THE pre-budget season is a period of vague official promises of tax relief. It is also a period in which the tax collecting official look for large new sources of revenue, failing which they increase the existing taxes. It is also a season marked for trade and industry clamouring for large tax concessions and the common man sceptically hopes for some relief from his oppressive cost of living.
The stark fact is that while agriculture contributes to 25 percent of the gross domestic product (GDP) it pays no federal taxes. Wholesale trade with its many bigwigs contributes to 16 percent of GDP but pays two percent of taxes only, while transport contributes to 12 percent of GDP but pays only one percent of GDP. Last year officials told us that about Rs 100 billion were transferred to agricultural areas as support price for agricultural products.