KARACHI: With consumers already bearing the brunt of food inflation, market observers do not expect a significant price reduction in the federal budget for fiscal year 2022-23 (FY23) to be announced today In view of the conditions of the International Monetary Fund (IMF). The government should meet to secure the loan.
The market is already full of reports of the levying of general sales tax, withholding tax, and customs duty, and windfall tax.
Fahad Rauf of Ismail Iqbal Securities Research said, “I do not believe the government will take any extraordinary measures to provide significant price relief to consumers, which means the government’s relief on increasing payments under the Benazir Income Support Program, Ehsaas Programme. , cuts in electricity and gas tariffs for low-income people, and some cuts in utility store items.
He said that the tax revenue collection for FY 2013 is estimated to increase from Rs 6.1 lakh to Rs 7.25 trillion, thus indicating additional taxation of over Rs 400 billion in FY 2013 budget to meet the revenue target. Is.
“This is an IMF budget which cannot contain any relief for the general public in respect of the steep fall in the prices of various essential commodities,” Rauf said. per liter to Rs 300 per litre.
He estimated that the June Consumer Price Index (CPI) could go up to 16 per cent between July 19-20 pc due to increase in petroleum, utility and food prices. The next five to six months appear to be extremely tough, which will haunt the consumers,” said Rauf. The CPI in May was 13.8 per cent.
He suggested that the government consider providing maximum relief in utility charges and prices of essential commodities to low-income people while taxing the rich, including the real estate sector.
Fareed Qureshi, general secretary of Karachi Retail Grocers Group, ruled out any incentives from the government to control prices, which has been under constant pressure due to depreciating rupee against the dollar and rising diesel prices.
He said that the government is not in a position to give huge subsidy to bring down the prices. Instead, he feared that the government is considering increasing taxes and duties on various products.
Anees Majeed, patron of the Karachi Wholesalers Grocers Association, said that the government should make efforts to limit further increase in prices of essential commodities by controlling the rupee-dollar parity and diesel prices and avoid raising taxes and duties on local goods. .
Umar Islam Khan, general secretary of the Pakistan Vegetable Manufacturers Association (PVMA), said reports are circulating ahead of the announcement of the new budget about a 10 percent increase in customs duty on palm oil imports. 7,190 per tonne. GST, 6 per cent hike in withholding tax from 2 per cent to 6 per cent, and a 3 per cent windfall profit tax.
Published in Dawn, June 10, 2022