Pakistan’s Federal Minister for Finance Muftah Ismail presented a budget of Rs 9,502 billion for the fiscal year 2023-2022 with a deficit of over Rs 4,000 billion.
Federal Minister for Finance Muftah Ismail, while addressing the National Assembly on Friday, outlined the salient features of the federal budget.
The salaries of government employees are being increased by 15%. The minimum income tax has been raised from Rs 6 lakh to Rs 12 lakh.
Individuals and companies with an annual income of Rs. 30 crore or more are required to pay 2% tax.
It is proposed to increase advance tax on luxury vehicles or vehicles with more than 1600 cc power.
If non-filers buy a 1600 cc car, the tax rate will be increased from 100% to 200%.
The minimum tax threshold for small businesses, especially business women, has been raised from Rs 4 lakh to Rs 6 lakh.
According to the Finance Minister, a system of fixed income and sales tax ranging from Rs 3,000 to Rs 10,000 is being implemented after which the FBRN will not require any further tax.
The HEC’s budget for the promotion of higher education is being increased by 67% over the previous year.
Students of Balochistan will be given Rs. 5,000 scholarships.
The tax levied on investment certificates in savings certificates, pension benefits and welfare accounts of martyrs’ families is being reduced from 10% to 5%.
Rs 10 billion is being set aside in the budget to tackle climate change.
The scope of Benazir Scholarship Program for deserving students will be extended to 10 million students.
Tax on import and delivery of solar panels is being reduced to zero.
The minimum tax threshold for small businesses, especially business women, has been raised from Rs 4 lakh to Rs 6 lakh.
It has been decided to levy 5% tax on the purchase of other property worth Rs 2.5 crore.
Rs 24 billion has been earmarked in the budget for vaccine, disease control and capacity building of health related institutions.
Taxes on agricultural machinery, tractors, wheat, rice, seeds and other items used in this sector are being reduced to zero.
It has been decided to exempt agricultural machinery from customs duty. All kinds of agricultural implements including agricultural machinery, related items, greenhouse farming, processing, plant protection equipment, drip irrigation, water supply are being exempted from tax.
Ingredients used in the manufacture of medicines are being given complete exemption from customs duty, including the basic ingredients of various types used in the manufacture of medicines.