ISLAMABAD: Senior Vice President of Pakistan Muslim League(N) and Member National Assembly Shahid Khaqan Abbasi Saturday observed the tax collection target of

Rs 5.5 trillion set for the next fiscal budget would increase inflation and put burden on common man.

Continuing debate on the budget here at National Assembly, he claimed the budget was made by International Monetary Fund (IMF) and the government could only collect Rs 5.5 trillion taxes in the next financial year by increasing inflation and hiking gas and electricity prices.

The incumbent government could only collect Rs 4,000 billion in taxes in the ongoing fiscal year, he added.

He claimed the current government increased deficit between spending and expenditure from Rs 2200 billion to Rs 3600 billion.

Abbasi said previous PML-N government paid Rs 1500 billion in interest while

Rs 2900 billion interest would be paid this year.

He criticized the economic performance of the government  and said led to increase in policy rate, inflation and interest payments. This year Rs 1100 billion would be spent on defence expenditure which in real terms had decreased, he added.

He said Pakistan Muslim League-N government announced the tax reforms package and after party left the government, Rs 124 billion were collected under the tax amnesty scheme announced by it.

The government could only collect taxes if people had confidence in it, he said adding, PML-N gave tax exemptions to those who were earning Rs 100,000 per month.

The government was putting burden on even those who were earning Rs 50,000 per month, he claimed.

Abbasi said the biggest loophole in tax system was non-collection of tax from real estate sector. The irrational tax regime would not resolve problems in an economy which was shrinking, he noted.

He claimed end of zero rating facility for exporters on the direction of IMF would hit the business hard.

If the leaders would not pay taxes, then people could not be compelled to pay taxes, he added.

He said in the last 25 years, no big structural reforms could be brought because the economy was not growing fast enough.

He expressed concern that the inquiry commission on 10 years loans would question the decisions of the parliament, cabinet and prime minister.

Shahid said despite all the fiery speeches in Parliament nothing substantive was changed in the budget during the last 25 years. “Our budget only maintains the status quo and nothing changes.”

He stressed that free and fair elections should be held to find a solution to national problems.

He said production orders of members of assembly were to ensure that the government should not dominate the house on the basis of its numerical superiority. Traditions should be observed on the issue of production order, he added.

Abbasi said the production orders of two members were issued and two other members were not brought to the house. It was right of the member to speak in the house and was also obligation of the Speaker of the house to ensure right of the members. —APP