President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said no measure has taken to increase tax base in the supplementary federal budget which left the tax payers in doubts and non filers have encouraged which is contrary to the Prime Minister's vision. Commenting on the supplementary budget, he said that the problems of increased trade deficit and decreased foreign reserves will not get resolved through the measures announced in supplementary budget.
It is required to reform the public sector organizations causing annual loss of Rs 600 billion; in addition to incentives for the export industry, sector specific companies should be formed and measures to overcome the Rs 700 billion losses caused by gas and electricity theft and other line losses should be taken.
He said supplementary budget has disappointed investors, industrialists and traders. Increase in gas tariff for industrial sector will increase the cost of doing business and will cause increase in smuggling. He said that Karachi Infrastructure Development Company will earn Rs 50 billion through private public partnership to be spent on Karachi and National Highway Authority will spend Rs 100 billion on infrastructure. Tax rate is increased to 25 percent on 70,000 highly paid salaried persons while the rest high earning people will pay tax at the rate of 29 percent. Tax exemption on perks of provincial governors and federal ministers has been withdrawn.
Mian Zahid Hussain said that tax on banking transactions other than cash for non filer has increased to 0.6 percent from 0.4 percent which will discourage the use of banking channels and cash transactions will be promoted. Non filers have been allowed to purchase vehicles and property which has vanished the possibilities of tax net; investment property sector will be increased instead of industrial sector.
Mian Zahid Hussain said that Public Sector Development Programme fund has decreased by Rs 160 billion. Reduction in development budget will freeze the economic and financial growth and country's development will be affected. For the growth of the country, all stakeholders should be taken into confidence before taking any measures.
Increased tax on expensive mobile phones, luxury cars and imported cigarettes will leave no impact on common man but smuggling of these products may rise, which needs to be curbed.