ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government has presented the budget for the third financial year in the National Assembly.
Federal Finance Minister Shaukat Tareen presented a budget of Rs 84.87 billion for the next financial year 2021-2022 in the National Assembly session on Friday.
The government has not imposed any new tax on the salaried class in the budget for the next financial year, while announcing a 10 per cent increase in salaries and pensions of government employees and raising the minimum wage to Rs 20,000.
In the budget for the year 2021-2022, the government has given incentives to the citizens, the details of which are given below.
بغیر Interest free loan of up to Rs. 500,000 to every citizen household
* An interest loan of Rs. 1.5 lakh for each crop to the farming family
* Loan of Rs. 2 million for low cost housing for poor families
* Low income earners will be given a subsidy of Rs 300,000 to build their own house.
* FED on 850 cc locally manufactured vehicles has been abolished, sales tax rate has been reduced from 12.5 per cent to 12.5 per cent while value added tax (WAT) has also been abolished.
read more: The government has increased the pensions of federal pensioners by 10%
* Tax exemption on import of standard paper used in printing of Holy Quran
ٹیکس Tax Exemption on Import of Not Down (CKD) Kits for Locally Made Vehicles
* Sales tax on electric vehicles manufactured in Pakistan has been reduced from 17% to 1% while Federal Excise Duty (FED) on four wheelers has also been abolished.
ختم Abolition of sales tax on disposable syringes, raw materials and oxygen cylinders, tax exemption on import of plant, machinery, equipment and raw materials in information technology zones, federal excise duty on telecommunications (FED) 17 It was reduced from 4.6 percent
ایف FED rebate on merchant discount rate at point of sale (POS) of banks
ود Withholding tax on discovery of international transactions and minerals through banking transactions, cash withdrawals, Pakistan Stock Exchange, margin financing, air travel services, debit and credit cards abolished
Also read: Duty on mobile phone calls for more than three minutes
* 12.5% withholding tax on mobile services has been reduced to 10%
ٹیکس Withholding tax on oil field services, warehouse services, collateral management services, security services, and tour and travel services reduced from 8% to 3%
* Capital gains tax on stock market has been reduced from 15 to 12.5 percent, non-governmental humanitarian organizations including Abdul Sattar Edhi Foundation, Indus Hospital and Network, Patient Aid Foundation etc. have been removed from the scope of tax.
* Tax exemption on property inherited by Pakistanis living abroad, general tax has been reduced from 1.5 to 1.25%.
* Tax rates for retailers of certain sectors FMCG and refineries have been reduced, holding tax on import of books, magazines, agricultural implements and CBUs of vehicles up to 850 cc has been abolished.
* Special Economic Zones Enterprises were exempted from the minimum tax, Special Technology Zones Authority, Zone Developers, and Zone Enterprises were given 10 years tax exemption, tax exemption on import of capital goods.
Also read: Important explanation of tax on call and internet
* Tax exemption on income earned from private funds on investment in zone enterprises, holding tax exemption on electronic warehouse receipts on Pakistan Mercantile Exchange while reduction of customs duty on electric vehicles.
* Customs duty on 35% surplus raw materials used in medical equipment and goods was abolished.
Salaries, pensions and monthly wages of government employees
10 10% increase in salaries of government employees from July 1, 10% increase in pensions of government employees, orderly allowance increased from 14,000 to 17,000 per month, integrated allowance for Grade 1 to 5 employees from 450 to 950. 100 while the minimum wage has been increased to Rs. 20,000 per month.
