While Pakistan suffers from extreme economic disability with IMF down its throat, Finance Minister Miftah Ismail on Friday proposed a Rs9.5 trillion inflationary federal budget. The new budget for fiscal year 2022-23 provides solace to the salaried class whose tax burden has been significantly lessened in addition to 15% increase in salaries of the inflation-stricken government employees.
While unveiling the first budget of the coalition government in an unusually calm atmosphere, Miftah has attempted to tax the holy cows –the realty sector, the wealthiest people while also forcing the commercial banks to cough more painlessly earned money.
• Govt employees’ salaries up 15pc, no tax on those earning up to Rs100,000/month
• Subsidies on sugar, wheat flour proposed
• Taxes on cars over 1,600cc to be increased
• Pensioner tax reduced to 5pc from 10pc
• Advance withholding tax to be collected from those sending remittances abroad
• Tax on banking sector increases to 42pc
• Families with income below Rs40,000 to be given Rs2,000
• Households using fewer than 200 units of electricity to be offered loans on easy instalments to buy solar panels
• Tax-to-GDP ratio set at 9.2pc
• Rs699bn on targeted subsidies in new fiscal
• Defence expenditure at Rs1.52tr
• FBR target set at Rs7tr
• 2pc additional tax for those with Rs30m annual income
• Average inflation forecast at 11.5pc
Source: Express Tribune
Inflics provides it readers the information that they need in concise and short articles, making information and news more accessible to everyone.