Budget 2017-18: Opposition divided over new taxes for professionals

Members decry inclusion of loans, silent inclusion of CPEC projects

PESHAWAR: Members of the opposition benches in the Khyber-Pakhtunkhwa (KP) Assembly are split over imposing new taxes on professionals and government employees in the budget for the upcoming fiscal year 2017-18

During the debate on the budget in the K-P Assembly on Saturday, some of the opposition members criticised the Pakistan Tehreek-e-Insaf-led provincial government for imposing new taxes.

However, others supported the move, noting that taxes were required and are collected in every developed country of the world. The leader of the Opposition, Jamiat Ulema-e-Islam-Fazl’s (JUI-F) Maulana Lutfur Rehman, said that the government had presented a ‘deficit’ budget, but were projecting it as a balanced budget.



“The government balanced the budget by including loans to show to the public a positive side of it,” Luftullah said, adding that only colourful words have been added to the budget documents and nothing else. He criticised the imposition of taxes on various professionals and businesses as ‘shameful’.

Talking about the China-Pakistan Economic Corridor (CPEC), he recalled how the PTI-led government had first sought to make the CPEC controversial by politicking over the western route of the corridor, and now they had accepted the western route in the budget documents.

“We used to tell the government that no changes have been made in the western route of CPEC and it’s actually the original route but PTI had refused to accept it. But now, they [PTI] have accepted it,” the opposition leader said.

Another member from the opposition benches, PML-N Sardar Nalota said that it was strange that the government had imposed taxes on small tuck shops, tailors, fuel stations, and other professionals all the while the government insisted on calling the budget ‘tax-free’.  Moreover, he said that no favour had been extended to the poor in the province with few funds allocated in the Annual Development Programme (ADP).

“The ADP funds have been restricted only to five-six districts while the remaining districts have been deprived of developmental funds,” Nalota complained.



On the hand, Pakistan Peoples Party’s (PPP) Sardar Hussain backed the government on new taxes. He said a tailor who was charging Rs1,000 for a single suit should be bound to pay taxes to the government for the services they were using such as electricity.

“Taxes are paid by every individual across the world to run governments,” Hussain stated.

The finance bill, tabled in the Assembly by Finance Minister Muzafar Said on June 7 had proposed a tax of Rs2,000 on tailors who stitch shalwar kameez, while Rs5,000 have been imposed on those who also stitch waistcoats and Rs10,000 on those stitching pants and shirts as well.

Published in The Express Tribune, June 11^th, 2017.