BUDGET 2004-05

June 21 - June 27, 2004  
ISSUE # 25  

The budget 2004-05 is the best budget so far presented by the finance minister during last 4 years. The significant fiscal management emphasizing on tax relief to various segments of the economy is sure to produce positive results especially towards growth, investment, job creation and poverty reduction in Pakistan. The bold decision to allow the cottage industry and the small and medium enterprise by giving them a cushion of tax relief would certainly pay back significantly in the long run. The private whom has been allowed to sit in the driving seat would respond with the same spirit for the benefit of the people of this country.



A historic relief package for the farming community was announced by President Pervez Musharraf at the farmers convention held in Islamabad last week providing many incentives to the farmers and protection to the financially weaker segment of the farming community. Announcing that no farmers will be arrested for non-payment of loans, the President said that the relief package to the farming community was designed to spur growth in agriculture sector.

The demonstration by brokers' sponsored groups against the CVT is beyond comprehension. The proposed tax has to be paid by the investors and not by the brokers. This tax has been imposed in lieu of capital gains tax. Capital gains made at the stock exchanges have remained tax exempted since 1975.