Pkrevenue.com

Category: Budget

This is parent category of budgets presented by Pakistan government. Here you will find year-wise federal and provincial budgets.

  • FBR invites sales tax proposals for budget 2021/2022

    FBR invites sales tax proposals for budget 2021/2022

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday invited sales tax proposals for the federal budget 2021/2022 and directed the stakeholders to submit their suggestions by March 10, 2021.

    In a letter sent to chambers, association and other stakeholders, the FBR advised that the proposals should focus on broadening of the tax base and increase in revenue.

    The businessmen have been advised to give proposals to amend in following laws/rules:

    Sales Tax Act, 1990

    Federal Excise Act, 2005

    Sales Tax Rules, 2006

    Federal Excise Rules, 20052

    ICT (Sales Tax on Services) Ordinance, 2001.

    The FBR said that amendments should be suggested with a view to achieve simplification, remove difficulties and anomalies, and to abolish any outdated/obsolete provisions.

    “FBR would welcome proposals for eliminating tax fraud, fake and flying invoices, plugging loopholes if any, facilitating genuine taxpayers and making the procedures transparent,” it added.

    The proposals should be made keeping in view the consequences for the other related trade groups which might be adversely affected by the proposed measure.

  • SRB starts preparation for provincial budget 2021/2022; invites proposals

    SRB starts preparation for provincial budget 2021/2022; invites proposals

    KARACHI: Sindh Revenue Board (SRB) has started preparation for the provincial budget 2021/2022 and in this regard asked all the association and chambers and other stakeholders to submit their tax proposals by February 15, 2021.

    In a communication sent to all chambers, associations, tax bars, Institute of Chartered Accountants of Pakistan (ICAP), Institute of Cost and Management Accountants of Pakistan (ICMAP) and other stakeholders to submit their proposals in relation to the Sindh Sales Tax on Services Act, 2011 and the rules and notifications issued thereunder.

    The SRB said that it was in the process of formulating budgetary measures for Sindh Budget 2021/2022 in relation to taxation and procedural provisions of Sindh Sales Tax on Services Act, 2011, the Sindh Sales Tax on Services Rules, 2011, the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, the Sindh Sales Tax Special Procedure (Transportation or carriage of Petroleum Oil through Oil Tankers) Rules, 2018, and the Sindh Sales Tax Special Procedure (Services provided or rendered by cab aggregator and the services provided or rendered by owners or drivers of the motor vehicles using the cab aggregators services) Rules, 2019 and the various notifications issued under the said Act, 2011.

    The SRB further said it has been policy of the provincial revenue board to consult all chambers, associations, groups, stakeholders and taxpayers before finalizing the budget proposals.

    “With this end in view, the SRB requests all persons (including the chambers of commerce and industry, business councils, trade associations, tax bars, Institute of Chartered Accountants, Institute of Cost and Management Accountants, taxpayers, etc.) to send their written proposals in the prescribed format so as to reach latest by Monday, February 15, 2021.

    The SRB provided a format for proposals which included: name of the Act/Rules/Notification proposed to be amended; Section No., Schedule No., Tariff Heading No., Rule No., Para No., involved; existing provisions/rates of tax; proposed provisions/rates of tax; reasons and rationale for the proposal; revenue effect etc.

  • FBR invites customs proposals for budget 2021/2022

    FBR invites customs proposals for budget 2021/2022

    The Federal Board of Revenue (FBR) has opened the floor for customs duty proposals as part of the preparations for the federal budget for the fiscal year 2021/2022.

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  • FBR invites income tax proposals for budget 2021/2022

    FBR invites income tax proposals for budget 2021/2022

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday invited income tax proposals for budget 2021/2022 and asked stakeholders to submit the same by February 15, 2021.

    The FBR asked the tax offices, including Large Taxpayers Offices (LTOs), Medium Tax Offices (MTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs), and trade and industries that the proposals should focus on broadening the tax base for a wide participation in revenue generation efforts.

    The FBR advised that suggestions should in the following policy areas:

    Broadening of tax base for a wider participation in revenue generation efforts;

    Taxation of real income on progressive basis;

    Phasing out of tax concessions and exemptions;

    Removal of tax distortions and anomalies;

    Facilitation of taxpayers and ease of doing business;

    Promoting equity in taxation by introducing measures where incidence of tax is higher on affluent classes.

    The stakeholders have been asked to provide proposals in a prescribed formation that should include relevant sections/clauses or rules where amendment is sought. The proposals related to any section of Income Tax Ordinance, 2001 or any rule to Income Tax Rules, 2002 should be presented along with rationale and revenue impact.

  • Federal Budget 2021/2022 to be announced during first week of June

    Federal Budget 2021/2022 to be announced during first week of June

    ISLAMABAD: The government on Saturday said it will present the federal budget 2021/2022 before the Parliament during the first week of June 2021.

    According to the budget call circular issued by the finance ministry, the presentation of budget to the cabinet and the parliament would be in the first week of June 2021.

