ISLAMABAD: Pakistan Muslim League-Nawaz (PML-N) president and Opposition Leader in the National Assembly Shahbaz Sharif has said the latest report of the International Monetary Fund (IMF) has exposed the “lies” of the present government regarding imposition of new taxes in the federal budget.
In a statement issued here on Tuesday, Mr Sharif said that the government had stated on the floor of the parliament that it had imposed Rs500 billion new taxes in the federal budget whereas the IMF report said that Rs750bn new taxes had been imposed on the nation, adding that the privilege and sanctity of the parliament had been damaged by the government’s lies about the new taxes.
He vowed to raise this important issue on the floor of the parliament. He also criticised the government for unprecedented increase in prices of electricity and gas.
The IMF in its report released on Monday had stated that Pakistan had entered a high tax environment for the foreseeable future with Rs1.56 trillion additional taxes this year, followed by another Rs1.5tr next year and yet another Rs1.31tr the year after.
The agreement signed with the IMF by Adviser to the Prime Minister on Finance Abdul Hafeez Shaikh and State Bank of Pakistan Governor Reza Baqir also requires an increase in electricity tariff again in August this year and ensures Rs1.3tr refunds from provinces out of the National Finance Commission share to honour its commitments with the IMF.
The projections contained in the document show that authorities have promised to increase FBR’s total tax collection from Rs3.94tr last year to Rs5.5tr this year and to Rs10.5tr by 2023-24, a cumulative increase of Rs6.564tr in five years.
Mr Sharif said the government was collecting these taxes from salaried class and businessmen of the country which was an economic terrorism. The opposition leader said that the government would not be able to achieve these revenue targets.
