Showing posts with label Federal Budget 208-19. Show all posts
Showing posts with label Federal Budget 208-19. Show all posts

Thursday, 24 January 2019

Mini Budget Pakistan Finance Supplementary Second Amendment Bill 2019

Mini Budget Pakistan Finance Supplementary Second Amendment Bill 2019

Finance Minister Asad Umer on Wednesday said that this was not a budget being presented but rather a set of economic reforms.
Presenting the Finance Supplementary (Second Amendment) Bill, 2019, he said that the government faced severe economic challenges in the beginning, adding that this is not a budget but a reforms package for the uplift of various sectors.
The finance minister alleged that the previous government had increased the budget deficit in a bid to"buy the elections."“We have to support the weak segments of the society,” he added.
Umar went on to say that the country’s deficit ballooned to Rs900 billion.

Country’s agricultural loans have increased 22 percent during the last six months.

The country’s exports have increased.

The Small and Medium Enterprised(SMEs) are the backbone of the economy as employment opportunities cannot be produced without SME sector.

The PTI in its manifesto prioritised providing employment to the youth. This cannot be done if SMEs do not have the necessary funding.

Tax is being reduced on small business institutions.

The minister said that Pakistan’s economy will see most prosperity in its history during the PTI government’s tenure.

Government to introduce Rs5 bn Qarz-e-Hasna  scheme

Non-filers can buy cars upto 1300cc.
Taxes on marriage halls have been reduced.
To provide low-income housing, loans will be decreased to 20 per cent. Rs5 billion revolving fund will be introduced.

Withholding tax for filers on banking transactions will be eliminated to encourage the culture of paying taxes.

Non-fillers can purchase small and mid-size cars up to 1300CC, but the tax would be increased.

Special economic zones have been formed keeping in mind the interest of CPEC.

All machinery in special economic zones will be exempted from all taxes.

Pakistan’s imports have declined.

Pakistan’s fiscal losses have declined

Import duty on raw material is being reduced.

Duty on import of newsprint eliminated.

No tax on bids for sports franchises until profitability.

Super tax will be eliminated for non-banking companies from July 1. 

Rs1470 sales tax imposed on imported mobile phones worth $30 to $100

Rs1870 sales tax imposed on imported mobile phones worth $100 to $200

Rs1930 sales tax imposed on imported mobile phones worth $200 to $350

Rs6000 sales tax imposed on imported mobile phones worth $350 to $500

Rs10300 sales tax imposed on imported mobile phones worth more than $500

New industries will be exempted from income taxes for five years

Friday, 27 April 2018

Pakistan Federal Budget 2018-19 Live Updates

  • Pakistan Federal Budget 2018-19 Live Updates 
  • Under the amnesty scheme, foreign assets will be charged a tax rate of 3%, while liquid assets – like foreign currency – will be taxed at 5%.
  • By 2023, the rate of corporate tax will be 25% through a percentage-point decrease each year.
  • Currently, the rate is 30%. In 2013, the rate was 35%.
  • The rate of super tax will decrease by a percentage point each fiscal year, says Ismail.
  • This way, the super tax on banks will end in four years, while non-banking companies will see its rate become zero in three years.
  • Non-filers of income tax returns will not be allowed to purchase property worth more than Rs4 million, says Ismail.
  • However, he adds that filers will pay only 1% tax on purchase of property.
  • The move is a huge negative for the real estate sector where a majority of transactions are ‘off-the-books’, greatly understated, and consist mostly of non-filers of income tax returns.
  • Ismail says the income tax exemption threshold would be increased to Rs1.2 million.
  • This means a salaried individual who earns Rs100,000 a month (Rs1.2 million a year) will be exempted from paying any income tax.
  • Additionally, companies would only be audited once every three years.
  • The proposal comes as the FBR struggles to conduct audits, and is faced with a huge backlog.
  • Brokerage income tax will be an adjustable 0.2%, a change from the previous regime of a fixed rate.
  • The demand will be a pleasant surprise for brokerage houses that had demanded an adjustable rate of income tax.
  • Salaries as well as pensions of military and civil servants will be increased by 10%.
  • Duty on the import of electric cars has been reduced to 25% from 50%. Regulatory duty has been removed, says Ismail.
  • The Benazir Income Support Programme will be allocated Rs125 billion, says Ismail.
  • Tax on bonus shares has been removed, says Ismail.
  • The move would be a huge boost for stock market investors. The Pakistan Stock Exchange (PSX), as part of its budget proposals, had urged the government to remove the tax.
  • The defence budget will stand at Rs1,100 billion, says Ismail. Another Rs100 billion has been allocated as the Armed Forces Development Programme.
  • Witnessing the recent boom in Pakistan’s film industry, Ismail says the budget will propose a 50% reduction in income tax rates for the next five years.
  • An amount of Rs25 billion has been allocated for Karachi, Sindh’s provincial capital, says Ismail.
  • “A desalination plant would also be set up in the industrial hub. It will provide the city 50 million gallons of water per day.”
  • The federal government will provide buses for school-going girls in a bid to promote education in the country’s remote areas, says the finance minister
  • Budget deficit’s target has been set at 4.9% for next year. The current fiscal gap is 5.5% of GDP, says Ismail.
  • With huge exemptions on offer and low tax revenues, the target seems to be ambitious, say experts.
  • The government is targeting a tax-to-GDP ratio of 13.8%, says Ismail.
  • The Federal Board of Revenue (FBR) will target a revenue of Rs4,435 billion in the next fiscal year.
  • Pakistan will target 6.2% GDP growth in 2018-19, says Ismail.
  • The country’s economy grew at 5.8% in 2017-18, according to Pakistan Economic Survey 2017-18.
  • Remittances, for long Pakistan’s saving grace, are expected to hit the $20-billion mark, according to the finance minister.
  • Foreign exchange reserves of the State Bank of Pakistan (SBP) will be at a higher level than they are right now, says Ismail.
  • The current level is below $11 billion, which was at one point over $17 billion.
  • The finance minister says agriculture disbursement stood at Rs336 billion in 2012-13, which would increase to Rs800 billion in June this year.
  • Taking credit for low inflation figures, Ismail says food inflation in 2017-18 has been 2%.
  • However, the low inflation figure has come mainly on the back of low oil prices in the global market.
  • Ismail says the inflation target for 2018-19 has been set at below 6%.
  • Ismail says the country was on the verge of bankruptcy when the current government took over in 2013.
  • “Pakistan has now achieved a 13-year high in GDP growth and is currently the world’s 24th largest economy,” says the newly-appointed finance minister.
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