In reference to the government putting higher taxes on businesses and wealthy individuals, Finance Minister Miftah Ismail stated on Thursday that there was nothing wrong with taxing the wealthy because they were “equipped to pay.”
At a news conference in Islamabad with Information Minister Marriyum Aurangzeb, he noted that “In Pakistan, it is the poor who have traditionally faced the weight of taxation.”
“But the Shehbaz administration has chosen to tax the wealthy’s income. We’ll make sure the cost is shared this time, he said, noting that this was demonstrated by the “progressive” and “historic” “the new fiscal year’s budget was revealed.
“You’ve always seen that prior administrations levied consumption taxes that disproportionately affected the poor. But this time around, we haven’t raised any consumer taxes or indirect taxes.”
The minister announced that the government has chosen to increase taxes on the wealthy and a few industries, including the sugar industry.
“Those with yearly incomes over Rs150 million will see an increase in tax of 1%, those with incomes over Rs200 million or more will see an increase in tax of 2%, and those with incomes over Rs250 million will see an increase in tax of 3%.”
He continued by saying that taxes have gone up even for businesses run by the sons of the prime minister. Ismail remarked, without going into greater detail, “Even my company would have to pay higher taxes today.
The minister earlier this month presented the federal budget of the coalition government for 2022–2023 to the National Assembly. The budget’s planned outlay of Rs9.5 trillion was almost a trillion rupees greater than the outlay for the previous fiscal year.
The International Monetary Fund (IMF) had worries about the authorities’ expected spending, which had caused a delay in enacting the budget.
Following a commitment by the government to raise an additional Rs436 billion in taxes, Pakistan and the Fund achieved an agreement on the budget on Tuesday.
According to sources, the government also agreed to implement a poverty tax of 1% on businesses making up to Rs. 150 million, 2% on those making up to Rs. 200 million, 3% on those making up to Rs. 250 million, and 4% on those making up to Rs. 300 million. The administration had only imposed a 2 percent poverty tax on people making Rs300 million or more in the initial budget.
Ismail reaffirmed at today’s news conference that Pakistan and the IMF had successfully reached a budget agreement.
“We will close the budget after I give a winding up budget address in the NA tomorrow,” the speaker said.
According to the minister, Pakistan has a tendency of borrowing money from foreign nations, which has increased the nation’s overall deficit.
“This forward-thinking budget will lessen our reliance on loans and funding and provide us true independence.”
Imran’s crisis has been resolved in Pakistan.
The finance minister claimed that the economic policies of the previous PTI administration had pushed the government to make difficult choices.
He said that during the PTI’s rule, the gap between spending and revenue was the greatest in history and that “Imran Khan and his party drove Pakistan towards the four worst historic budget deficits.”
“I want to let the people who lecture us today know that you left the nation on the verge of dissolution. Such a precarious situation has never previously occurred in Pakistan. You left behind a billion-rupee deficit. Where were you then when the country needed you?”
Imran allegedly broke his agreement with the IMF when he learned he would lose the no-trust vote, putting the nation in danger of default, according to the ministry.
You claim that people shouldn’t be impartial, thus in that situation, you ought to support Pakistan.
The minister continued by saying that the coalition administration works round-the-clock to save the nation from its catastrophic financial predicament. The rupee is strengthening, the stock market is increasing, and gradually our financial situation is improving.
Ismail acknowledged that Pakistan’s inflation rate was still very high but assured that things would improve “in a month or two.”