Pakistan Tax Bar Association (PTBA) has strongly criticized the recent tax increases on salaried individuals and sales tax, labeling them as oppressive. PTBA officials have expressed concerns that the expansion of powers granted to Federal Board of Revenue (FBR) officials will result in increased harassment of taxpayers. PTBA President Anwar KashifMumtaz, Senior Vice President Muhammad Zubair, General Secretary RehanSiddiqui, and Treasurer Syed WasimHashmi have declared the fiscal year 2024-25 budget as counterproductive to economic activities and detrimental to business operations.
“The burden on already struggling citizens has intensified,” stated Mumtaz, highlighting that the finance minister failed to meet public expectations. He emphasized that the increased taxes on the salaried class further strain those already contributing to the tax system. He also noted that the hike in sales tax would negatively impact the business community. “The fundamental issue with our economy is not merely tax collection but its documentation,” Mumtaz added. “The budget has taken inadequate steps in this direction. The announcements lack novelty, and implementation remains a significant challenge.”
Mumtaz warned that the increased powers for FBR officials would likely lead to greater taxpayer harassment, suggesting that the government should prioritize digitalization to reduce human interaction and minimize abuse of authority.
Additionally, he criticized the introduction of a late filer category, arguing that globally, only a filer category exists. He pointed out the inconsistency in restricting non-filers from traveling abroad while remaining silent on the travel restrictions for the spouses of filers. The PTBA’s critique underscores the broader discontent with the budget, calling for more efficient and equitable measures to enhance economic stability and taxpayer compliance.
