People not likely to get any relief in the budget

[CMY]

KARACHI: Does the government have a magic-wand that it would use at the completion of 100-day of its formation and fulfil the commitments it made with nation for providing immediate relief under its 100-day Programme?

The answer is absolutely “No”. Progress of the government in addressing common man issues is trivial, but the actions that the current government has taken since its inception are anti poor and pro rich.

The information coming from various government departments says that common man would have to bear more burden of economy in crisis, as government is going to increase percentage of indirect taxes on consumer goods.

Information minister Sherry Rehman recently revealed in front of media that consumers would have to pay more. A political analyst comments, “she warned of the impending tax burden not to make the public aware of the situation, but to prepare people for accepting this bitter truth in advance otherwise they would come on roads and protest against government after the budget.”

Adding fuel to fire the government has started passing on the increase in international oil prices to the end users that is further increasing the all time high food and non-food inflation. Irrespective of the government decision being right or wrong the common man is paying the price of passing on oil prices to end users.

The government is also considering increasing the percentage of taxes levied on services and salaried classes in budget 2008-09. The tax authorities have also zeroed their sights on doctors and lawyers, sources said.

Potential sectors are continuously approaching officials not to levy any new tax or raise the rate of current taxes. For instance, the government has once again extended the extension of Capital Gain Tax (CGT) on securities transactions up to Jun 30, 2010, which was schedule to expire on Jun 30, 2008. Capital markets are availing this exemption since 1974.

The exemption of CGT in shares business is not a little loss of Rs2-3 billion, not even Rs20-30 billion. “The national exchequer could have collected Rs112 billion from local bourses under CGT head in the said fiscal year,” the Economic Survey 2007-08 states.

Now, introducing new taxes on real estate sector; increasing tax percentage on the import of luxury items (cars) and imposing duty on export of commodities (cement) are some options government is studying, sources said.

However, increase in minimum wages to Rs6,000; most likely increase in pension and government employees’ salary in range of 20 per cent are some good, but petty steps to allay the sufferings of poor masses.

The experts are of the view that the PPP and PML-N led coalition government is focusing more on political issues and less on economic problems. They added that government will for financial relief to the nation is so weak, as it is extensively busy in gaining its political targets i.e. impeaching President and reinstatement of deposed judges etc.

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