ISLAMABAD
Dr. Shahid Rasheed Butt, a prominent figure in the business world and a former President of the Islamabad Chamber of Commerce and Industry (ICCI), stated on Tuesday that the International Monetary Fund (IMF) might not be pleased with a significant income shortfall of Rs 190 billion in a quarter.
IMF is likely to disapprove of a major revenue gap, forcing Pakistan to apply new tax measures, he said.He added that these steps will have a devastating effect on the economy, which is already struggling with inflation, rising oil and gas costs, and unprecedented tax measures.
According to a statement that was released here today, Shahid Rasheed Butt stated that the current economic scenario calls for tax reduction rather than placing further burdens on the general public and enterprises.
He said that tax targets that are based on the expectations and wants of the International Monetary Fund rather than the realities of the ground can never be successful.
The business community leader observed that we should focus on increasing the size of the economy instead of restricting it through stringent measures. If we don’t address this issue, the revenue deficit will persist. According to Shahid Rasheed Butt, the existing tax rate, interest rates, and the prices of energy and gas have made it impossible for the masses and businesses to survive.
Therefore, we should target the sectors that are paying no or very little tax. He warned that Pakistan cannot afford to suspend the tranche, which will make it difficult to address IMF discontent.
