KARACHI, June 4: High-lighting a number of deficiencies in the budget 2012-13, tax consultants suggested that out-of-box solutions are needed to overcome financial crisis.

When all major macro-economic targets were not achieved in the fiscal year 2011-12, situation warranted for moving away from traditional budget-making mechanism, these experts stated.

The speakers at the post-budget seminar, organised by the Karachi Tax Bar Association (KTBA) here on Monday, discussed the budget 2012-13 with particular reference to direct and indirect taxation measures which are going to have an impact on taxpayers.A senior tax consultant, Syed Masoud Ali Naqvi, who chaired the seminar, while summing up the proceedings, stated that situation demands out-of-box solutions and adoption of non-traditional budget making mechanism.

He said when State Bank of Pakistan governor gave a true picture of state of economy, he was strongly criticised but the fact remains that the country needs a quick change to stabilise fragile and precarious condition of macro-economic fundamentals of the country.

Mr Naqvi said this is a country with a lot of potential where 68 per cent of the population is under 13 years of age which is an asset.

Syed Masoud Ali Naqvi said even the existing geo-political situation is in favour of Pakistan and what is needed is that it should be fully exploited for economic prosperity and wellbeing of the masses.

Majid Khandwala dilated on indirect taxes and said that most of the amendments in the Sales Tax Act had been through SROs.

He felt that cut in federal excise duty (FED) on several consumer goods, like cigarette, cosmetics, etc., would discourage smuggling through Afghan Transit Trade (ATT).

Abdul Qadir Memon, former president of Pakistan Tax Association, spoke on direct taxes and said that budget proposals have been announced in view of the election year.