Today, former Finance Minister, Shaukat Tarin held a press conference in which he anticipated, “Inflation is going to increase in coming days, they have put numbers in the budget without thinking how they will get those.” He added, “such taxes will result in increased rates by banks, and this will negatively affect small business.” They will further increase prices of gas and electricity and impose petroleum levy of Rs. 7.5 billion. All of this will further surge average inflation by 34 to 40 percent.
He emphasized that these measures would cause closure of industries and increase in unemployment. He said that the tax imposed on 13 industries will make 45 to 50 percent of the tax revenue and they will ultimately increase prices. Shaukat Tarin shared his expectation of announcing another budget forced by the International Monetary Fund (IMF).
Moreover, he clarified that current government keeps on accusing former PTI government regardless of the fact that the country reached at the verge of bankruptcy due to the current government’s ‘incompetence.’ Former Minister for Finance also said that the government has imposed tax on some specific industries with a motive to safeguard their votes.
He expressed his point of view that common man will be greatly affected, unemployment and poverty will increase.
Coming to the immediate effects of these measures, he said that Pakistan Stock Exchange fell by 2000 points. Rupee which they claimed that improved by 4 paisa yesterday has again declined today as public is public has lack of trust on them.
‘Super tax’ will result in ‘super inflation.’
However, this was not the first time that Mr. Shaukat Tarin expressed his apprehensions about further inflation and increasing unemployment on media. He already rejected the new budget for the new fiscal year by the coalition government, criticizing it for further inflation and unemployment.