Budget again fails to meet masses' expectations: SCBAP
SCBAP President Mian Muhammad Rauf Atta in a statement on Thursday said that it appears that this budget relies heavily on cosmetic changes rather than structural reforms that could provide genuine relief to the public.
He said similar to the previous year, this budget is a deficit budget rather than a surplus budget, which places a burden on the middle and deprived classes. The government's lavish spending must be reviewed, as it will raise concerns and deepen the distress among the general public.
It said that given the current inflation and the rising prices of essential commodities, this budget will expose the general public to increased vulnerability. Not long ago, salaries for the higher judiciary saw an unprecedented increase, and now extraordinary increase in the salaries and privileges of the Speaker, Chairman, and Members of Parliament has been approved.
On the contrary, maintaining the minimum wage at Rs37,000 is extremely unjustified and a clear example of lavish spending and clear mismanagement of resources. Clearly, focus was on providing subsidies to privileged class instead of offering support to the poor who truly deserve it.
Furthermore, the allocation of huge funds for non-developmental schemes is very concerning. It is crucial to understand that simply abolishing or merging ministries will not alleviate the suffering of the public; rather, the government needs to set an example by implementing austerity measures.
With the announcement of the 2025-2026 budget, it became clear that there is no relief for the general public from rising inflation. A series of heavy taxes have also been proposed on various essential items and businesses, which will not only further burden the public already grappling with inflation but will also discourage small-scale enterprises, IT/online-based businesses to operate in the best interest of economy.
'Despite the best efforts, we are unable to find any substantial allocation of funds for the education and health sectors. Additionally, structural changes within institutions like the Federal Board of Revenue (FBR) are urgently needed. Empowering FBR officers with more unchecked power, especially when they have a history of coercion general public, will hinder efforts to broaden the tax net.'
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 hours ago
- Business Recorder
Gold price per tola decreases Rs1,500 in Pakistan
Gold prices in Pakistan declined on Friday in line with their decrease in the international market. In the local market, gold price per tola reached Rs355,500 after a loss of Rs1,500 during the day. As per the rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), 10-gram gold was sold at Rs304,783 after it shed Rs1,286. On Tuesday, gold price per tola Rs357,000 after a gain of Rs800 during the day. The international rate of gold decreased on Friday. The rate was at $3,335 per ounce (with a premium of $20), a loss of $15, as per APGJSA. Meanwhile, silver price per tola remained unchanged at Rs3,871.
Express Tribune
18 hours ago
- Express Tribune
Punjab speaker moves to disqualify 26 MPAs
Listen to article The Punjab Assembly Speaker Malik Ahmed Khan on Thursday filed a disqualification reference with the Election Commission of Pakistan (ECP) against 26 opposition members of the provincial assembly (MPAs) for "disparaging the sanctity of the house". The MPAs against whom the reference was sent to the electoral supervisor belong to the Sunni Ittehad Council (SIC). Talking to media, the speaker confirmed the development, saying that those, who violated the sanctity of the house, would not be spared. "The matter is with the ECP, which may disqualify such members," he added. Malik Ahmed Khan said that it was not a democratic norm to resort to misconduct, use abusive language and resort to violence in parliament. "It is anti-democracy attitude". He said the Article 63 of the Constitution clearly defines the criteria for disqualification, and emphasised that every member of parliament takes oath to safeguard the Constitution. He vowed to fight the case for the protection of the Constitution. "It is my duty to maintain order in the house," said the Punjab Assembly speaker. "I am showing patience for more than one and a half years. I have to justify my role as the speaker," Malik Ahmed Khan stated. Earlier, the speaker directed a legal team to prepare a draft reference for consultation, before potentially submitting it to the ECP for the de-seating of 26 suspended SIC MPAs over their alleged disruptive, abusive and disorderly conduct in the house. The directive came during a meeting between the speaker and the legal experts after an initial determination that a reference could be filed based on the applications submitted by PML-N lawmakers, who urged the Speaker's Office to take action against the suspended members. On June 27, the situation in the Punjab Assembly aggravated as the opposition's noisy protest disrupted proceedings during Chief Minister Maryam Nawaz's addresses. Their conduct appeared even more aggressive, reportedly in response to the Supreme Court's ruling on reserved seats. The protest quickly escalated into scuffles between treasury and opposition lawmakers. Despite Speaker Khan's repeated efforts to control the situation, order could not be restored. Consequently, on the same day, the speaker suspended 26 opposition lawmakers, invoking Rule 210(3) of the Rules of Procedure of the Provincial Assembly of Punjab (1997). On June 28, the speaker, directed that Rs2,035,000 in damages be recovered from 10 PTI MPAs – approximately Rs203,550 each – for climbing onto desks and breaking eight microphones during their protest on June 16, when the provincial budget was being presented. It is worth noting that protest has historically been a recognised feature of parliamentary proceedings. Opposition lawmakers are often seen engaging in fiery exchanges, desk-thumping, slogan-chanting, tearing up agenda papers or budget documents and holding placards aloft.
