Mini-budget appears to be more like IMF plan: Miftah Ismail

KARACHI: The budget presented on Tuesday by the incumbent government appears to be more like a plan by the International Money Fund (IMF), said former finance minister Miftah Ismail. 

“This 'mini-budget'  seems like an IMF budget," he said while speaking to Geo News on Tuesday after Finance Minister Asad Umar presented the amendments proposed for the federal budget 2018-19 in the National Assembly earlier in the day.

"The government has decided to go to the IMF but has yet to inform the public about it."

The Pakistan Muslim League-Nawaz leader criticised Pakistan Tehreek-e-Insaf's decision pertaining to payment of taxes, saying the previous government had barred non-filers from buying property and vehicles, but the incumbent finance ministry has removed the restriction. 

“Non-filers can purchase a car which brings no relief to the taxpayers. It would have been better to continue with the restrictions imposed on them."

In April, the PML-N government while presenting the sixth and final budget of their government's term had announced that non-filers would not be able to purchase property worth Rs4 million in the next fiscal year whereas filers would have to only pay one per cent tax on the purchase of properties.

Some of the amendments which were proposed by Umar included, an increase of withholding tax to 0.6 per cent on banking transactions for non-filers and the non-filers being allowed to buy vehicles and property.

Ismail further added, “Our government had decreased the tax imposed on those who earn more than Rs0.2 million, but the new government had increased it again.”

The PML-N leader further criticised the government for increasing gas prices in the country.

Moreover, Ismail said, the government has agreed to continue with the China–Pakistan Economic Corridor projects initiated during the PML-N’s tenure.

“PTI had started a campaign against the projects initiated but they have now accepted that the projects are in the interest of the country," he added.

Ismail further said the government has increased the tax imposed on bank transactions.

According to the new amendments in the budget, Rs200 will be charged on transactions over Rs0.1million.