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Islamabad, June 12, 2024 — The federal government of Pakistan has unveiled an ambitious budget 2024-25 for fiscal Year, setting the total federal budget outlay at a substantial Rs 18.9 trillion. This comprehensive budget was presented by Finance Minister Muhammad Aurangzeb at the Parliament House today.
Budget 2024-25 Outlay and Tax Targets:
- Total Budget Outlay: Rs. 18.88 trillion.
- FBR Tax Collection Target: Rs. 12.97 trillion, marking a 38% increase year-over-year.
- Non-Tax Revenue: Set at Rs. 4,845 trillion.
Allocations and Expenditures:
- Public Sector Development Program (PSDP): Rs. 1,500 billion.
- Government Employees’ Pension: Rs. 1,014 billion.
- Subsidies: Budgeted at Rs. 1.363 trillion.
- Total Grants: Rs. 1.777 trillion.
- Current Expenditure: Rs. 17.2 trillion.
- Interest Payments: Proposed at Rs. 9.775 trillion.
- Defence Affairs & Services: Rs. 2.122 trillion.
- Grants and Transfers to Provinces & Others: Rs. 1.777 trillion.
- Expenditure for Civil Government Operations: Rs. 839 billion.
- Provision for Emergency and Others: Rs. 313 billion.
Deficit and Financing:
- Budget Deficit: 6.9% of GDP.
- Non-Bank Borrowing (NSSs and Others): Rs. 2.662 trillion.
- Net External Financing: Rs. 666 billion.
- Bank Borrowing (T-Bills, PIBs, Sukuk): Rs. 5.142 trillion.
- Privatization Proceeds: Rs. 30 billion.
- Primary Surplus: 1% of GDP.
Taxation Adjustments:
- Federal Excise Duty on Cement: Increased by Rs. 1,000/ton.
- Capital Gains Tax on Securities: 15% for filers, 45% for non-filers.
- Normal Tax Regime for Exporters: Implemented.
- Petroleum Development Levy (PDL): Maximum limit increased from Rs. 60 per liter to Rs. 80 per liter.
- New Sales Withholding Tax: Imposed on copper, coal, paper, and plastic scrap.
- General Sales Tax (GST) on Textiles and Leather: Increased from 15% to 18% for Tier-1 retailers.
- Withdrawal of Exemptions: Ex-FATA/PATA and imported hybrid cars.
- Sales Tax on Computers and Laptops: Increased from 5% to 10%.
- Sales Tax on Smartphone Imports: 25% ad valorem for smartphones valued above $500.
Minimum Wage and Employment:
- Minimum Wage: Increased from Rs. 32,000 to Rs. 36,000.
- Hiring Freeze: Imposed on new positions for Basic Pay Scale (BPS) 1 to 16.
Property and Investment Taxes:
- Federal Excise Duty on Plots and Properties: 5% on new plots and residential and commercial properties.
- Tax Rate on Mutual Fund Investments: 15% for individuals.
- Minimum Value for Sales Tax on Imports: Adjusted to address under-declaration by importers.
Read Also: Budget 2024-25: Proposal to Increase Tax on Bank Profits for Non-Filers
The government aims to balance economic growth with fiscal responsibility through this budget, focusing on infrastructure development, social welfare, and economic stabilization. The increase in minimum wage and the emphasis on tax collection reflect the administration’s commitment to improving the standard of living for its citizens while maintaining robust economic policies.
For more detailed analysis and updates on the federal budget, stay tuned to our coverage.
[…] Read Also: Budget 2024-25: Key Highlights And Salient Features […]
[…] Read Also: Budget 2024-25: Key Highlights And Salient Features […]