ISLAMABAD: Finance Minister Muhammad Aurangzeb is addressing the post-budget press conference a day after unveiling an expansionary budget proposal of Rs18.8776 trillion for FY25.
In his first budget, the finance minister on Wednesday proposed raising both direct and indirect taxes to a historic high, showing that a loan deal with the International Monetary Fund (IMF) to bail out the economy outweighs the relief direly needed by the inflation-broken masses, whose incomes have hit rock-bottom in recent years.
The new raise in taxes would fetch additional revenues of Rs3.8 trillion in line with the IMF demands.
The budget, which many believe is designed to meet IMF requirements for securing another $6 to $8 billion loan under the medium-term Extended Fund Facility (EFF), marks a 25% increase over the outgoing fiscal year’s outlay.
Despite its expansionary nature, the government has proposed historically-high additional taxes through various adjustments and new levies, potentially increasing the burden on already strained taxpayers.
The budget includes raised taxes on salaried classes and the removal of certain tax exemptions.
It also aims to increase spending but may hinder efforts to control inflation.
Additionally, higher taxes could exacerbate the price situation. The budget does not mention any austerity measures in government expenditures but rather focuses on increased spending.
