The National Assembly formally cleared the government budget 2024-25 at today’s session in Islamabad.
With the approval of the budget, now wave of inflation will sweep across the country. This will affect the already financially struggling population of Pakistan.
Finance Minister Muhammad Aurangzeb introduced modifications to the Finance Bill 2024, which Speaker Ayaz Sadiq accepted on live television.
Many of the daily life commodities will become expensive with the increase in GST tax from 17 to 18 % in this year’s budget including utility store items
Here are some significant takeaways from the proposed changes in measures outlined in the amendment paper and announced by the Finance Minister.
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The federal government has increased the excise duty on business and club class airline tickets up to Rs. 350,000. The government has agreed to raise the PDL by Rs. 10 per liter on MS petrol and High-Speed Diesel (HSD).
The federal government has put a 10% surcharge on the tax burden of high-income earners. 15% of revenues will be considered deemed income, subject to a 29% income tax.
The lower rate of 8.5 percent and 12.75 percent for hybrid cars with engine capacities of up to 1800cc and between 1801-2500cc will be maintained. However, proposed revisions have reduced the benefit until June 30, 2026.
In a surprise move, the Finance Minister recommended increasing the FED on cement from Rs. 3 per kg to Rs. 4 per kg, despite press reports indicating that the increase may be reversed.
FATA PATA’s sales tax incentives have been extended for one year till June 30, 2025. The government has maintained its previous position of taxing export revenue at a corporation tax rate of 29 percent plus relevant super tax. Previously, exporters paid 1% of export sales, which was complete and final.
Capital Value Tax (CVT) on property on farmhouses and two-kanal dwellings in the federal capital.
Setting up a tax fraud investigation.
Functions of Tax Fraud Investigation Wing Inland Revenue’s mission is to discover, analyze, investigate, battle, and prevent tax evasion and fraud.
Members of Parliament’s travel stipend has been increased by 150 percent, from Rs. 10 to Rs. 25 per kilometer. Furthermore, unused yearly flight tickets for members of parliament will now be carried forward to the next year rather than being canceled.