Chairman of the Senate Standing Committee on Finance, Senator Saleem Mandviwalla, has warned that the upcoming federal budget will increase the financial burden on the public. Speaking during a television interview, he pointed to a planned rise in the petroleum levy as a major reason. He said the government intends to use this levy to cover a revenue shortfall of Rs700 billion.
Mandviwalla, a former finance minister, also criticized the Federal Board of Revenue (FBR) for its poor performance. He said schemes like the Tajir Dost Scheme (TDS), meant to bring traders into the tax net, have failed badly. The TDS was supposed to collect taxes from shopkeepers based on the value and size of their businesses. However, it has so far raised just Rs5.6 million, far below expectations.
He accused the FBR of still operating with outdated systems from the 1960s. He called for the recruitment of modern officers who understand technology and can use it to improve tax collection. Comparing Pakistan’s system to countries like Turkey and India, he said that without reforms, expectations of change at the FBR are pointless.
Mandviwalla confirmed that the budget would be a “standard-type” one, with little to no relief for ordinary citizens. He made it clear that people should not expect any significant financial support or subsidies. The focus, he said, would be on increasing revenue, not easing public hardship.
He also recalled that last year’s petroleum levy target was Rs1.28 trillion, already a 47.4% jump from the previous year. This year, he said, the government is also bound to impose a Rs5 per litre carbon levy starting July 1 under IMF conditions. This will keep fuel prices high and further strain household budgets.