- Anti-people budget will have devastating effects, trigger storm of inflation: PTI
- Traders say budget will increase inflation, create difficulties for economy and industry
ISLAMABAD/LAHORE/KARACHI: Reacting to the federal budget, main opposition parties, including Pakistan Tehreek-e-Insaf (PTI) and Jamaat-i-Islami, All-Pakistan Anjuman-e-Tajran, and chambers of commerce of different major cities including Karachi, Faisalabad, Sialkot and Rawalpindi rejected the budget.
They termed the IMF-dictated and tax-heavy Federal Budget 2024-25, as a lethal and poisonous for the inflation-stricken people, which would have devastating effects on the economy and the common man, triggering a storm of inflation.
‘Budget nothing but economic murder of people’
The PTI Spokesperson, in a statement, said that the anti-people budget of the federal government was nothing but an economic murder of the people as it would badly impact the routine life of ordinary people of the country because it would result in a sharp increase in prices, unemployment and poverty.
He said that the current budget was actually an IMF dictated budget and the government had no role in its preparation that was the reason there was no relief for the countrymen rather it would further exacerbate the public woes, adding that an ambitious target of GDP growth rate of 3.6% had been set for the next fiscal year, whereas the World Bank predicted the growth rate would not exceed 2.4 percent.
PTI spokesperson noted that the target of 12 percent inflation rate was completely unrealistic and unachievable. He stated that the budget would trigger a storm of inflation due to heavy taxes on the people, adding that on the dictations of the IMF, the tax target was increased by 48% to Rs. 12970 billion, which is a very cruel move of the government.
He pointed out that non-tax revenue, which was a major source of inflation, had been surged to Rs 3,587 billion, adding the budget deficit, which according to the Federal Finance Minister would be 6.9 percent of the GDP, would go to the highest level in history.
PTI Spokesperson feared that the abolishment of tax exemptions on exporters would adversely affect domestic exports, besides the increase in tax on real estate sector would not only cause panic in the market but also encourage transactions through cash.
He went on to say that after paying the money to the provinces, the income of the federal government will be Rs. 9119 billion, which is insufficient to pay only Rs. 9775 billion as interest.
PTI Spokesperson stated that for the first time, the pension bill has been increased of the civil government expenditure of Rs. 839 billion to 1014 billion, adding that the salaried class has been strangled by increasing the tax rate from 35 to 45 percent and changing the tax slabs.
PTI Spokesperson stated that for the first time, the tax on the real estate sector has been increased to 15% and for the poor section of non-filers to 45%, adding that inclusion of late filer category was another stupid move by the government.
He said that surprisingly Rs593 billion were allocated for the Benazir Income Support Program benefiting families only 9.3 to 10 million, adding that in contrast to Shahbaz Sharif’s claim of earmarking Rs1,800 billion for the agriculture package, allocating only Rs5 billion was mere a joke.
‘Anti-traders, business budget’
Meanwhile, describing the budget as anti-traders, All-Pakistan Anjuman-e-Tajran, and chambers of commerce of different major cities including Karachi, Faisalabad, Sialkot and Rawalpindi rejected the budget.
Ajmal Baloch, the President of All Pakistan Anjuman-e-Tajran, said that the government has increased taxes by 45 percent and imposed an 18 percent sales tax on mobile phones, which he said a draconian measure.
Ajmal Baloch said in the budget, the government has not announced any measures to reduce its ‘unnecessary’ expenditures. The All Pakistan Anjuman-e-Tajran president also criticised the imposition of an 18 percent sales tax on leather goods, saying it will lead to a significant increase in shoe prices.
LCCI President Kashif Anwar giving his opinion on the budget claimed that this budget will increase inflation and create difficulties for the economy and the industry as well. He said that the government cannot run the economy with this budget that was presented by Finance Minister Muhammad Aurangzeb.
LCCI chief said that the traders’ community will talk to the government regarding the budget proposals. He told the government that the construction industry has to be run otherwise the country’s economy will not run.
Meanwhile, FPCCI President Atif Akram Sheikh has also raised objections on the budget. FPCCI rejected the increase in levy on petroleum products. He said the construction sector has already suffered a lot and increasing the tax burden on the sector will further increase the difficulties. He demanded that relief should be given in power sector in the budget. He said the industry cannot run on 16 to 17 cents per unit.
Senior Vice President FPCCI Saqib Fayyaz said that the Finance Minister has earmarked a large amount for K4 project in Karachi which was a welcome step. Saqib Fayyaz said earlier the fixed tax on the exporter was one percent, now the exporter also has to pay 25 to 45 percent tax which was bad omen for the exporters.
KCCI president Zubir Motiwala while commenting the federal budget said that tax on real estate was a wrong step. He said there was talk of new taxes worth three and a half thousand billion rupees which will increase inflation and further weaken the industry. He said the government has allocated less amount for IT sector. He rejected three slab on income tax system. He said KCCI will submit proposals after finance bill. He urged the government to rationalize the power prices. He lauded tax on mobile set and other luxury items.
JI terms budget as ‘IMF’s Slavery Document’
Reacting to the federal budget, Jamaat-e-Islami (JI) chief Hafiz Naeemur Rahman has strongly criticized the newly presented federal budget, calling it an “IMF’s slavery document.”
In a scathing response, Hafiz Naeemur Rahman lambasted the Finance Minister’s press conference, describing it as a narrative of failures.
“The government has allowed the IMF to intervene in our institutions,” said Hafiz Naeemur Rahman, accusing the rulers of lacking the courage to negotiate with the IMF in the nation’s best interests.
He also criticized the practice of importing finance ministers into the country, questioning their commitment to Pakistan’s economic well-being.
Hafiz Naeemur Rahman highlighted that despite 23 programs from the IMF, there has been no significant improvement in the economy. He dismissed the Federal Board of Revenue’s (FBR) credit in the increase in tax revenue, pointing out that 326 billion rupees were collected from the salaried class.
“The poor have been squeezed by petroleum levies, expensive gas, and electricity bills,” he said. Hafiz Naeemur Rahman emphasized that 87% of the tax revenue is allocated to pay off loans and interest, arguing that the economy will not improve as long as there is interest.
