ISLAMABAD
\nDr. Muhammad Hanif Mughal, Chairman of Pakistan Tehreek-e-Shadbad, said on Friday that the Federal Budget combines assumptions, expectations, and contradictions.
\nHe said it would be impossible to achieve the goals set in the budget, and the budget would not lead to economic development, but the economy would shrink further. Dr. Hanif Mughal said that the rich class has been spared, while the poor and middle class have been targeted in the budget, which will further reduce their purchasing power and affect production.
\nHe added that the IMF always insists on taxation but does not call for reductions in government spending, which is reprehensible.
\nIn a statement issued here, Dr. Hanif Mughal said that the government wants to increase the growth rate to 3.6 percent, but with the steps being taken, it will be impossible to achieve a growth rate of 2 percent.
\nThe policymakers are repeating the mistake of considering enhanced taxation on the masses as the resolution of the problem. By increasing the salaried class tax, it is claimed that the government will receive 85 billion rupees more from them, but in reality, they will receive about 150 billion rupees more.
\nImposing sales tax on goods and medicines, etc., will further reduce the purchasing power of the people, which will result in reduced demand and production. Increasing the federal excise duty on cement will affect construction activities and reduce employment opportunities. He said five percent of federal excise duty has been levied on the sale of property, which is illegal, and the courts will overturn it.
\nDr. Hanif Mughal said that instead of this unconstitutional decision, it would have been better if the sale and purchase of files in the property sector had been brought under the tax as the imposition of capital gains tax on the non-filers working in the property sector would not help the government improve tax collection.
\nTax on inherited property has also been increased, which is regrettable. Making cars and stationery more expensive will also affect the middle class and the economy. Dr. Hanif Mughal said that pensions are being called a burden, but they have not been taxed because rulers need to save the influential pensioners who receive hefty pensions.
\nHe said that the budget has unrealistic targets that are impossible to achieve, which is why, after a few months, the IMF will issue an order to impose more taxes, but even this will not solve the problems.
\nFor the sake of sustainable development, the government ought to replace the continuous use of traditional budgeting hitting the poor and middle classes with a method that is both encouraging to businesses and encouraging to individuals, he demanded.
\nIn addition to putting an end to elitism which has brought the country to the brink of disaster, he urged that the overburdened budget be addressed as a major priority. There is a lot of anger among ordinary citizens at this budget which is justified, given that sky-high inflation, increased taxes, and low growth has significantly eroded the purchasing power of the masses.
\nSince January 2019, inflation has outstripped the region by over three times, crushing the aspirations and ambitions of every household. The primary reason for this pain is the government\u2019s poor financial management, which has led to high fiscal deficits through wasteful spending.
\nRather than solve the crisis at hand through the budget, the government has simply decided to impose more taxes on households and businesses that are already compliant, a policy which will not work.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Dr. Muhammad Hanif Mughal, Chairman of Pakistan Tehreek-e-Shadbad, said on Friday that the Federal Budget combines assumptions, expectations, and contradictions. He said it would be impossible to achieve the goals set in the budget, and the budget would not lead to economic development, but the economy would shrink further. Dr. Hanif Mughal said that […]<\/p>\n","protected":false},"author":2,"featured_media":414155,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-414147","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-national"},"yoast_head":"\n