THERE can be no two opinions about the need to increase the tax collection as part of the strategy to lessen crippling dependence on foreign loans but details emerging of the tax measures introduced by the government for the next financial year are depressing as traditional approach of putting additional burden on the existing taxpayers and the common man has been repeated in the new budget leaving potential taxpayers untouched.
The lopsided nature of the Rs.670 billion worth of additional taxation is evident from the fact that retailers and professionals will continue to remain almost out of tax net despite minting money but fixed income groups will cough up more taxes directly or indirectly than the relief they will get due to reduction in income tax rate for different slabs.
Similarly, the common man will be hit hard by measures like imposition of carbon levy on petrol and diesel; proposed 10% surcharge on power bills; tax on online shopping, transactions and earnings; repressive tax on solar panels; and imposition/increase in tax on some household and food items.
The government leaders have been talking about stabilization of the economy and their plans to ensure trickledown effect of the improvement in economic indicators but the budgetary proposals have dampened hopes of the masses.
It is because of this that almost all segments of the society are expressing serious concern over various proposals as entire focus of the budget remains on taxation and relief measures are viewed as peanuts.
Government employees and pensioners are dismayed over meagre increase of 10% and 7% terming it as a cruel joke in the backdrop of phenomenal hike in salaries and allowances of parliamentarians and the common man is worried over prospects of a fresh wave of inflation due to various taxation measures.
The Government has once again demonstrated its callous attitude towards electricity consumers by denying them the opportunity to go for cheaper solar option as 18% GST has been imposed on their import.
Similarly, over and above a number of taxes on the power bills, there is also a plan to impose a ten per cent surcharge in the name of curbing the soaring circular debt but in fact feeding the corruption machine of the sector.
These measures, together with a possible increase in fuel adjustment charges after imposition of carbon levy and increase in PDL, will make the reduction in electricity tariff non-effective.
Industrialization and IT promotion were seen as sure shot options to help accelerate the economic growth and move towards the goal of self-reliance but the measures introduced in the budget will prove counterproductive to this cherished objective.
It is a matter of concern that the Government has started implementing tariff reforms that will effectively turn Pakistan into a dumping ground of foreign products, rendering a crippling blow to the strategy of ‘Make in Pakistan’ and accentuating the problem of unemployment which has already been compounded by a mad rush for privatization of almost all sectors including education, health and power.
The Government aims to boost IT exports to $25 billion in five years but the target seems unrealistic in view of the anti-digital approach adopted in the new budget that could discourage free-lancing and e-commerce.
Regrettably, no worthwhile relief has been announced for the IT and telecom sectors, which are facing a multitude of problems due to heavy taxation.
It is also unfortunate that not a single relief measure has been announced for the agriculture sector despite the fact that Pakistan is an agrarian country and a focus on agriculture could have not only meant food security but also a source of foreign exchange earnings.
We hope these and similar other aspects of the budget will be debated thoroughly by the members of the National Assembly and the Senate and based on their input, the authorities concerned will review the budgetary proposals, reflecting aspirations of the people.
