Hidden taxes in the Budget 2006-07 would increase inflation and price-hike while doubling the tax on stock market has damaged the country's economy, said Jalil Ahmed Malik, president, Rawalpindi Chamber of Commerce and Industry (RCCI) here on Monday.
"In spite of attracting more foreign investments, the government has threatened the existing investors who are looking for taking their money away from Pakistan", he said while talking to Business Recorder.
The federal budget was full of contradictions and after receiving details of the budget it became clear that many taxes were levied while announcement was not made in the budget speech.
The RCCI chief said that 15 percent excise duty was imposed on different modes of communication and services sector and nothing was declared in speech in this regard. The PIA has started receiving the 15 percent excise duty besides, this duty would be imposed on mobile phone services, fixed lines, internet, SMS, telegram and fax, he added.
Expressing concern over doubling the tax on shares, Malik said that it had badly affected the stock exchange and it has dropped more than 750 points. Last year, the tax target from stock exchange was Rs 2 billion, while collection was more than Rs 4 billion, so in these circumstances there was no need to increase the tax, he added.
The RCCI chief said the government had not paid any attention to the pressing demand of business community regarding decrease in the general sales tax (GST).