Islamabad, June 25, 2023 (PPI-OT): Dr. Hanif Mughal, Senior Vice President of Pakistan Economy Watch (PEW) said on Sunday that the recently announced tax measures will bring untold pressure on the poor masses facing unprecedented inflation and unemployment since last few years. The government has made several changes to next fiscal year’s budget, including fiscal tightening measures in a last-ditch effort to secure critical funding, but it will also hit the masses badly, he said.
The government now aims to generate another Rs215 billion in taxes and cut spending by Rs85 billion without reducing the federal development budget or the salaries and pensions of government employees, which will be difficult, he added.
In a statement issued here today, Dr. Hanif Mughal the IMF orders will revise the revenue collection target to Rs9.415 trillion; put total spending at Rs14.48 trillion and the share of provinces would be increased to Rs5.39 trillion from Rs5.28 trillion. The government will collect Rs70 billion from fertiliser duty, Rs45 billion from hike in tax on buying, selling property, and Rs30 billion from increased tax on people earning above Rs200,000 per month.
Govt has claimed to cut spending by Rs85 billion, raise Petroleum Development Levy from Rs50 to Rs60 per litre and introduce a scheme worth Rs80bn to boost remittances. The allocation for the Benazir Income Support Programme was also revised from Rs450 billion to Rs466 billion.
Hanif Mughal said that the government has claimed that these measures would not affect the poor, which is highly unlikely. It is expected that the government may announce further tax amendments in the finance bill any time soon, he said.
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