Jhagra criticizes government's decision on GST exemptions

The recent decision by the government to eliminate GST exemptions has stirred a debate among experts and policymakers. Jhagra, a prominent figure, has expressed reservations regarding the feasibility of the government's plan to keep inflation at 12%. He highlighted that a significant portion of revenue targets, over 40%, will heavily rely on tax and non-tax measures, including the removal of tax exemptions.

Jhagra also criticized the previous administration for increasing salaries of government employees despite the country facing a substantial interest payment of around Rs10 billion. This move is expected to put a strain on the exchequer and lead to a rise in provincial expenditures.

The removal of GST exemptions and the reliance on tax measures could have far-reaching implications on the economy. Experts warn that such decisions might lead to an increase in prices of goods and services, affecting the purchasing power of the general public. The burden on the exchequer due to rising expenditures could further strain the government's financial resources.

The government's decision to remove GST exemptions has raised valid concerns about the sustainability of inflation rates and revenue targets. It is crucial for policymakers to carefully assess the potential consequences of these measures on the economy and take necessary steps to mitigate any adverse effects.