Miftah Ismail’s 7-point sarcastic take on PTI govt’s mini-budget

KARACHI: Former finance minister Miftah Ismail took a shot at the PTI-led federal government over yesterday’s mini-budget presented in the National Assembly.In a series of seven tweets on Thursday, Mr Ismail pinpointed the contradictions of the ruling party about its past positions and measures taken by it in the mini-budget. “On behalf of the tax filers of Pakistan I wish to congratulate the non-tax filers for winning and again being allowed to buy local & imported cars. Congratulations also to the car makers for again being able to sell cars to people who don’t even bother to register as taxpayers,” he wrote sarcastically.“Congratulations also to conglomerates and large holding companies who wouldn’t have to pay tax on inter-company dividends. Salaried and business individuals who receive dividends from companies will of course continue to pay tax.”The former minister, however, appreciated the exemption announces by the government to tax filers regarding withholding tax on bank transactions. “Congratulations to tax filers that they would not have to pay WHT on banking transactions. That’s a good step. I appreciate it. I also wanted to do it but didn’t find the fiscal space. Don’t know how Asad Umer sb found the space. Or has he given up trying to reduce the deficit?,” he maintained. “55% of FBR revenues come from the ports in the shape of duty, sales and income taxes on imports. Since the last mini budget in Sept rupee has devalued by another 13%. This means in these 3 mo FBR revenue should be above target by Rs 70 b. Instead it was Rs 176 b below target,” he added. He said that Pakistan will be faced with the largest fiscal deficit after the mini-budget. “After this mini budget we know this year we will have the largest fiscal deficit in Pak’s history and a larger federal deficit as % of GDP than the last 5 years. Govt hasn’t told us how it plans to plug this huge hole: print more money (inflation), get more debt or new taxes?.”Special Pakistanis to get away scot-free“Finally big congratulations to those special Pakistanis who have property abroad and who have NOT declared. Even if you get caught now, there will be no issue. FBR will just issue a new assessment order and you will get away scot free. Congratulations to those special people,” he said.Amnesty schemeMr Ismail said that PTI had opposed the PML-N’s amnesty even though people had to declare their property and pay a penalty.“Now they have given an amnesty for free. I wonder why the change of heart!,” he concluded. 

from The News International - Business http://bit.ly/2HBUwdJ