Asad umar will totally hate this budget.

[jee_nee_us]

This budget is not a budget but only a layout of imposition of taxes on public , this budget sets pakistan up for five more budgets like this where pakistan can not increase their exports and inflation will grow rapidly. This budget also defies the naya pakistan housing scheme where you can see the rise in prices of 'sarya' and çement'.

The price of milk formula for kids has already increases by more than 20 percent and after this budget there will be more increase in the price. Instead of bringing the non paying businessmen category into the tax net the already paying salaried category has been burdened even more with taxes.

Asad umar was all for ease of doing business and increase of exports but the budget today don't think that any of the exporters community will be happy. This budget is a perfect recipe of more depression for the public who were already under lot of stress because of inflation.

 

[hans271270]

It is this budget or default wake up why did u nothing in the last 10 years you voted the worst corrupt inefficient government who brought to the door step of default so now ponder you can only rescue your self no free handout no friendly aid ponder and think do u want to survive and be independent or ghulami duniya key

 

[Shahid Abassi]

Don't consider it a budget but a medicine for the disease of which our economy is suffering.

 

[insouciant]

I'm not sure if I can agree with you. I need to hear the perspective of leaders of zero-rated industries about the impact of the budget on their exports!

You are looking at things from a very narrow-angle. Pakistan today is struggling with two types of deficits: Current account deficit and fiscal deficit. And they both are counter to each other! If you'll improve one, the other will go up! Sometimes imposing taxes is good for the overall economy and maintaining prices. If you won't impose taxes on the public/industry, you won't reduce your fiscal deficit, which will increase your borrowing resulting in further depreciation of the rupee and more inflation!

So you have to find the optimum point that'll give you least current account and fiscal deficit! An industry expert or an economist who has worked on the budget models can tell us that!

This budget is not a budget but only a layout of imposition of taxes on public , this budget sets pakistan up for five more budgets like this where pakistan can not increase their exports and inflation will grow rapidly. This budget also defies the naya pakistan housing scheme where you can see the rise in prices of 'sarya' and çement'.

The price of milk formula for kids has already increases by more than 20 percent and after this budget there will be more increase in the price. Instead of bringing the non paying businessmen category into the tax net the already paying salaried category has been burdened even more with taxes.

Asad umar was all for ease of doing business and increase of exports but the budget today don't think that any of the exporters community will be happy. This budget is a perfect recipe of more depression for the public who were already under lot of stress because of inflation.

 

[Respect]

asad umar would have done nothing special regards to budget. The reality is Pakistan is in debt and the main reasons are the 2 previous political parties. Now how can PK get out of this debt? if someone comes along and pays PK there debt of for them or some kind of relief or increase of taxes.

When govt wants to bring the looters of the country too justice and try to recover money back then there are some crying foul of injustice.

to be honest PPP and PML N should stay quite when it comes too economy matters

Any better ideas on how too get a better budget.

 

[Sohail Shuja]

I'm not sure if I can agree with you. I need to hear the perspective of leaders of zero-rated industries about the impact of the budget on their exports!

You are looking at things from a very narrow-angle. Pakistan today is struggling with two types of deficits: Current account deficit and fiscal deficit. And they both are counter to each other! If you'll improve one, the other will go up! Sometimes imposing taxes is good for the overall economy and maintaining prices. If you won't impose taxes on the public/industry, you won't reduce your fiscal deficit, which will increase your borrowing resulting in further depreciation of the rupee and more inflation!

So you have to find the optimum point that'll give you least current account and fiscal deficit! An industry expert or an economist who has worked on the budget models can tell us that!

Increasing taxes on the people who are already paying tax is one easy formula for any Govt to increase their revenue and decrease the fiscal deficit. However, on the other hand, keeping the taxes steady but getting the non-tax payers into the tax net is a way which is the real medicine for this ailed economy. Though, even after very tall claims of accountability and amnesty and bla bla, it shows that the Govt do not have a stable resolve against the tax evaders. They are also relying on the same tactics as previous Govts did.

For your kind information, Fiscal deficit is not necessarily tied to the current account deficit. If your exports increase, you also collect much duties and taxes from them and this money will go to narrow the gap of fiscal deficit. Although, the current budget does not appear to be much export friendly either.

