Karachi, June 13, 2024 – The Pakistan Tax Bar Association (PTBA) rebuked the newly announced 2024-25 budget, branding it as detrimental to the nation’s populace and economic growth.
The PTBA, in a resolute press conference held today, vehemently criticized the measures outlined in the budget, deeming them as profoundly anti-people and anti-business. Led by Anwar Kashif Mumtaz, President of the Pakistan Tax Bar, along with Senior Vice President Mohammad Zubair, General Secretary Rehan Siddiqui, and Secretary Finance Wasim Hashmi, the association highlighted several critical issues with the budget’s provisions.
Central to their condemnation was the accusation that the budget had been crafted under the influence of the International Monetary Fund (IMF), allegedly to meet stringent conditions imposed for future loans. The PTBA representatives expressed grave concerns that the IMF-backed budget would exacerbate inflation, primarily due to the withdrawal of sales tax exemptions and an escalated levy on petroleum products.
“The measures introduced in the budget will undeniably burden the already struggling salaried class, who face an additional 15 percent tax,” stated Anwar Kashif Mumtaz, emphasizing the disproportionate impact on vulnerable segments of society.
Moreover, the PTBA denounced the sharp rise in penalties through the Finance Bill 2024, labeling it as a potential instrument of harassment by tax authorities. They pointed out that the budget failed to address fundamental issues such as the broadening of the tax base and neglected opportunities to improve direct tax collection mechanisms.
“Instead of fostering a conducive environment for economic growth, the government has chosen to increase tax rates for businesses and impose higher capital gain taxes on properties,” remarked Mumtaz, outlining the adverse implications for entrepreneurial endeavors.
Furthermore, the association criticized the government’s recurring promises of economic documentation, asserting that previous pledges had not been effectively enforced. They urged the government to translate rhetoric into action by implementing concrete steps to expand the tax net and enhance revenue collection.
Anwar Kashif Mumtaz also expressed disappointment over the government’s failure to attract significant tax registrations under the Tajir Dost Scheme, which was intended to incentivize compliance among traders and small businesses.
“In contrast to global practices where there is a unified category of tax filers, Pakistan continues to distinguish between filers, non-filers, and now late filers,” lamented Mumtaz, highlighting the bureaucratic hurdles imposed on taxpayers.
The PTBA underscored that the budget’s provisions, including the redefinition of tax fraud and increased discretionary powers for tax officials, could potentially lead to arbitrary actions against taxpayers, further eroding trust in the fiscal system.
Concluding the press conference, Anwar Kashif Mumtaz asserted that the PTBA would continue to advocate for substantial amendments to the budget before its finalization, calling for a more balanced approach that prioritizes sustainable economic growth without disproportionately burdening the citizens.
The rejection of the 2024-25 budget by the Pakistan Tax Bar Association underscores growing discontent among economic stakeholders over the government’s fiscal policies. As the debate intensifies, the future trajectory of Pakistan’s economic policy hinges on addressing these grievances and fostering a more inclusive and equitable tax regime.
