LAHORE: The new taxes and duties of Rs 40 billion will trigger inflation and hyper-inflation in the country, Lahore Tax Bar Association (LTBA) president Munsha Sukhera has said.
Talking to Customs Today, he said that the newly imposed taxes would reduce purchasing power of common man. He said that tea, tomatoes, fruits and vegetables are not luxury items and should be exempted from extraordinary taxation.
“The new Rs 40 billion taxes will reduce purchasing power of the consumers and as a results of it inflation and hyper-inflation will take place,” he said.
Actually, the government has been collecting 95 percent indirect taxes in the name of direct tax due to which the tax burden is borne by the consumers as prices of basic necessities inch up after every tax, inviting inflation and hyper-inflation, he said, adding that this type of taxation has adverse impact on the economy. He said that indirect taxes push up unemployment, reduce purchasing power of consumers while investment, consumption and GDP tend to decrease. As a result, he said, the rich becomes richer and the poor becomes poorer.
“We need to levy higher taxes on luxury items and minimum tax on daily use items,” he said.
He added that the government should impose wealth tax in order to increase revenue instead of the items which are being used to meet the day to day needs.
He said that the tax should be used for productive purposes while accountability of tax money should be made necessary.
