 and 11 hundreds of enraged Muslims paraded to the predominantly Christian colony of Dawood Nagar calling for the immediate death of the two Christian brothers. Some chanted, “Hang the blasphemers to death immediately,” sources said, adding that the mob hurled obscenities at Christ, Christians and Christianity.

Islamic extremists led the protests, and most participants were teenagers who pelted the main gate of the Waris Pura Catholic Church with stones, bricks and shards of glass and pounded the gate with bamboo clubs.

Some 500 protestors gathered on July 10, while on July 11 more than 1,600 demonstrated, according to Joseph Francis, head of Centre for Legal Aid Assistance and Settlement. Fearful Christians locked their homes, while others fled the area, as the demonstrators had threatened a repeat of the violence wreaked on Korian and Gojra towns in July and August 2009.

Nazim Gill, a resident of Waris Pura, told Compass that Muslims burned tires and chanted slogans against Christians last week, and that on Friday (July 16) announcements blared from mosque loudspeakers calling on Muslims “burn the houses of Christians.”

Khalid Gill contacted authorities to request help, and police forbid anyone to do any damage.

Saying “continuous gunshots have been heard for the past five hours now,” Kashif Mazhar of Life for All today said that Punjab Chief Minister Mian Shahbaz Sharif had ordered the provincial inspector general to restore law and order and arrest the murderers of the Christian brothers.

 

Other Victims

Khurram Shehzad had filed the blasphemy case on July 1 under Section 295-C of Pakistan’s blasphemy laws, which are commonly abused to settle personal scores.

Section 295-C states that “whoever by words, either spoken or written, or by visible representation, or by imputation, innuendo, or insinuation, directly or indirectly, defiles the sacred name of the Holy Prophet Muhammad (PBUH) shall be punishable with death, or imprisonment for life, and shall be liable to fine.”

Section 295-A of the blasphemy laws prohibits injuring or defiling places of worship and “acts intended to outrage religious feelings of any class of citizens.” Section 295-B makes willful desecration of the Quran or a use of its extract in a derogatory manner punishable with life imprisonment.

Khalid Gill said Khurram Shehzad, a merchant of Rail Bazar, Faisalabad, filed the charge after his servant told him that the two Christians had put up blasphemous posters at a truck station.

The Emmanuel brothers had been running United Ministries Pakistan for the last two years in Dawood Nagar, area Christians said.

The last known Christian to die as a result of a false blasphemy charge was Robert Danish on Sept. 15, 2009. The 22-year-old Christian was allegedly tortured to death while in custody in Sialkot on a charge of blaspheming the Quran. Local authorities claimed he committed suicide.

Area Christians suspect police killed Danish, nicknamed “Fanish” or “Falish” by friends, by torturing him to death after the mother of his Muslim girlfriend contrived a charge against him of desecrating Islam’s scripture. The allegation led to calls from mosque loudspeakers to punish Christians, prompting an Islamic mob to attack a church building in Jathikai village on Sept. 11 and the beating of several of the 30 families forced to flee their homes. Jathikai was Danish’s native village.

Three prison officials were reportedly suspended after Danish died in custody.

In other recent blasphemy cases, on July 5 a Christian family from Model Town, Lahore, fled their home after Yousaf Masih, his wife Bashrian Bibi and their son-in-law Zahid Masih were accused of blaspheming the Quran. Some 2,000 Muslims protested and tried to burn their house, Christian sources aid.

Police have filed a case against them due to pressure from Muslim mobs, but local sources say the allegations grew out of personal enmity.

Faisalabad was the site of the suicidal protest of Bishop John Joseph. The late Roman Catholic bishop of Faisalabad took his own life in May 6, 1998 to protest the injustice of Pakistan’s blasphemy laws.

Report from Compass Direct News

Recent Incidents of Persecution


Uttarakhand, India, April 30 (CDN) — Police arrested Pastor Jaswant Singh after extremists from the Hindu Jagrang Manch (Hindu Awareness Platform) filed a complaint against him of forceful conversion on April 25 in Rooria, Haridwar. A source told Compass that the extremists disrupted the prayer meeting of a house church service the pastor was leading, insulted the Christians’ faith and accused Pastor Singh of forcibly converting people. Police arrived and arrested Pastor Singh under Sections 107 and 10 of the Criminal Procedure Code for security and “keeping the peace,” and he was sent to Roorkie district jail. The pastor was released on bail the next day.

Karnataka – Police on April 19 detained Christians after local extremists filed a false complaint of forcible conversion against them in Hagare village in Hassan district. The Global Council of Indian Christians reported that a Christian identified only as Venkatesh invited two Christians, Guru Gowraiah and Puttuswamy Bhadraiah, to a prayer meeting at Basavaraj Pura. At about 7 p.m. a group of local extremists led by Hindu nationalists identified only as Mohan and Thammaiah disrupted the meeting, verbally abused the 20 people present and falsely accused Gowraiah and Bhadraiah of forcible conversion. Halebeedu police arrived and arrested Gowraiah and Bhadraiah. A police inspector identified only as Ramachandran M. told Compass that they were questioned and released after the complaint against them proved false.

Uttar Pradesh – Police arrested two Christians after Hindu extremists filed a complaint against them of making derogatory remarks against Hindu gods on April 15 in the Mohan area of Unnao. The Evangelical Fellowship of India reported that police arrested Budhi Ram and Vijay Phule of the Church of God as they were leading a prayer meeting. The two Christians were taken to Hassan Ganch police station and released on bail the next day. The Christians denied making any derogatory remarks against Hindu gods.