Highlights of the budget speech
The volume of the federal budget will be Rs 8,487 billion
Twenty billion dollars in deficit brought 800 million surplus
Due to Krona, it took time to stabilize the economy
In the past, the 5.5% growth rate was beaten
We have to make all the payments of the past otherwise the country would have gone bankrupt
Pakistan faced two additional waves of the Karuna epidemic but escaped dire consequences
Despite Krona, per capita income increased by 15%
Tax collections increased by 18%
75% more refunds were paid than last year
The federal budget has allocated Rs 260 billion for the Ehsas program
Remittances rose 25 percent to 29 29 billion
The volume of the annual development program will be Rs. 900 billion
Rs. 2135 billion allocated for Public Sector Development Program
PSD increased by 33% over the previous year
One billion rupees allocated for locust heart emergency food security in the federal budget
Food, water supply and energy security will be top priorities in the budget
Loans ranging from Rs 4 to 5 lakh will be given to four to six million households
Cheap loans of up to Rs 2 million will be given to low income earners
Each household will be provided with a health card
This time we will give a complete package to the poor
Dasu Hydro Project, Rs 57 billion allocated for the first phase
Rs 23 billion is being set aside for Diamer-Bhasha Dam
Rs 6 billion allocated for Mohmand Dam
Proposal of Rs. 14 billion for Neelum-Jhelum hydro project
Rs 260 billion proposal for Ehsas program
C-Pack completes 17 major projects worth 13 13 billion
Work continues on 21 more C-Pack projects worth 21 21 billion
Development package of Rs. 601 billion for South Balochistan
ڈ 1.1 billion will be spent on the vaccine
16 billion aid is proposed for PIA and Rs
739 billion approved for Karachi Transformation Plan
The federal government will provide Rs 98 billion for the Karachi Transformation Plan
Rs. 12 billion allocated for development of agricultural sector
Rs 91 billion allocated for protection of water resources
The Karachi rehabilitation project will include Rs 125 billion from the Supreme Court fund
Rs 19.5 billion allocated for 14 districts of Sindh this year
Rs 9.3 billion allocated for construction of ML-1
Rs 54 billion allocated for development of integrated districts of KP
Rs 12 billion has been earmarked for Hyderabad-Sukkur transmission line
Rs 22 billion has been earmarked for coal-fired power generation in Jamshoro
Rs 8.5 billion allocated for 2160 MW power generation from Dasu
Rs 5.5 billion allocated for power generation from Ski Kanari, Kohala, Mahal hydro projects
Rs 16.5 billion allocated for Karachi One, K2, Tarbela Hydropower Project
Rs 100 billion allocated for development of backward areas
Health 30 billion, higher education 44, Rs 16 billion allocated for sustainable development
The total revenue is estimated at Rs. 7909 billion
The target for tax revenue will be Rs. 5829 billion
The share of provinces in federal tax will be Rs 3411 billion
Next year, the provinces will get more than Rs 707 billion from the NFC
Rs 40 billion allocated for Gilgit-Baltistan socio-economic planning
10% increase in salaries, pensions of government employees
Rs 54 billion has been earmarked for the development of KP integrated districts
The federal government has decided not to impose a new tax on the salaried class in next year’s budget
Rs 14 billion allocated in the budget for the Billion Tree project
Rs 118 billion allocated for health, education, economic development, tackling climate change
Sialkot Kharian, Hyderabad Sukkur Motorway was started with a record amount of Rs. 233 billion
It is proposed to reduce the sales tax rate on vehicles up to 850 cc from 17 to 12.5%
Federal excise duty on fruit juice abolished
Proposed tax exemption on plant machinery, equipment, raw materials for IT zone
Suggestions for discounts in agricultural commodity warehousing practices
Proposal to include e-commerce in sales tax net
Proposal to impose federal excise duty on more than three minutes of calls, internet usage, SMS
Rs 10 billion has been set aside for a successful Pakistan program, Shaukat Tareen said
Proposal to provide Rs. 66 billion to HEC
An anti-rape fund is being set up on the directive of the Prime Minister. Rs 100 million has been set aside for the anti-rape fund and it will be increased later.
Mobile services production holding tax proposed to be reduced from 12.5% to 10%
The amount for Azad Kashmir has been increased from Rs 54 billion to Rs 60 billion
Gilgit-Baltistan’s budget proposed to be increased from Rs 32 billion to Rs 47 billion
Sindh will be given a special grant of Rs 12 billion
Apart from NFC, Balochistan will also be given another Rs 10 billion
Rs 5 billion proposed for new census
Rs 5 billion allocated for local body elections
The same amount of tax will be levied on a child’s annual school fee of Rs 2 lakh
From July 1, federal government employees will receive a 10% ad hoc relief allowance
The telecom sector has been given industry status
Customs duty on plastic warehouses
Government announces 10-year tax exemption for Special Technology Zone Authority
The capital gains tax rate has been reduced from 15 per cent to 12.5 per cent