Tax the Elite
ISLAMABAD: Former finance minister Miftah Ismail emphasized that the nation’s survival hinges on taxing the elite class.
Miftah argued that fiscal challenges cannot be resolved unless the wealthy are subject to taxation. He recommended that the government reduce expenses as a means to bolster the economy.
He said that taxing the existing taxpayers would not serve the purpose. Hence, the government should target the elite class to enhance tax collection, he added.
Ismail pointed out that the impact of a 40% inflation rate has not only adversely affected the middle class but has also begun to impact the upper class.
He criticized the government’s delayed decision-making, stating that in 2017, taxes on salaried individuals were raised by 15. It led to the the current collection of 261 billion from salaried individuals, compared to mere 61 billion from major exporters.
Furthermore, Ismail noted that the government has not imposed property and agriculture taxes in the provinces. He also expressed opposition to taxing retailers and wholesalers.
Previously, Miftah Ismail advocated for continuing load shedding during the summer season to conserve energy and proposed early market closures.
He also suggested raising gas prices during the winter season and shifting the load to electricity appliances, along with supporting market closures at 8 pm as part of an energy conservation plan.
Ismail stated that continuing summer season load shedding is the only viable option for Pakistan to reduce expenditures on generating expensive electricity.
Regarding relief for electricity consumers, he believed that the IMF would reject the relief proposal to 90% of power consumers using up to 400 units.
He, nonetheless, supported the caretaker government’s decision to provide relief to consumers using 200 units.
In the context of IMF demands, Ismail suggested the privatization of loss-making national entities as a viable option to address the issue.
