ISLAMABAD: The Muttahida Qaumi Movement (MQM) on Saturday rejected the proposed tax on the Compressed Natural Gas (CNG) as it advocated that only 30 percent of the total taxes to be imposed should be indirect taxes.
Addressing a press conference, MQM deputy parliamentary leader Haider Abbas Rizvi said that ratio of direct and indirect taxes should be 70-30. “The MQM rejects the proposal of the government to impose new tax on the CNG sector. The government should improve direct and indirect tax collection. The direct tax should be 70 and indirect tax 30 percent of gross domestic product (GDP).” Rizvi said.
He also demanded the government reduce from 12 to 10 percent the basic interest rate of banks. He expressed concern that the government may increase interest rate from 12 to 12.5 percent in the coming days. He said that inflation would increase in the country with imposition of new taxes on the CNG. He said that the current economic situation was the most crucial issue in the country and added that it could be resolved only through revolutionary tax system.
“Inflation is increasing day by day in the country due to government huge borrowing from the banks,” the MQM leader said. He said his party had advised the government to save Rs 1200 billion by improving the governance. He also advised the government that discretionary funds of the prime minister should be reduced in order to decrease circular debt. staff report