PTI government Finance Minister Asad Umar presented the amendments the PTI-led government is bringing to the federal budget announced by the outgoing PML-N government in May this year.Despite of pressure from all corners, outgoing Govt didn’t refrain themselves presenting the budget despite of their expected departure from government just after weeks of this activity.To estimate the expected direction of newly formed government economic reforms ,Investors been waiting anxiously and stock market showed inactivity and decline in recent days.
Stock market has reacted favorably to the mini budget announcements so far and positive trends are prevailing in market since then.The announcement contains pretty straightforward short-term stabilizing measures.
“The bill is anything but populist”
— Shahrukh Wani, researcher at Blavatnik School of Government, Oxford
Star point of budget is that Govt looking serious in tightening the screws on high-income earners with more taxes , it was pretty much expected and required in current economical conditions.Extensive tax breaks to high income earners seems to be a wrong move by economic experts and impacted over all revenue stream for government.
In recent times,both high revenue sectors of Pakistan,auto and real estate industry showed a decline after May budget announcement in which it was declared that purchase of a new car and property exceeding Rs4 million illegal for non-filers.Car industry posted a negative impact in recent days after this announcement. In this mini budget , this condition is lifted and finance minister claimed that the lifting of the ban on non-taxpayers from acquiring cars or land is due to pressure from overseas Pakistanis, while the opponents accused of PTI by give in to the demands of powerful real estate developers and auto industry giants.
Very disappointed that PTI govt has lifted the ban on non-taxpayers from buying new cars and expensive land. We were under intense pressure from auto companies and land developers but we didn’t budge. But today I am sorry to say automakers have won and Pakistani taxpayers lost.
— Miftah Ismail (@MiftahIsmail) September 18, 2018
Keeping oversea point of view in real estate market , PTI govt initiative seems positive in long term as people earning outside the Pakistan hold a huge chunk of real estate investments and most of them do not file their Tax return due to overseas income.This amendment has impact on both side , negative and positive and upcoming times will reveal its final impact but surely in short term this news brought a new life in dull paced industry and investors are expecting increase in sale – purchase activity.
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