KARACHI, June 13: The federal budget 2007-08 is a positive step towards a more equitable Pakistan, considering the increase in salaries of low-paid employees, enhancement of basic pay scales, increase of minimum wages of industrial workers and provision of subsidised food items at utility stores. This was stated in a press release by the budget and taxation sub-committee of the Association of Chartered Certified Accountants (ACCA) on Wednesday.

The sub-committee also hailed the budget for its allocation of Rs520 billion to the PSDP, direct taxation measures and exemption of income of microfinance banking institutions for five years.

However, it raised its concern on lack of funds allocated to energy, as well as environmental projects, and expressed reservations on the move to extend exemption of capital gains tax on listed securities and taxes of all types of dividends.

It also proposed a raise of 7-10 per cent in education expenditure as opposed to the current four per cent.