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Asad asks govt to reconsider tax on sugar, cooking oil

By Our Staff Correspondent

ISLAMABAD: PTI leader Asad Umar, during his speech in the National Assembly on Thursday, asked his party’s government to reconsider the increased tax on sugar and cooking oil in the federal budget. Acknowledging that the federal budget ─ set to unroll with the arrival of the new fiscal year on July 1 ─ was a “budget for tough times”, Umar congratulated the team that had prepared it.
“The economy is currently facing multiple problems,” said Umar, who is the chairman of the National Assembly’s Standing Committee on Finance, as he began his speech on the budget.
He said that at the time the PTI government was formed, one “deferred ailment” that the government was dealing with was foreign debt. Umar said that the current account deficit of $2.035 billion a month was reduced by 70 percent in the last three months before his resignation.
The former finance minister noted that the turnover tax has been increased in the budget presented on June 11. “At least the new investments should be excluded from this minimum tax in the first five years,” he recommended, adding that balancing, modernisation, rehabilitation and expansion (BMRE) tax credit should be restored. Umar then said that it was not suitable to increase taxes on sugar for which prices were already rising.
“It [raise in tax] should be taken back and [they] should also investigate why sugar prices are rising so quickly.”
He had the same opinion on increasing the taxes on edible oil and ghee and asked Adviser to the Prime Minister on Finance Dr Hafeez Shaikh to reconsider when winding up the budget. “The total receivables after an increase in the taxes on sugar, oil and ghee are minimal.”
“Similarly, the federal excise duty (FED) on small cars, we had already increased the duty on expensive cars and now the duty has been increased on import of small cars like Alto. As I have said, the middle-income class is also going through a difficult phase. I think this measure should also be reviewed.

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