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Monday, June 10, 2024

Miftah Ismail admits his mistakes

Finance Minister Miftah Ismail has admitted he made mistakes while deciding on the super tax.

As the nation buckles under the recent onslaught of financial burden in the form of taxes, Finance Minister Miftah Ismail has admitted that it was his failure. He made the comments during an interview for a private media channel.

The talk had turned to the super tax that the government announced last week. Winding up the budget debate in the National Assembly on Friday, Finance Minister Miftah Ismail said the government introduced an initiative under which traders, both small and big, will pay a fixed tax which will be charged through their shops’ electricity bills.

The decision was met with much criticism as the burden will eventually increase on the salaried class which is struggling to make ends meet due to the incessant price hikes in Pakistan.

“It is my fault,” Miftah Ismail said.

Read more: Shaukat Tarin: Inflation is going to increase in coming days

Moreover, the International Monetary Fund (IMF) had raised issues with Pakistan’s federal budget, claiming that it needs to take additional measures. As a result, the government decided to impose a greater tax on salaried individuals.

People earning between Rs. 50,000 and Rs. 100,000 per month would now be charged income tax of 2.5% against the fixed rate of Rs. 100 that had been announced in the budget speech earlier this month. For earners of Rs. 100,000-300,000/month, the proposed tax rate has been jacked up to 12.5 %. Regarding this, Miftah Ismail said it was his fault that he was not able to convince the IMF.

“It was my mistake. I was not able to do it,” Miftah Ismail said.

Miftah Ismail getting replaced?

Finance Minister Miftah Ismail is the target of heavy criticism due to the storm of price hikes in Pakistan as a result of IMF demands. The Finance Minister has been consistently taking measures that are causing Pakistan’s economy to suffer.

There are speculations that he will get replaced by former Finance Minister Ishaq Dar who has confirmed his return to Pakistan. According to reports, Prime Minister Shehbaz Sharif has asked Ishaq Dar to return and head the economic team.

Reacting to the rumors, Minister Miftah Ismail said he would be content with being replaced with senior PML-N leader Ishaq Dar and would happily vacate the post for the latter if the party leadership decided to do so.

Read more: Ishaq Dar’s health is better now, returning to save economy