KARACHI: Small traders on Friday called the federal fiscal budget 2022-23 as “IMF’s financial plan”, saying that it offers “very little” to small businesses.

The coalition government’s fiscal budget 2022-23 with an outlay of Rs9.5 trillion has failed to attract the small businessmen, as it also ignores cottage industry, the traders said.

“This is not a pleasant budget,” President, All Pakistan Organization of Small Traders and Cottage Industry, Mehmood Hamid said, but appreciated a budgetary proposal for fixed tax on retailers.

This budget for fiscal year 2022-23 also ignored the development of cottage industry, which is one of the primary sources of employment in the country, he said, adding that “fixed tax is; however, a good step”.

He said that fixed tax mechanism will need a complete legal protection to help retailers guard against taxmen’s harassments.

“Electricity, fuel oil and gas prices are increasing and will further go up,” he feared, adding that such a galloping inflation will hit the poor and traders equally. “Economy will be out of control,” he said adding that “the IMF wants a flood of taxations and nothing else”. The Prime Minister’s previous announcement to ban import of luxury cars should have been protected in the budget, he said, proposing that “import of all kind of luxury cars should be banned so that foreign exchange could be saved”. Mehmood Hamid said that the budget is going to overburden public and traders with inflation, with business downsizing resultantly. The budget has raised questions for traders whether or not to plan future investment. “This is an IMF spelled budget and will have negative impacts on the economy,” he said adding that the fresh investment will be on hold, as traders are undecided for business expansions.

Chairman All Karachi Tajir Ittehad, Muhammad Atiq Mir also lauded the budgetary proposal for fixed tax on retailers. However, he said, “There is very little with the government to offer for small traders in the budget”.

Copyright Business Recorder, 2022