Totally disappointed about Pakistan’s Budget 2008-2009

I’m upset and disappointed with this years budget. I’m putting this post behind a cut as it is full of rants.

Nothing, and I mean nothing has decreased in this budget for the telecommunication sector. Instead, we have been burdened with even more taxes.

The overall impact of this years budget has had a very negative impact on the telecom sector. The government has put an import duty of Rs.500 per set on mobile phones, which is simply crazy as a person buying a Rs.2,000 phone will be paying 25% extra as the set will now be for Rs.2,500. And a person buying a Rs.20,000 phone will be paying only 2.5% more as the set will be for only Rs.20,500.

This is so messed up. For a person paying Rs.20,000 for a phone, an additional Rs.500 means nothing. But for a person who buys a Rs.2,000 phone, this Rs.500 will seem huge.

A budget for the poor? Yeah right.

Some people are saying that the government is trying to encourage local mobile manufacturing. Local what? Now who on earth wants to buy a substandard mobile phone? I’m sorry, I’m not buying this argument.

Another saying is that the government is trying to limit expenditure. This comment really made me laugh. In today’s Pakistan, when people can barely make ends meet, the government is trying to limit expenditure by imposing a Rs.500 tax per phone? Yes. Makes total sense (NOT!)

Why don’t the government officials simply cut down their salaries by Rs.3,000 each instead? Or maybe instead of using tax money paid by the poor, they can start paying out of their own pockets for their Bullet-Proof Mercedes Benzs & their free family trips to foreign countries. Now THIS makes total sense. I really don’t want to pay Rs.500 per phone to cover their personal expenses.

Anyway. Apart from this phone tax, the government has imposed a 10% withholding tax on phone bills exceeding Rs.1,000. Seriously!?! Nowadays we hardly have money to travel, so phone calls are the only way to keep in touch with relatives living in other cities or countries, and to limit the bill to Rs.1,000 is simply unbelievable!

And then, for the cherry on top, they have increased the FED from 15% to 21%. Bravo! What a brilliant move (NOT!). People who could hardly afford it before, now have to pay through their teeth for a couple of phone calls. This move will certainly make people think twice before making phone calls or using internet services, and even if people don’t think before using, they will certainly feel the burden of this increase on their pockets.

What a way to promote the industry!

Alright. I’m done ranting.