“Mini-budget” to bring more poverty to the economy: Mian Zahid – Pakistan

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KARACHI: Chairman of the National Business Group Pakistan and Chairman of the Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain, said the government had planned a mini-budget to increase incomes, which would result in sleepless nights for masses and the business community.

He said the new tax measures will increase incomes but damage the real estate market as foreign loans have failed to stem the decline of the rupee.

Mian Zahid Hussain said that a second mini-budget will be presented if the first does not achieve the expected results.

He said the government’s decision to present a Rs 600 billion mini-budget has terrified the masses who are already facing one of the highest inflation in the world.

He said the impending mini-budget is the result of an agreement with the IMF that prioritizes economic stability over economic growth, which will lead to an economic slowdown, increased inflation, poverty, unemployment and unrest, while many businesses go bankrupt.

He said that there would be a reduction of Rs 200 billion in the development budget which would affect the population and that the tax exemptions of Rs 350 billion would be removed which would further increase business costs and inflation, after which the IMF board would consider paying Pakistan $ 1 billion. in January.

The government has the option of increasing the tax rate on sales tax, wages and pensions, he said, adding that the government has increased the rate of property appraisals in 40 cities, this which will increase RBF revenue but damage the real estate market.

New taxes will also be imposed on the automotive sector, while regulatory duties will also be imposed on 525 non-essential items to discourage their imports.

Mian Zahid Hussain added that in November, the import of 30 items registered an increase of 142% compared to November of last year, in which energy, steel and raw materials are included .

Imports of 30 items amounted to 287 billion rupees in November last year, which rose to 696 billion rupees this year, while total imports in November reached 1.3 trillion rupees, or 686 billion rupees. billion rupees in the same month last year.

Despite repeated warnings from economists, the government has failed to take effective measures to control imports and stem the decline of the rupee and now borrowing from friendly countries is also failing to prevent the rupee. to depreciate.

Copyright Business Recorder, 2021


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