Ruling government has burdened common man with indirect taxation: Ali Haider Zaidi

Quite on and off, PTI has pointed out towards the ruling government’s inefficiency and also has been seen comparing it with the previous government of Zardari.

PTI has often criticized the ruling government of Pakistan Muslim League-Nawaz’s economic management and has stated that it is worse than the Pakistan Peoples Party’s.

Peace Activist of PTI Ali Haider Zaidi in his latest tweet criticized PML-N and its horrible GST and taxation policies which have further burdened the common man.

Ali Haider Zaidi stated that the present government has failed on its promises of getting the rich to pay their part of taxes in which they have broken down even the begging bowl of poor and have ended the promises of handling the energy crisis as well.

Since June 2013, the government of PML-N has added a huge amount of more than Rs 4.7 trillion to the debt of the public and has consequently put the common man in Pakistan under a debt burden of Rs 112,000 compared to Rs 85,000 in May 2013. The burden can be estimated to be of 31.8% increase.

The Institute for Policy Reforms (IPR) is an independent and non-partisan think tank; IPR lately put forward a fact sheet where it stated how the government played its part in the recent flare up of taxes on petroleum products and on other common products.

The report released in 2015 pointed out several issues which highlighted the incompetence of the government.

Referring to the latest taxation on petroleum products, IPR stated the following:


 “Three types of taxes are levied on these products, namely, import duty, general sales tax (GST) and the petroleum levy. The combined revenue generated from these taxes on petroleum products was Rs 520 billion in 2013-14, equivalent to 35 per cent of the total revenue from indirect taxes at the federal level. The contribution of the GST on these products was Rs 400 billion, followed by Rs 103 billion from the petroleum levy and Rs 17 billion from the import duty,”

IPR also highlighted the decline of oil in the international market and stated the reason for it to be the loss of Rs 70 billion revenue annually.

“Consequently, the government has moved recently through promulgation of SRO 1152(1)/2014 to raise the GST on petroleum products (excluding furnace oil) from 17 per cent to 22 per cent initially and then to 27 per cent. In proportionate terms, the increase in the tax rate is almost 60 per cent. This is the largest SRO in the history of Pakistan regarding its revenue impact,” it states.

Related to the issue, Ali Haider Zaidi criticized the government and its inability to revamp FBR in expanding the tax net which has lead to the burden on the economy of the state and also on the life of a common citizen of Pakistan.