- PTI’s Rs 3.8 trillion shadow budget shows high development despite low taxes
Pakistan Tehreek-e-Insaf (PTI) on Thursday unveiled Rs 3.8 trillion shadow budget, proposing a six percent slash in the sales tax, bringing it down from 17 percent to 12.5 percent.
Addressing an urgently convened press conference, former PTI secretary general Jahangir Khan Tareen presented the budget, allocating Rs 750 billion for Public Sector Development Projects (PSDP). PTI senior leaders Shah Mahmood Qureshi, Shafqat Mahmood and Naeemul Haq were also present on the occasion.
Tareen claimed that PTI had presented a balanced budget which could help develop the country according to the requirements of the 21st century. The PTI has focused on improved allocations in the education, health, industry, agriculture, energy, defence and investment in the shadow budget.
He said that PTI had worked hard to present a revolutionary budget and it had been finalised after a hard work of two months.
“We have worked out this shadow budget according to the allocations made in the National Finance Commission award. The PTI strategists have shaped up a public-friendly and pro-poor budget and its implementation required political vision and commitment,” he added.
Tareen said that the PTI had proposed reforms in the Federal Bureau of Revenue (FBR) to ensure that it is freed from political influence. He said that the PTI aims at reducing the General Sales Tax from 17 percent to 12.5 percent which would help reform the petroleum sector and it would help reduce petroleum products prices.
“We have proposed to get rid of the Gas Infrastructure Cess while the corporate tax has been reduced from 34 percent to 20 percent. We have allocated Rs 820 billion for defence sector, raising it to 17 percent as compared to the last year’s allocation,” said the PTI leader.
Tareen said that the PTI had proposed 10 percent raise in the salaries of the civil servants while subsidy has been suggested for the agriculture sector. He said that the PTI budget had also promised to bring a cut in the running expenses of the government.
He said that PTI had also proposed formation of an impartial, autonomous but powerful Ehtasab Commisison (accountability commission) to purge the government institutions from corruption, nepotism and other malpractices.
“We have proposed measures to encourage private investment in the infrastructure which would result in creation of more jobs for the youth. We have proposed structural reforms in the tax sector. We will bring the 3,200,000 tax defaulters into the tax net who are not paying taxes due to their lack of confidence in the corrupt government system,” he said.
Tareen added that the PTI would focus on inviting Foreign Direct Investment (FDI) in the country which would help produce more jobs.
“We plan to develop the technology and research in the agriculture sector to boost our crops on the modern trends so as it could help per acre yield,” added the PTI leader.
Tareen regretted that during the past two years, the PML-N government had totally ignored the agriculture sector.
“We will also provide Urea and seeds to the farmers on subsidised rates. We want to focus wellbeing of the farmers and macro and micro-level steps would be taken to help improve the farming community,” added Tareen.
“Today, the government has imposed 34 percent tax on diesel products. We will introduce reforms in tax which would help bring cut of Rs 18 per litre in the diesel prices as higher prices of diesel are badly affecting the farming community,” he added.
“We will impose taxes on property business rather than taxing the poor. We will give poor relief while brining the rich into tax net,” he added.
Tareen said that the PTI would also introduce cut in tax on the public sector development projects (PSDP) so as it could not be a Raiwind Package.
About energy sector, Tareen said, “Our priority would be fast-track hydel power generation projects. The PML-N government has shelved the Diamer-Bhasha Dam which would be a blow to the already struggling energy sector,” he added.
