Shehbaz Sharif's Unilateral Tax Decisions Spark Controversy

The recent implementation of new tax measures totaling Rs1.5 trillion by the government has sparked controversy due to the lack of consultation with the federal cabinet. Prime Minister Shehbaz Sharif approved the Finance Bill without seeking input from cabinet ministers, raising concerns about transparency and decision-making processes.

During a special cabinet meeting, the focus was primarily on the $5000 fee received by top bureaucrats for attending board meetings of government-owned enterprises. Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar proposed changes to ensure a portion of these fees benefit the exchequer, diverting attention from crucial tax matters affecting the general public.

The absence of thorough discussions on key tax issues, such as the impact on the salaried class and taxes on essential items like packaged milk and infant milk, has raised questions about the government's priorities and the potential implications for citizens.

Despite the lack of cabinet involvement, the National Assembly will now review and assess these significant tax measures, including changes to the sales tax structure aimed at generating additional revenue of Rs484 billion in the 2024-25 budget. However, concerns about potential inflation resulting from these tax adjustments remain prevalent.

The introduction of new taxes, including an 18% tax on milk products and stationery items, as well as increased taxes on imported goods like vegetables and fruits, diagnostic kits, and medical treatments, is expected to impact consumers across various sectors. The rise in excise duties on cement and sugar further adds to the financial burden on the public.

The unilateral approval of these tax measures without comprehensive cabinet discussions highlights the need for greater transparency and inclusive decision-making processes in shaping fiscal policies that directly affect the population. As citizens navigate the implications of these tax changes, it becomes imperative for the government to prioritize public welfare and engage in constructive dialogue to address concerns and ensure equitable taxation practices.