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This is in response to the article “The Budget and Beyond” which rightly makes a strong argument against the negative impact of the recent budget’s new and disproportionate taxes on the working class. In short, the government has failed miserably in fulfilling its promise to the people that this budget would be different from the previous ones and would benefit the masses.
Instead of giving the poor a respite from the hyperinflation for which they are least responsible, the budget has once again exacerbated their suffering by imposing additional taxes on electricity, petrol, diesel, groceries, real estate, etc. The main reason for the surge in taxes is to negotiate a new deal with the International Monetary Fund (IMF) to somehow keep the national economy afloat. The disastrous budget has made the fault lines of the current power system visible, and the government has been unwilling to end the tax exemptions that continue to be provided to the civil and military bureaucracies. Similarly, the retail and agricultural industries, which have significant political influence, have been left out of the taxation. Some tax exemptions have been removed due to the insistence of the IMF, but countless protections remain. Flawed policies have held back economic development. We need a change that benefits the masses, not just the privileged.
It is totally unjustifiable to burden poor families with new taxes just to get IMF assistance. The government should also bring the rich and powerful into the tax net to reduce the burden on the poor. Moreover, the government should look back to the past and must learn from past events to understand why every year every government has to knock on the door of the IMF to keep afloat the economy. Although the Budget claims to be pro-public and tries to minimize hardship, it has severely affected the poor and small businesses.
The consequences of this distorted system are far-reaching. These unfair taxes further strain the already tight budgets of middle-class families. Money that would otherwise be spent on food, rent, or education is diverted to government coffers, leaving many in financial ruin. This inhibits economic growth because these families have less disposable income. Time is of the essence on this critical issue. The government and the opposition should stop blaming each other for the abyss the country has fallen into and instead make a collaborative, sincere, and extraordinary effort to somehow move the country in the direction of economic growth and mass prosperity.
Ahmed Malik
Lahore
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