Chhattisgarh – Police on April 15 arrested four Christians in Bhilai after Hindu nationalists filed a complaint against them of forcible conversion in Bhilai. The Global Council of Indian Christians reported that a group of young members of the Brethren Assembly were distributing Christian literature when a mob of nearly 40 Hindu nationalists from the extremist Bajrang Dal and Dharam Sena attacked them. The Christians suffered cuts and bruises. Police arrived and took both parties to the police station. The All India Christian Council reported that on hearing the news of the attack, local Christian policeman G. Samuel went to help and was also hit with a false allegation of forceful conversion under Chhattisgarh’s “anti-conversion” law. The Christians were released on bail on April 22.

Karnataka – Hindu extremists on April 12 stopped a prayer meeting and accused Christians of forceful conversion in Chandapur, near Bangalore. The All India Christian Council reported that the intolerant Hindus beat the Christians, who sustained minor injuries. Police refused to file a complaint by the Christians.

Kerala – Hindu extremists from the Bajrang Dal accused a Christian media team of forceful conversion and beat them on April 12 in Perambra, Calicut. The All India Christian Council reported that the extremists attacked the media team of the Assemblies of God church while they were screening films on Jesus and a documentary on cancer. After the film ended, the enraged extremists stoned the house of a pastor identified only as Ponnachen and accused him of forceful conversion. They further threatened to set the pastor and his vehicle on fire if he screens Christian films again.

Karnataka – About 50 Hindu nationalists from the Rashtriya Swayamsevak Sangh attacked a house meeting of an Indian Pentecostal Church on April 11 in Horalhalli, Kanakapur, on the outskirts of Bangalore. The All India Christian Council reported that the Hindu extremists barged into the church’s worship service and accused Pastor K. Subhash of forceful conversion, threatened to beat him and warned him against leading any future house meeting services. Officers arrested Pastor Subhash, and he was released only after the station police inspector warned him not to conduct any future house church meetings while telling the extremists not to disturb the Christians.

Karnataka – Hindu extremists accompanied by police roughed up 12 pastors and accused them of forceful conversion on April 5 in Karmoda, Kodagu. The Global Council of Indian Christians reported that the mob stormed into the Christians’ meeting in the home of a Christian identified only as Vijay and took them to Ponnampet police station. After questioning, the Christians were charged with uttering words intending to hurt the religious feelings of others, defiling a place of worship, intent to insult the beliefs of others, intention to provoke a breach of peace and criminal intimidation and sent them to Virajpet jail.

Chhattisgarh – Police arrested three Christians based on a complaint of forceful conversion by Hindu nationalists on April 4 in Durg. The Evangelical Fellowship of India (EFI) reported that police arrested Pastor Premlal Chhatriys and two Christians identified only as Umabai and Sulanbai of the Evangelical Christian Church of India. The Hindu extremists had encouraged a Hindu woman, Agasia Bai, to file the complaint as she had attended the church twice last year seeking healing for her sick daughter. In February her daughter died, and the Hindu nationalists massed at Bai’s house and forced her to write a police complaint against the Christians of forceful conversion, according to EFI. She submitted a complaint claiming that the Christians had offered her 5,000 rupees (US$112)to convert and another 5,000 rupees after conversion, and that a pastor identified only as Chhatriys had forced her to eat beef on her two visits to the church in July of last year. With area leaders’ intervention, the Christians were released on bail on April 6.

Chhattisgarh – Hindu nationalists from the Bajrang Dal and Vishwa Hindu Parishad (World Hindu Council) disrupted Easter Sunday worship (April 4) of a Church of North India in Parsapani, Bilaspur, and accused pastor Bhaktu Lakda and others of forceful conversion. The Evangelical Fellowship of India reported that the extremists tore Christian pictures, seized Bibles and other gospel literature and beat the Christians. The Hindu extremists were accompanied by some local residents. Police arrived and made an inquiry. 

Uttarakhand – A mob of Hindu extremists accused Pastor Vinay Tanganiya of forceful conversion and beat him on March 30 in Barkote. The general secretary of the Christian Legal Association, Tehmina Arora, told Compass that the pastor, who also runs a school, fled to Barkote police station after the Hindu extremist mob beat him, but police refused to take his complaint and threatened to beat him further. The pastor was badly bruised.

Kerala – Police on March 29 detained a pastor and an evangelist along with their family members, including a 4-month-old baby, on false charges of denigrating Hindu gods in Ambalavayal police station in Wayanand. The Global Council of Indian Christians reported that the Hindu extremists, accompanied by police officials, stopped the Christians on their way back home after the screening of a gospel film in the Madakara area and started beating them. Pastor Eassow Varghese and Baiju P. George had obtained permission from the villagers to screen the film. The villagers testified that the allegations of the Hindu extremists were baseless. Police also seized the Christians’ film projector and van. After four hours, the Christians and their family members were released without charges.

Andhra Pradesh – Hindu extremists on March 25 disrupted a prayer meeting and beat Christians for their faith in Kadim, Alidabad. The All India Christian Council reported that the extremists, led by Anjane Yulu, stormed into the prayer meeting as church members were singing. The extremists beat two pastors identified only as John and Prabudas of the Indian Evangelical Team, as well as other church members, and verbally abused them for their Christian activities. The Christians sought the help of the village head, but the intolerant Hindus continued to beat them even in his presence. Police refused to take the complaint of the Christians.

Report from Compass Direct News