THE government announced on March 16 new taxes and increase in the existing tax rate on various commodities/items through ordinances instead of bringing reforms in the parliament. As the government has imposed a 15 per cent surcharge on income tax, there will be an extra burden on taxpaying Pakistanis, especially salaried persons. Instead, the government should bring some other sectors in the tax net such as agriculture, stocks, etc. Through promulgation of these ordinances, amendments have been made to Sales Tax Act 1990, Income Tax Ordinance 2001 and Federal Excise Act 2005. According to tax measures, 17 per cent tax has been imposed on tractors, while sales tax exemption has been withdrawn from fertilisers and pesticides. This would affect production, and prices of various basic commodities will be increased.

According to the amendments, general sales tax will be charged on ex-factory price of sugar instead of taxable value of sugar, i.e. Rs28.80, which means that the price of sugar may be increased from five to seven rupees. Sugar is an essential commodity and should not have been considered for such a decision.

The government has already approved two per cent surcharge on every unit of electricity. Therefore, the cost of production would be increased, and this has to be paid indirectly by consumers. The milk price has been increased by Rs10 a litre. Likewise, 17 per cent GST would be charged on export-oriented items on the sales of plant machinery and equipment. Fuel prices are already on the higher side. Steps must be taken for reduction in non-development expenditure instead of imposing new taxes. Enhancing taxes is not fair as well. The government should cultivate a tax culture where public pays taxes willingly. This could happen only when taxpayers are facilitated and see the benefits of taxpaying.

The government should impose/enhance tax and duty on luxury items such as on airconditioners, luxury vehicles, sale/purchase of shares, hotels and big restaurants, cinemas, gold, specialists'/consultants' fees, agricultural land, air tickets, rent on commercial buildings, and real estate agents.

New recruitment has also been banned by the government. Educated youths are already getting involved in criminal activities because of unemployment. The shortage of staff in pubic sector organisations is affecting the efficiency of these departments. Moreover, the private sector will reduce staff on the pretext of high cost of production.

There should be no GST/FED on food items and medicines or surgical instruments and agriculture items. There must be strict measures against smuggling/export of animals and meat. Moreover, traders should be given relaxation in importing milk powder, keeping in view the monopoly of local fresh milk sellers. I would suggest unemployment allowance for the people in 25 to 35 years age group. It should be at least Rs10,000 for holders of master's degrees, Rs7,000 for bachelors and Rs5,000 for those who have passed intermediate/matriculation.

I would also suggest government to introduce a small business account policy for skilled persons like carpenter, auto-mechanics, technicians, tailors, doctors, engineers, advocates and electricians. It would be beneficial if the SME sector and micro-finance credit is promoted, while sick industrial units should be revived.

The government should take all possible measures to improve the economy and boost exports while improving the purchasing power of the people.

NISAR AHMED Karachi