 

[insouciant]

I'll advise you to refrain from making generalized statements if you don't know your numbers! It looks bad on you!

(in billions)	2018-2019	2019-2020	Increase %
Direct Taxes	1659	2082	25%
Indirect Taxes	2491	3473	39%

Direct Taxes are targetted to increase by 25%. Unfortunately, I'm not an oracle like you. So, I'll reserve the verdict on Amnesty scheme when actual figures will come out next month!

Also, please familiarize yourself with Twin deficits Hypothesis. It'll not only open your eyes to the relationship between current and fiscal deficit but it'll also make you aware of its significance especially in third world countries like ours! https://www.theigc.org/wp-content/uploads/2016/09/Sakyi-Opoku-2016-working-paper.pdf

I rest my case now! ?

Increasing taxes on the people who are already paying tax is one easy formula for any Govt to increase their revenue and decrease the fiscal deficit. However, on the other hand, keeping the taxes steady but getting the non-tax payers into the tax net is a way which is the real medicine for this ailed economy. Though, even after very tall claims of accountability and amnesty and bla bla, it shows that the Govt do not have a stable resolve against the tax evaders. They are also relying on the same tactics as previous Govts did.

For your kind information, Fiscal deficit is not necessarily tied to the current account deficit. If your exports increase, you also collect much duties and taxes from them and this money will go to narrow the gap of fiscal deficit. Although, the current budget does not appear to be much export friendly either.

 

[Sohail Shuja]

I'll advise you to refrain from making generalized statements if you don't know your numbers! It looks bad on you!

(in billions)	2018-2019	2019-2020	Increase %
Direct Taxes	1659	2082	25%
Indirect Taxes	2491	3473	39%

Direct Taxes are targetted to increase by 25%. Unfortunately, I'm not an oracle like you. So, I'll reserve the verdict on Amnesty scheme when actual figures will come out next month!

Also, please familiarize yourself with Twin deficits Hypothesis. It'll not only open your eyes to the relationship between current and fiscal deficit but it'll also make you aware of its significance especially in third world countries like ours! https://www.theigc.org/wp-content/uploads/2016/09/Sakyi-Opoku-2016-working-paper.pdf

I rest my case now! ?

Your post #4 on this thread says that Fiscal and Current account deficit run counter to each other. If one goes in deficit, the other will conversely narrow the gap.

Now I will humbly ask you to revisit the theory of Twin Deficit. It simply states that if one account goes down, it brings the other one down as well, in tandem. That is why it is called the "Twin Deficit" theory.

Moreover, I am also unable to comprehend what you are trying to propose by your statistics? 25% increase in direct taxes and 39% increase in Indirect taxes, what does this mean rather than supporting my argument that the tax rates are being increased rather than the number of people who pay tax.

 

[insouciant]

I think maybe it's difficult for you to read the paper and easier to make up a story. So for your convenience, i'm attaching the actual graph between the two relationships. I hope you can interpret a negative correlation from the graph yourself. ? ? ?

Source: https://en.wikipedia.org/wiki/Twin_deficits_hypothesis

Sorry, I just read your post again. I thought you were referring to there is only an increase in indirect taxes and no increase in direct taxation in this budget. Hence I shared the data! My mistake!

Increase in # of filers is a FBR issue, not a Budget issue. So I seriously don't know what you wanted to see in the budget about it! It would totally depend on the implementation of penalties on evaders and non-filers! If in July you'll capture just 50 non-filers and send them to jail and show that on media, I think 80% of the nation will fix itself! Let's see what FBR will do!

Your post #4 on this thread says that Fiscal and Current account deficit run counter to each other. If one goes in deficit, the other will conversely narrow the gap.

Now I will humbly ask you to revisit the theory of Twin Deficit. It simply states that if one account goes down, it brings the other one down as well, in tandem. That is why it is called the "Twin Deficit" theory.

Moreover, I am also unable to comprehend what you are trying to propose by your statistics? 25% increase in direct taxes and 39% increase in Indirect taxes, what does this mean rather than supporting my argument that the tax rates are being increased rather than the number of people who pay tax.