THIS is with reference to the editorial ‘Final IMF deal?’ (Feb 11), which, among other things, said the government would promptly introduce a mini-budget to generate Rs170 billion additional revenues in four months, including additional levies on power and gas sectors to the satisfaction of the International Monetary Fund (IMF), but to the chagrin of the poor who are facing the brunt of price spiral.

Why should these measures be interim and only under IMF pressure? Why is the Ministry of Finance reluctant to reduce the unbridled current expenditure on its own? Is it justified to have a federal cabinet of over 80 ministers, consuming Rs70 billion annually? Is it justified to spend billions on state enterprises?

Why can the government not adopt a set of permanent measures? Why is the government shy of introducing tax on agricultural income? Why not all incomes are to be taxed? Why should there be exemptions for feudal lords, legislators, owners of large estates despite all that had been done in the name of land reforms?

Once, while I was part of the provincial assembly in Sindh in 2014, I had calculated and proposed a levy of 10 per cent tax on 50pc gross income of only livestock and four crops; wheat, rice, cotton and sugarcane. It amounted to about Rs187 billion at the time. If calculated correctly and levied now, it can yield more than Rs250 billion during 2023-24.

It may be clarified that all provincial governments have levied merely land tax, and not income tax on agriculturists, and each collects on an average not more than Rs500 million per annum.

Syed Sardar Ahmad
Karachi

Published in Dawn, February 16th, 2023