KARACHI: The federal budget 2024-25 came under heavy criticism at a seminar hosted by the Karachi Tax Bar Association (KTBA) on Saturday, with tax experts slamming it as excessively harsh and revenue-focused at the expense of economic growth.
Leading the charge was Abdul Qadir Memon, Chairman of the PTBA Academy of Taxation, who termed the budget measures “very harsh” and likely to create negative sentiment among taxpayers.
He predicted the Federal Board of Revenue’s (FBR) ambitious revenue target would prove unattainable, necessitating a mini-budget down the line. “The budget takes a revenue-centric approach rather than a growth-oriented one,” Memon said. High tax rates have historically failed to foster economic development in Pakistan, he said.
Anwar Kashif Mumtaz, President PTBA, criticised the introduction of a new “late filer” category in addition to filers and non-filers. He lamented stagnation in Pakistan’s tax policy over the past two decades on issues like tax rates, broadening of the tax base, and the tax-to-GDP ratio.
Sajidullah Siddiqui, Chief Commissioner Large Taxpayers Office, Karachi defended the budget measures while acknowledging issues with the tax culture. He said 80% of the supply chain remains outside the tax net, unfairly shifting burden to complaint taxpayers.
But the drumbeat of criticism highlighted scepticism that the budget’s harsh revenue focus can truly catalyze economic documentation and growth. Speakers urged a more balanced approach promoting investment and development alongside tax collection.
Copyright Business Recorder, 2024
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