Those who thought the prime minister had learned from his past mistakes have been disillusioned.
KARACHI: This is with reference to your editorial of June 13 titled “Budgeting for 2013-14: a magic wand perhaps?”.
The first budget of the new government has come as a big shock. Those who thought the prime minister had learned from his past mistakes have been disillusioned. It is an inflationary budget and has targeted only those who are in the tax net. The salaried class has been particularly affected, while agriculturists have been left untouched since income from agriculture remains untaxed. The finance minister said nothing about curbing or eliminating electricity and gas theft, or about rampant smuggling, under-invoicing and misdeclaration of imported goods by companies and businesses to avoid higher rates of duty.
In fact, seventy-five per cent of the collected sales tax is to be used to pay for refunds (most of which are a result of fraudulent claims). A study recently concluded that the government can earn more by cancelling refunds and abolishing the sales tax department. Instead of cosmetic measures like curbing expenditures on the presidency and the prime minister’s house, the finance minister should concentrate on effective steps like catching those who indulge in smuggling, tax evasion, electricity/gas thefts and other such evil practices. Leaving them alone will prove that this government is no better than the one that preceded it.
Shakir Lakhani
Published in The Express Tribune, June 15th, 2013.
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