Record trade deficit becoming unmanageable: Butt

Author: Online

ISLAMABAD: The Islamabad Chamber of Small Traders said on Sunday said that record trade deficit is becoming unmanageable and it may soon result in new IMF loan and mini-budgets.

The trade deficit for eleven months has touched an all-time high mark of thirty billion dollars leaving the government with little options but to seek another IMF loan, it said, in a press release issued.

Delay or refusal by the IMF can be disastrous as the government will go for mini budgets which will be catastrophic for the poor and the limping economy, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.

He said that current situation is very alarming and a wrong decision by the policymakers can have very serious repercussions. He said the government continues to ignore meaningful reforms, which has increased its dependence on indirect taxation which was already tilted heavily on the wrong side.

Shahid Rasheed Butt said that the tax structure has increased the disparity in the distribution of wealth which is resulting in increased poverty, unemployment and extremism. He said the country is suffering from regressive tax system as over seventy percent of the taxes are collected through indirect taxation, he said, adding that government should enforce a proper direct taxation system to force elite to pay taxes.

He said million mobile subscribers paying heavy taxes despite the fact that earning of the majority of consumers does not fall under the taxable incomes. On the other hand, he informed out of 15 million rich and 25 million upper middle class only half a million file returns because they don’t trust the system. The system remains to support rich and suppresses the poor widening the income gap which is against the national interests, he added.

Published in Daily Times, July 3rd , 2017.

Share
Leave a Comment

Recent Posts

  • Business

Gold prices decrease by Rs.5,400 per tola

The price of 24 karat per tola gold decreased by Rs.5,400 and was sold at…

2 mins ago
  • Business

Rupee sheds 5 paisa against dollar

Pakistani rupee on Thursday depreciated by 5 paisa against the US dollar in the interbank…

2 mins ago
  • Business

CDNS decreases Savings Certificate, rates from Nov 4

The Central Directorate of National Savings (CDNS) has decreased the rates of return for its…

2 mins ago
  • Business

GCIL launches ‘Pakistan’s largest ASU plant’ in KP

Ghani Chemical Industries Limited (GCIL) on Thursday said it successfully commissioned “Pakistan’s largest Air Separation…

3 mins ago
  • Business

Maritime sector earns Rs 90 bln profit in last FY: Minister

Federal Minister for Maritime Affairs Qaisar Ahmed Sheikh on Thursday said Pakistan's maritime sector recorded…

4 mins ago
  • Business

Machinery imports up by 21.68% in Q1 of FY 2024-25

The imports of the overall machinery group experienced a substantial increase of 21.68 percent during…

4 mins ago