Lahore Tax Bar Association (LTBA) President, Muhammad Sadiq Chaudhry and Secretary General Muhammad Ajmal Khan have declared the budget 2006-07 a "balanced one" wherein effort has been made to improve the conditions of government servants by increasing their salaries and by reducing the Income Tax rates.
They appreciated the withdrawal of Sales Tax and custom duty on import of agricultural and medical equipment.
They said that budget will help improve the economy, create employment opportunities apart from eradicating poverty.
They said that imposition of CVT on real estate and increase in tax ratio on shares business will help broaden the tax base.
Criticising the budget they were of the opinion that any details of sources of revenue has not been provided.
They however, expressed that prevailing situation of tax system was not satisfactory and proper steps have not been taken; and various irritants and provisions of taxes have not been withdrawn.
APTBA REACTION: Muhammad Naeem Shah former President of All Pakistan Tax Bar Association (APTBA) has termed the budget as "relief giving and growth oriented."
Shah said, all out efforts have been made to activate the economy and to promote each and every sector of the economy, besides creating job opportunities and alleviating poverty. 'Overall it is a relief giving budget.'
He said that the government has tried its best to set the things straight in the prevalent situation.
He appreciated the relief measures under the Sales Tax Act especially relating to exemption of imports of tractors and other machinery used for agriculture and medical equipment.
Naeem Shah praised the allocation of Rs 435 billion towards PSDP and increase in budgetary allocations for education and health sectors.