Karachi: Zubair Tufail, President of the United Business Group (UBG) and former president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has voiced strong concerns over the new federal budget for fiscal year 2024-2025, describing the accompanying wave of inflation as a harbinger of economic turmoil. Tufail's critique follows the recent implementation of new tax regulations, which he argues have placed an undue burden on various sectors of Pakistan's economy.

According to United Business Group, Tufail expressed dissatisfaction with the federal budget, indicating that no sector feels benefited by the new tax measures. He highlighted the particular plight of exporters, the construction sector, and petroleum dealers, noting that these key economic contributors are facing significant challenges due to the increased tax burden. The construction sector and petroleum dealers have even threatened strikes in response to the budget's provisions.

Tufail further criticized the increase in taxes on essential food items, which he said would lead to sharp price hikes for staples such as pulses, meat, flour, oil, and spices, bringing them to the highest levels in the nation's history. He warned that the public would suffer under the "inflation mill" created by these new fiscal policies, instituted under the guidance of the new federal finance minister.

Additionally, Tufail remarked on the detrimental impact of the budget on the Information Technology (IT) sector, which he referred to as a "bright chapter" in Pakistan's economy. He explained that the doubling of the withholding tax rate from 5 percent to 10 percent on IT services would significantly escalate operational costs, adversely affecting both startups and established IT firms.

Concluding his remarks, Tufail called for immediate action from the government to address these issues. He urged the finance minister to visit the FPCCI head office and engage directly with representatives from the affected sectors to discuss and resolve their grievances.