Business community and government employees in Khyber Pakhtunkhwa have expressed disappointment over the federal budget for financial year 2013-14, adding it had overburdened the people and will increase corruption. Talking to Business Recorder, Zia-ul-Haq Sarhadi, Director, Pak-Afghan Joint Chamber of Commerce & Industry (PAJCCI) and chairman, SCCI Standing Committee on Railway and Dry Port was critical of both non-increase in the salaries of the government employees and increase in Withholding Tax (WHT) on cash withdrawal from commercial banks.
He said that though the prices of essential food items had registered an increase of 15 to 20 per cent, but first time in the budgetary history of the country, the present government had ignored government employees. He appreciated increase in the pension of the retired government employees, but added that increase in the salaries of the government employees was also necessary.
He expressed the fear that the decision of the government will increase corruption in government employees. Sarhadi said that the levy of 3 per cent WHT on the cash withdrawal from commercial was totally unjustified saying the business community, which are already burden, the tax will multiplied their grievances. He said the levy discourage the bank deposits.
He also expressed concern on increase in the ratio of customs duties and sales tax. He said that though the business community had proposed reduction in the ratio of taxes, but the government had increased it. He said the decision of the government will directly affect the general public and will cause price-hike. Furthermore, he said the federal government also failed in initiating any concrete measure for the resolution of the grave problem of energy crisis. He said the government had included no mega power projects in the budget.
Sarhadi was however appreciate the allocation of Rs 31 billion for the revival of Pakistan Railways and its operation through private sector. The step, he said, will help Pakistan Railways in arresting its deficit. Furthermore, he said that Afghan Transit Trade, which had shifted to Bandar Abbas of Iran, would also come back to Pakistan.
Similarly, he said that due to the lacking of modern dry port facility, location disadvantage and weak provincial economy, majority of the industrial units have been either close or operating under capacity. The rival of Pakistan Railways will usher better impact on the economy of the province and will generate employment opportunities. The government employees including clerks and teaching community have flayed the denial of the federal government to increase the salaries of the employees. They said that in the prevailing sky rocketing price hike, the government employees expecting relief, but the budget had disappointed them.