Mini-budget discouraging tax filing

Islamabad: Farhatullah Babar, General-Secretary PPP-P, has said that by allowing non-taxpayers and non-filers to purchase land and motor cars, the government has legitimised corruption, incentivised non-tax return filers and further burdened taxpayers.

Mr Babar was addressing a discussion on ‘Amendments in Finance Bill 2018-19’ organised here by Sustainable Development Policy Institute (SDPI).

The PPP former Senator said that the government failed to provide a comprehensive roadmap to revamp and streamline economy and regional trade. No economy of the world has sign of improvement without trade with its neighbours, he continued. He said that the mini-budget presented by the government was utter disappointment, as it supported the corrupt mafia of the country. He said that the biggest corruption is deeply rooted in sale and purchase of land and the budget rewards the corrupt land mafia.

PTI Senator Nouman Wazir Khattak said that when PTI came into power, the economy was in shambles. He claimed that his government raised the tax rates on imports of only luxury items to cut the import bill. He promised to take concrete measures with consultation of stakeholders to bring the non-taxpayers into tax net. He said that the government requires at least next 3 to 4 months analysing economic crisis and finding ways to come out of the crisis. He said that Pakistan required 10 percent growth rate and aligning foreign policy with economy and trade.

Dr Vaqar Ahmed, Joint Executive Director, SDPI, said that the government tried to keep the income tax structure progressive through maintaining the low rate of tax on lower income groups. The advanced tax on transaction through the banking system by non-filers was increased. He said that this measure should be accompanied by a reduction in time and cost of becoming a filer where all scheduled banks should be allowed the powers to facilitate a willing person to become a filer. He asked the government to review its decision to allow non-filers to purchase property and motor vehicles.