Pakistan Federal Budget 2019-20 Highlights

Pakistan Federal Budget 2019-20 Highlights

• Sales tax of 17% restored for five export-oriented sectors.
• Minimum monthly salary set at PKR 17,500.
• GST maintained at 17%.
• 3% VAT reduction on mobile phone imports.
• Tax on immovable property decreased from 2% to 1%.
• Non-Filers can now purchase property.
• PKR 200 billion subsidy on electricity for consumers that use less than 300 units of electricity per month.
• 10% decrease in salaries of Cabinet.
• 5% duty imposed on LNG.
• 10% tax will be imposed on milk, cream, and flavored milk items.
• Corporate tax rate fixed at 29% for the next two years.
• 2.5% excise duty imposed on 1000cc cars and above.
• Food items supplied to bakeries and restaurants will be taxed at 4.5%
• Depreciation and brought forward losses excluded for calculation of super tax of banking, insurance, oil, and mineral exploration companies.
• Sales tax on sugar increased from 8% to 17%.
• 3% duty waived on 19 basic medical products.
• FED on Cigarettes increased to PKR 5,200/1000 sticks for the upper slab and to PKR 1,650/1000 sticks for the lower slab.
• Tax on cold drinks increased from 11.25% to 14%.
• 17% federal excise duty imposed on branded cooking oil.