Choked economy cannot generate expected revenue
ISLAMABAD: The government will not be able to increase revenue substantially amid current policies of suppressing demand, a business leader said Thursday.
The current interest rates and other policies have choked demand which has pushed the industrial sector to cut production which has also reduced their tax contribution, said Shahid Rasheed Butt former President ICCI.
He said that tax can only be increased when economic activities are promoted which is not the case.
The reduced demand has also brought down imports which have scaled-down the customs duty by 5.7 percent in the first two months of the current fiscal, he informed.
He said that target for the first two months was intentionally kept low but it was missed by Rs64 billion while all the efforts to squeeze existing taxpayers will not boost collection over Rs4400 billion.
