PESHAWAR: The Islamabad Chamber of Small Traders on Monday said record trade deficit is becoming unmanageable and it may soon result in new IMF-loan and mini-budgets.
The trade deficit for eleven months has touched an all-time high mark of 30-billion-dollar leaving the government with little options but to seek another IMF loan, it said.
Delay or refusal by the IMF can be disastrous as the government will go for mini budgets which will be catastrophic for the poor and the limping economy, said Patron of Islamabad Chamber of Small Traders Shahid Rasheed Butt in a statement.
He said current situation is very alarming and a wrong decision by the policymakers can have very serious repercussions. The government continues to ignore the meaningful reforms which has increased its dependence on indirect taxation which was already tilted heavily to the wrong side, he added.
He said the tax structure has increased the disparity in the distribution of wealth which is resulting in increased poverty, unemployment and extremism.
The country is suffering regressive tax system as over seventy percent of the taxes are collected through indirect taxation, he said, adding the government should enforce a proper direct taxation system to force the elite to pay taxes.
He said a million mobile subscribers are paying heavy taxes despite the fact that earning of the majority of consumers do not fall under the taxable incomes.
On the other hand, he said, out of 15 million rich and 25 million upper middle class, only half a million file returns because they don’t trust the system.
He said the system remains to support the rich and suppresses the poor widening the income gap which is against the national interests.
