ISLAMABAD: Former prime minister Shahid Khaqan Abbasi on Monday criticised the tax exemptions given to civilian bureaucrats and military personnel in the worst-ever federal budget presented in Pakistan’s history.
Speaking at a news conference along with former finance minister Miftah Ismail, the former premier lambasted the federal budget, terming it as the worst budget ever presented by any government in Pakistan’s history.
Both Abbasi and Ismail have parted ways with Pakistan Muslim League-Nawaz (PML-N) after developing differences with the central leadership, as the latter also announced on Monday that they will launch a new party – Awaam Pakistan – on July 6.
Commenting on the federal budget, Abbasi further maintained that it is the third consecutive disappointing budget under the current government.
Referring to the 2.5 to 4.5 percent tax imposed on selling a land or house, he opposed the exemption given to civil bureaucrats and military personnel.
“Civil bureaucrats and military personnel whether serving or retired have been granted an exemption. I am absolutely in favour of giving [an] exemption to the family members of martyrs who have houses. But a path has been opened that will spoil the whole matter. Tomorrow the people will ask if they can get an exemption then why can’t I get it,” the former premier questioned.
According to him, no non-filer will pay 4.5 percent tax on property. “It will be your imagination; the finance minister should justify why he is putting more burden on the salaried class…What will you do in the next year’s budget, will you impose 60 percent tax on the salaried class”? he further asked.
He added that the government has put a further tax burden on the salaried class and lamented that even basic items like milk have been taxed.
He stated the government could have avoided all the additional taxes if it only curbed the smuggling of diesel and LPG.
Abbasi also expressed concern over the disproportionate taxation policies, adding that such measures often lead to significant reductions in disposable income for a common man.
He also raised questions on fiscal governance and also pointed out discrepancies in tax collections from sectors like tobacco manufacturing.
He also warned about the budget’s economic implications, adding that government expenditures now account for 25 percent of the GDP. He also asked the government to cut its expenditures.
Abbasi criticised the lack of measures to combat diesel and petrol smuggling from Iran as well as the absence of economic benefits reaching the people of the erstwhile FATA, despite their integral status within Pakistan.
He also opposed the extension of tax exemption given to the industries in ex-FATA.
Abbasi said the budget would prove disastrous for the country, economy, and the people, adding that either “this budget will survive or the country”.
He pointed out that Rs500 billion will be distributed among MNAs and MPAs for development projects. “Will you take loans for development projects?” he posed a question.
Speaking on the occasion, former finance minister Miftah Ismail also criticised the federal budget and blamed the government rather than the IMF for “backbreaking” taxation measures.
He added that instead of following the IMF’s recommendations of taxing untaxed sectors, the government has put more burden on the salaried class.
Copyright Business Recorder, 2024
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