Express Tribune
19 hours ago
- Express Tribune
Salaried class paid Rs555b in FY24
Listen to article Salaried individuals have paid a staggering Rs555 billion in income tax in the last fiscal year, which were Rs188 billion more than the preceding year and also 100% more than the combined taxes paid by retailers and real estate sector. The record-high contributions by people, who pay income tax on the gross salaries without having the luxury to adjust their expenses, substantially reduced the home-take salaries of a larger segment of society. According to provisional figures compiled by the Federal Board of Revenue, the salaried persons paid Rs555 billion in income tax during the fiscal year 2024-25. The unwilling contributions were 51% or Rs188 billion more than the taxes collected from the salaried persons in the preceding fiscal year. In the fiscal year 2023-24, the government had collected Rs367 billion from the salaried persons. The government of Prime Minister Shehbaz Sharif had phenomenally increased the tax burden of the salaried class and claimed it would generate only Rs75 billion in additional income taxes. The highest ever contributions by the salaried persons in a single year showed how the voiceless people have been discriminated against the powerful sectors of the country. Last month, the government marginally reduced the tax burden of the people earning up to Rs3.2 million annually, which it said would give them a benefit of Rs56 billion. This nominal benefit of Rs56 billion compared to the current contributions is like a drop in the bucket, which would not address the fiscal woes of the salaried individuals. Despite putting enormous burden on the salaried class, the FBR missed its annual collection target by a margin of around Rs1.2 trillion. The details showed that non-corporate sector employees paid Rs236.5 billion income tax in the last fiscal year, which is higher by Rs67 billion or 40%. Corporate sector employees paid Rs165 billion in income tax, also higher by Rs54.6 billion or 49%. Employees of the provincial governments paid Rs99.5 billion in taxes, which was up by Rs49 billion or 98%. The federal government employees paid Rs54.2 billion, higher by Rs17 billion or 45%. Total income tax payments during the last fiscal year were Rs5.8 trillion and the salaried class paid Rs1 out of every Rs10 collected from the entire country under the head of income tax. In contrast to Rs555 billion paid by the salaried persons, the retailers, mostly unregistered, have contributed only Rs38 billion on account of withholding income tax on their purchases. The amount of tax that traders paid under section 236-H was 1,360% less than taxes paid by salaried persons. Besides, wholesalers and distributors also paid Rs25 billion withholding tax in the last fiscal year and almost half of them were unregistered with the FBR, said the sources. PM Sharif could not live up to his promise of collecting due taxes from the retailers. The Tajir Dost scheme failed to yield desired results and the government has not announced any new measure in the budget to bring the retailers in the tax net. Its biggest enforcement measure to ban the economic transactions by ineligible persons has become effectively useless after the government exempted more than 90% transactions from the purview of the new law. The government has allowed the ineligible persons, those having not enough declared resources, to buy up to Rs7 million worth of a car, Rs50 million worth plot and Rs100 million commercial property. In the budget, the government had imposed 2.5% withholding tax on traders, in the hope that this would force them to come into the tax system. Though the increase in the rate did help collect Rs21 billion more from the traders, the intended objective could not be achieved. The traders passed on the cost of the additional tax to the end consumers. In the last budget, the government had also substantially increased the tax burden of the real estate sector by increasing the rates for the non-filers and also introducing a new category of late filers in the budget. As a result, during the last fiscal year, the government collected Rs237 billion on sales and purchase of properties. This helped increase collection by 19% compared to the previous fiscal year but it was still below the mark. The combined taxes paid by both retailers and the real estate sector were 100% less than the total contributions by the salaried persons. On the sale of properties, the government collected Rs119 billion on account of withholding taxes, which were one-fourth more than the preceding fiscal year. On the purchases of the plots, the government collected another Rs118 billion, also higher by 14%. In the new budget, the government has abolished the federal excise duty on the real estate sector. The net taxes on the sales and purchases remained unchanged, although the government shifted higher burden towards the sellers by increasing their withholding tax rates.
