Finding faults: Traders bemoan federal budget
Claim it will pose additional burden on the poor.
Traders argued with no reduction in taxes, a corresponding increase in sales taxes would be a burden for the poor.
PESHAWAR:
Traders and industrialists on Thursday criticised the government for imposing new taxes and providing no relief to the war-affected province in the federal budget.
Traders argued with no reduction in taxes, a corresponding increase in sales taxes would be a burden for the poor. They also asserted landlords and industrialists around the country should be brought under the tax net.
“The budget has not been prepared by the government. Rather, it has been handed over to them,” alleged Khyber-Pakhtunkhwa (K-P) Traders Association Vice President Shaukat Ali. “We cannot accept a budget in which the poor are forced to bear such a heavy burden.”
Ali added traders were expecting the new government would reduce sales tax from 16% to 15%, but were surprised when there was an increase to 17% instead. In addition, the one percent increase in retail tax for sales worth Rs5 million a year was also criticised. “It (the retail tax) is another levy that will only increase the burden on consumers.”
Ali went on to argue withholding subsidies on daily use items such as sugar, vegetable oil, and tea would provide no relief with higher taxes. He also pointed out the budget said nothing about taxing the rich.
Traders and general consumers asked for special relief for the province in light of the war on terrorism. “The previous government gave the province relief for three years, but the war has still not come to an end,” said K-P Chamber of Commerce and Industries former president Javed Khan.
He added the province had been ignored in the budget, and lashed out against the government for imposing taxes on people earning Rs500,000 per year. “We are looking forward to the provincial budget for now, once it is issued we will take further steps,” he warned.
Meanwhile, government servants expressed their anger over a lack of increase in salaries. Muhammad Husain, a government employee, claimed salaries were not increased even though there had been a substantial increase in inflation.
Published in The Express Tribune, June 14th, 2013.
Traders and industrialists on Thursday criticised the government for imposing new taxes and providing no relief to the war-affected province in the federal budget.
Traders argued with no reduction in taxes, a corresponding increase in sales taxes would be a burden for the poor. They also asserted landlords and industrialists around the country should be brought under the tax net.
“The budget has not been prepared by the government. Rather, it has been handed over to them,” alleged Khyber-Pakhtunkhwa (K-P) Traders Association Vice President Shaukat Ali. “We cannot accept a budget in which the poor are forced to bear such a heavy burden.”
Ali added traders were expecting the new government would reduce sales tax from 16% to 15%, but were surprised when there was an increase to 17% instead. In addition, the one percent increase in retail tax for sales worth Rs5 million a year was also criticised. “It (the retail tax) is another levy that will only increase the burden on consumers.”
Ali went on to argue withholding subsidies on daily use items such as sugar, vegetable oil, and tea would provide no relief with higher taxes. He also pointed out the budget said nothing about taxing the rich.
Traders and general consumers asked for special relief for the province in light of the war on terrorism. “The previous government gave the province relief for three years, but the war has still not come to an end,” said K-P Chamber of Commerce and Industries former president Javed Khan.
He added the province had been ignored in the budget, and lashed out against the government for imposing taxes on people earning Rs500,000 per year. “We are looking forward to the provincial budget for now, once it is issued we will take further steps,” he warned.
Meanwhile, government servants expressed their anger over a lack of increase in salaries. Muhammad Husain, a government employee, claimed salaries were not increased even though there had been a substantial increase in inflation.
Published in The Express Tribune, June 14th, 2013.