WHIE the preparation process for the next fiscal budget is under, Adviser on Finance Hafeez Sheikh in an interview on Monday said the government would impose no new tax in the budget 2020-21 and that duty on many more items will be brought down to zero level to give boost to the industries.
Indeed the Coronavirus has taken a heavy toll on the already struggling economy of Pakistan. It is for the first time in seven decades that the country will witness a negative growth this year. Exports and remittances have also been badly hit. This situation warrants extraordinary measures and decisions on the part of the government to run the wheels of the economy and put it back on the path of stability. It is time to be more practical and analyze the opportunities and challenges offered by the current environment. Apart from reduction in taxes, it is also imperative that the fundamental problems of tax collection system are addressed and in this regard the suggestions could be sought from the country’s prominent tax experts. Only with enhanced revenues, the government can extend maximum relief to the vulnerable segments of the society at this critical juncture. Most importantly, serious consideration in the next budget should be given to the problems faced by fixed income groups and the salaried class who have been badly affected by the price hike. Soaring utility bills and education expenses of the children have become unbearable for them. Prior to the breakout of Covid-19, the public sector employees had also staged protests demanding for a reasonable increase in salaries. The government has constituted a Pay and Pension Commission but how its recommendations are always treated is also a no secret. Instead of waiting for its recommendations, a suitable raise should be given to the public sector employees. In fact the disparity that exists in the salaries of different departments must be removed with introduction of uniform pay scales.