On 16th March, a mini budget was presented through presidential ordinance. Although it is the duty of parliament to present and approve a bill, but as the PPP government was sure that such a controversial measure would not be supported in the parliament, they bypassed the legal route. Analysing the underlying reason for this mini budget, we can see that it was passed due to pressure by IMF. As our government is not strong enough to handle this pressure, it surrendered.
Through this budget, a number of taxes have been imposed. First, 15% surcharge has been imposed on income tax. By this, more burden is being put on those who are already paying taxes. Second, special excise duty has been levied. Third, GST is being levied on those products which were previously exempted such as leather, sports, fertilisers, pesticide and most notably textiles. All these lead to a build-up of inflationary pressure. Indirect taxation will, apart from inflation, lead to growing inequality in our society.
Tax on agricultural income was best alternative to all this. However, the government doesnt want to upset its own parliamentarians many of whom are landlords. Apart from this, tax on earnings made from real estate and stock exchange should be progressively levied. If the elite of this country is not ready to sacrifice part of their wealth in the form of taxes, then we would continually be engulfed in the shackles of IMF.
I have a simple question for our leaders: What benefit are we getting from the record amount of foreign loans? The only visible result is that common man is being presented with these kinds of unjust bills which are making his already miserable life even more unbearable.
OSAMA SAJID
Lahore