PEW terms Rs40bn mini-budget as unjustifiedDecember 2, 2015
ISLAMABAD: Pakistan Economy Watch (PEW) on Thursday said that Rs 40 billion mini-budget slapped by the government is unjustified as it will increase poverty, fan smuggling, and weaken economy.
“Adhoc measures to increase revenue will never prove fruitful in the current scenario unless tax administration is reformed. “Those, who have always claimed to abolish SRO culture, have introduced mini-budget through an SRO bypassing Parliament which is against their claims,” said Dr Murtaza Mughal, President PEW.
He said that the government continued to earn hefty amount by imposing record taxes on petroleum products denying common man on any relief and now new measures had been imposed. “In a bid to earn more, officials have also slapped additional taxes on mobile phones and inflant milk considering them luxury items.”
Dr Mughal said that a top government functionary cited annoyance of IMF over reduced tax collection as reason for mini-budget, but later he changed the statement and termed it a tool to check increasing imports and ‘now the budget has been linked to war against terror and rehabilitation of IDPs which is amazing’.
The government has claimed to stabilise economy, reduce inflation, increase forex reserves, and boost remittances, but it has not helped sentiments as exports and investment continue to fall while private sector is not getting any loans. The mini-budget is a blunder which will fail to get results pushing government to introduce more such budgets.