The controversial budget given by the last government is under discussion by the newly appointed Pakistan Tehreek-i-Insaaf (PTI) led coalition government. This concern of the new government revising the budget for the fiscal year prepared by the leaving government was highlighted by many critics of the move. Many also pointed out that a government near the end of the tenure should not present the budget because the new government should be able to set that agenda. This is precisely what the budget revision and discussion are at this point in time.

Instead of the budget trying to overcome the economic deficit, the last budget presented was labelled as one trying to appease the masses right before the elections. This is because massive taxation cuts were offered, especially when it came to the high earning class, as compared to the low-income class. The newly elected government wants to revise this strategy and use taxation as a means to overcome the deficit. They want to offer the low-income class maximum relaxation, whereas, increase taxation for those earning more.

Another concern is the number of cases pending with the Federal Board of Revenue (FBR). Over a million audits are pending and for that, the FBR is not equipped to speed up the process. If the government manages to introduce a one-time amnesty scheme, which is under discussion these days, the situation of the tax net at this point might just improve. The amnesty scheme will ensure 25 percent more tax along with the one already paid in order to clear that audit.

All of these measures show the amount of dedication the new government has to help revive the economy of the country. However, these measures need to be first approved by the Cabinet in order for them to be implemented. There are a few concerns which the government must keep in mind before introducing such heavy and sudden taxation. There is already a lot of pressure on the average taxpayer in the economy. We have already witnessed the reaction after the sudden price hikes. That along with taxation is bound to affect the masses and that will also ultimately affect the business cycle of the country. Such measures need to thus be introduced with caution, otherwise, there will be severe backlash from the population.