Presenting the shadow budget 2017-18, leader of MQM-P Dr Farooq Sattar said that simple measures should be taken to increase the tax base like levying taxes on agriculture sector by amending the Constitution. He also suggested transferring the agriculture sector from provinces to the federal government, so that it should be taxed as the agriculture sector contributes 21 per cent in the GDP but the tax received from it is around one per cent of the total tax base.
"Agriculture tax should be imposed at income over one million rupees, so that the small farmers are not hit by this tax," he added. Farooq Sattar also suggested that certain taxes including the petroleum levy should be withdrawn and prices be maintained through administrative measures.
He said that political autonomy cannot be achieved without economic independence, and the country needs to get away from dependence on foreign and local loans. The MQM is the first political party in the country that has initiated the process of presenting shadow budget of the federal government. The MQM-P leader said that the budget should be simple and clear to reflect the government's policies and encourage the investors to participate in the economic growth.
He also criticised economic policies of the PML-N government, saying that its economic policies are not only vague but also flawed ones as they have obtained excessive foreign and domestic loans to run the affairs. "We cannot run the government with loans, and this policy has also siphoned off capital from getting to private sector," he said, adding that the government's policies are making the poor poorer by imposing too many taxes at all items consumed by ordinary citizens.
Farooq Sattar also suggested for strengthening local governments to generate their resources as well as promote economic activities at local level. The shadow budget of MQM-P has suggested to reduce defence budget to Rs 962 billion compared to the government's expectation of Rs 995 billion, the party has also suggested reduced subsidies and federal government expenditures at Rs 659 billion and Rs 395 billion respectively.
The shadow budget also shows that the expected government expenditures and payment of subsidies will be Rs 635 billion and Rs 711 billion respectively. Dr Sattar said that the growth rate for the current fiscal year will be around four per cent when the revised figures will be presented next year, because the government has no plans to develop SMEs and export-oriented industries and harness the potential of overseas Pakistanis.
Copyright Business Recorder, 2017