It may be a budget that is expected to attract the masses and when we put that in perspective we simply mean common man, the largest tax base. So to put it in numbers, we have seen a growth of 40% in total taxpayers in the last five years.
That is huge when we talk about Tax to GDP ratio and which actually keeps our budget deficit lower. So that ratio has jumped by 56% in the last few years. And when we talk about individual taxpayers, it has been up almost 41%. So these numbers are big for us and definitely give huge liquidity that will drive the overall consumption based economy.
So the much talk about tax rates - slab change if comes into effect can flood the market with liquidity and certainly consumption based stocks. Automobiles, and to an extent, the Real estate sector will see direct effect of income tax relief.
Mustafa Nadeem is CEO at Epic Research