No chance of default: Tola
KARACHI: State Minister for Revenue and Chairman Reforms and Resource and Mobilisation Commission (RRMC) Ashfaq Tola on Saturday dispelled the rumours and said Pakistan will not default on its financial obligations.
Speaking at the post-budget session, organised by the Korangi Association of Trade and Industry (KATI), Mr Tola emphasised that out Rs9,200 billion revenue target projected for 2023-24, a significant portion of Rs9tr could be collected without any difficulty.
He assured the audience that the government had taken measures to provide historic relief to small businesses through the budget. He acknowledged that the auto and electronics sectors were facing the most significant challenges.
According to Kati’s press release, Mr Tola further clarified that the government had not introduced any tax amnesty scheme in the budget and that any ambiguity related to such a scheme would be resolved before the International Monetary Fund (IMF).
He lamented the dominance of the cash trade system in Pakistan, highlighting that only three per cent of the population was currently contributing 90pc of the tax revenue.
He stressed that the budget had been meticulously designed, considering the needs and circumstances of various sectors.
He criticised the previous government for the negative impact caused by the suspension of the China-Pakistan Economic Corridor (CPEC) programme.
Kati President Faraz-ur-Rehman called for the government’s intervention in controlling the value of the national currency and pointed out the ongoing challenges faced by the business community, including delayed customs clearance and persistent shortages of raw materials.
Zubair Chhaya, Deputy Patron-in-Chief of Kati, expressed concerns about the increase in withholding tax and the complex tax regime, which instilled fear among taxpayers.
He called for clarity regarding the distinction between filers and non-filers, asserting that tax savings for filers often ended up being spent on responding to tax-related notices.
Karachi Chamber of Commerce and Industry president Tariq Yusuf criticised the government’s traditional budget claiming that it perpetuated the same old formulas. He argued that those already paying taxes were burdened further while non-filers enjoyed exemptions.
Published in Dawn, June 18th, 2023
