The business community of Khyber Pakhtunkhwa (KP) has rejected the federal budget for FY 2019-20 and termed it as anti-masses which will bring a tsunami of inflation after imposition of huge burden of proposed taxes on them. Speaking at a news conference, the Sarhad Chamber of Commerce and Industry (SCCI) president Faiz Mohammad Faizi said it's apparently seen imposition of number of taxes in the budget that would further bring down foreign investment and hit badly deprived segment of the society.
Faizi said the proposed increase of tax on sugar from 6 to 17 percent; federal excise duty on oil/ghee, as well as 17 percent on bakeries/confectionery items would directly affect the unfortunate masses. He said no measures were suggested for development of Small and Medium Enterprises in the budget.
Similarly, he said no reduction was proposed in non-development budget and put burden of further taxes on poverty stricken masses. He said SCCI proposals were not incorporated in the federal budget, in which it had been suggested to extend tax-relief to people in settled parts of the Khyber Pakhtunkhwa like given tax-exemption to PATA and erstwhile Fata.
SCCI chief said the KP is completely ignored in the fiscal budget for financial year 2019-20. He said there is nothing good in the budget as unnecessary taxes were being proposed. Faizi said export volume had decreased, which would further fall with imposition of new taxes. He said government has proposed imposition of taxes on retail sector, which would be difficult to run smoothly, and will also affect the poverty stricken people.
The United Business Group leader and leading industrialist, Ilyas Ahmad Bilour appreciated the people of Khyber Pakhtunkhwa for giving votes to Pakistan Tehreek-e-Insaf to come into power, but in returned it gave nothing to them in the budget. He said the prices of sugar, cooking oil/ghee, flour and other essential commodities will be further escalated which would directly hit the poor masses.
Bilour alleged that the new taxes were being proposed on behest of IMF in the budget. He said PTI leader Imran Khan had asserted that he would prefer suicide to seeking financial assistance from the IMF, but now the government was jubilant over its agreement for loan with the money-lending institution. He called the budget for financial year 2019-20 is mere eyewash, which will bring a wave of inflation in the country.
Zahid Shinwari, the SCCI former president and leading industrialists said taxes worth of Rs 1400 have been proposed in the budget as per agreement with IMF. He criticized that the economic growth would be stagnant after imposition of new taxes. He added that funds of Rs925billion for Public Sector Development Projects (PSDP) has been proposed, which will halt the economic growth.
He furthermore maintained that the new taxes have been proposed to reduce to budget deficit. He said that the indirect taxation will bring a tsunami of price-hike in the country that would affect the common people. Riaz Arshad, another renowned businessman said economic prosperity and development was impossible until bringing stability in taxes and economy. He said the everyone want to pay tax but instead of decreasing government's expenditures, number of taxes were being proposed in the budget, which only aimed at to destroy the nation and stop the local and foreign investment in the country.
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