FINANCE Minister Ishaq Dar has, instead of expanding the tax base by taxing agriculture etc, taxed the already taxed. All over the world mutual funds are a vehicle for savings, primarily for retail investors.

In Pakistan, which has one of the lowest savings ratios in the world, the government has allowed a tax credit to retail investors by investing in mutual funds.

Contrary to his statement about simplification of tax returns, this process has been made more cumbersome, as now the investors will have to claim it directly from the FBR. We all know about the efficiency level of the FBR. To add insult to injury, the budget has recommended 16pc FED on top of the 16pc provincial sales tax. It amounts to double taxation. Such measures may sound like the death knell of this fledgling industry.

ARSHAD HUSSAIN Karachi