(MENAFN- Khaleej Times) Pakistan?s federal budget for 2014-15 has drawn mixed reaction from expatriate community who complaint that the pro-business government has imposed little taxes on the country?s elite class halfheartedly.
the pakistani residents in the uae also expressed disappointment over the finance document which fails to address their genuine problems despite sending remittances worth billions of dollars from the emirate. they said present regime also ignored the contributions of overseas pakistanis and gave no incentives in budget to encourage them for more remittances and investments in the country.
several businessmen from abu dhabi and dubai said that the government did not do enough to tax the ultra rich people in a country where tax collection is less than eight per cent of the gross domestic production or gdp.
zubair mir chief executive of abu dhabi-based perth contracting termed the budget as ‘pro-poor’ which would boost productivity and development in the country. he said that allocations have been made for building hydro power projects motorways and roadways to link the country’s remote areas with mega cities in a move that is bound to boost development.
“these measures would boost business and construction activities and address the issue of electric-power shortage to overcome long load-shedding” mir opined.
highlighting positive features of the finance document he said that despite financial constraints the pml(n) government has increased the salaries of the government employees by 10 per cent fixed minimum salaries of workers at rs10000 and revised the pensions to rs6000 calling it a ‘bold step’.
“the allocation for poor and destitute amounting to rs85 billion through benazir income support programme would benefit millions who live below poverty line. the government has proposed around rs240 billion worth of new tax measures in the budget” he said.
on the taxation part mir said the government has withdrawn tax exemptions which would increase the revenues and reduce reliance on foreign donors. “non-tax payer ultra rich business class would have to pay extra for their travels likewise they have to pay double the tax on buying and selling the property. this measure would encourage them to come into the tax net” he said. leading physician and chief executive of talat medical centre dr talat butt termed the budget as ‘direction less’ and highly disappointing which has nothing to do with 50 per cent of pakistanis who are living below poverty line.
“the government could have encouraged the people to promote cattle farming bee keeping poultry farming and growing vegetables in their communities in order to better fight poverty. increasing the monthly aid to rs1500 a month would not help uproot poverty in any way” he said.
dr butt termed the government’s announcement for considering prizes for expatriates for remitting much needed foreign exchange ‘a joke and insult’ as government had no announcement to make in the budget. rizwan butt chief executive officer of ambrosia trading said that the government has taken cosmetic measures to increase the tax net. the rich class who does not pay taxes and leads a luxury life-style is indirectly taxed halfheartedly which means that burden would continue to be shared by the ordinary people.
he expected hidden taxes in the finance bill which will come anytime that can detail more harsh measures.
“the allocation for defence was increased by 10 per cent which was peanut comparing with the security challenges in south asia especially after the hostile governments taking office on eastern and western borders” he said.
ms rabia mahmood a sharjah resident said the budget has completely ignored the contributions of overseas pakistan and no fresh incentives were announced in the finance document. “we were expecting some kind of duty exemptions on consumer items some tax incentives on investment in property but all of our efforts and remittance contributions were ignored by the government.”
waseem ahmed a dubai-based banker said overseas pakistanis are major source of foreign exchange earnings after exports but they are disappointed over the budget as no new measures were announced to encourage the people to send more remittances to the country.
“i want to invest in housing segment in pakistan but as an overseas pakistani i get no extra benefit in terms of relaxation in taxes and duties although i used to remit a ‘reasonable money’ every month back home” he concluded.
— haseeb?khaleejtimes.com
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