    The finance division shall complete all budget documents, schedules and summaries for the cabinet by end of May 2021.

    The ministry issued timelines for budget preparation process under which by March 15, 2021 PAOs would provide revised estimates for current fiscal year and budget estimates for 2021/2022 for federal government receipts. On the same date PAOs will also be required to forward budget proposals relating to tax and non-tax revenues for inclusion in Finance Bill 2021/2022.

    The PAOs will also comply March 15, 2021 for submission of current and development expenditure budget estimates.

    The finance division shall finalize development of budget strategy paper by second week of March 2021. The budget strategy paper shall be submitted to the cabinet by first week of April 2021.

    APCC and NEC may hold meeting in April 2021.

    Submission of NO/NIS forms for current budget shall be by April 26 to May 14, 2021.

    Submission of BO/NIS Forms by ministries / divisions for development budget during May 10 –21, 2021.

  • Finance ministry issues strategy for release of funds for development budget

    Finance ministry issues strategy for release of funds for development budget

    ISLAMABAD: The finance ministry on Wednesday issued strategy for release of funds for development budget during fiscal year 2020/2021.

    The undersigned is directed to refer to the subject mentioned above and to state that keeping in view the Public Finance Management Act (PFM) Act, 2019, the following strategy for release of funds relating to Development Budget for Financial Year 2020-21 shall be followed with immediate effect and until further orders:-

    a) Funds for Development Budget shall be released by Finance Division at the level of 20 percent for the 1st Quarter, 30 percent each for 2nd and 3rd Quarter and 20 percent for 4th Quarter.

    b) Ministry of Planning, Development and Special Initiative s shall devise project-wise/Division-wise strategy for release of funds for Public Sector Development Program (PSDP) within the appropriations approved by the National Assembly and included in the Schedule of Authorized Expenditure in terms of Article 83 of the Constitution.

    c) All payments shall be made through the pre-audit system of the Accountant General Pakistan Revenue (AGPR)/ Military Accountant General (MAG)/ Accounting Offices/ Sub-Offices, or through Assignment Account procedure issued by the Finance Division. No direct payment through the State Bank of Pakistan shall be made, except with the prior approval of the Finance Secretary.

    d) No authority shall incur or commit any expenditure from the “Federal Consolidated Fund” until the same has been sanctioned by the National Assembly and the expenditure has been provided for the financial year through (a) schedule of authorized of expenditure in terms of Article 83 of the Constitution, or (b) supplementary grant or technical supplementary grant as per Article 84 of the Constitution has been approved by the Federal Government, or (c) re-appropriation as per Sections 2(u) and 11 of the Public Finance Management Act, 2019.

    e) There shall be no requirement of ways and means clearance from Budget Wing and endorsement of sanction letters by Expenditure Wing, Finance Division for the fund releases for PSDP approved projects.

    f) All the sanctions for expenditure (in all forms) shall be issued and entered into SAP system by the Principle Accounting Officers (PAOs) before making payment by the Accounting Offices.

    g) AGPR and other Accounting Offices shall not enter the sanction letters issued by the PAO into the SAP system and shall process the payments on verification of budget, fund release and sanction letter.

    h) The provisions of Public Finance Management Act, 2019 shall be strictly adhered to by all the PAOs and the Accounting Offices.

    i) The instructions with regard to all forms of supplementary grants shall be issued by the Budget Wing, Finance Division, separately.

    j) The Development Wing of Finance Division shall coordinate and oversee the matters relating to release of funds for development of budget and other ancillary matters.

  • Cash withdrawal should be exempted from withholding tax; Senate recommends key changes in Finance Bill 2020

    Cash withdrawal should be exempted from withholding tax; Senate recommends key changes in Finance Bill 2020

    ISLAMABAD: The Senate of Pakistan has recommended the government to abolish withholding tax on cash transactions from banks. In its key tax recommendations for finalizing budget 2020/2021, the Senate recommended that the government should abolish all kinds of withholding tax chargeable on cash transactions from banks.

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  • Senate advises salary increase by 10 percent

    Senate advises salary increase by 10 percent

    ISLAMABAD: The Senate of Pakistan has recommended increase in salary of government employees by at least 10 percent for fiscal year starting July 01, 2020.

    As per the general consensus recommendations of the upper house after the debate on budget 2020/2021, it is recommended that salary of government employees should be enhanced at least 10 percent.

    The upper house further recommended that the federal government should double the budget for education and health sectors.

    It is recommended that all important debt agreements must be placed before the parliament for scrutiny immediately.

    The budget allocation for ministry of national health services, regulations and coordination must be enhanced to a minimum five percent as per WHO recommendations.

    The 11 percent cut imposed on the share of the provinces in violation of National Finance Commission (NFC) Award must be revised immediately.

    The Senate of Pakistan recommended to the National Assembly that the allocation for Ministry of Education must be increased by 20 percent.

    It is recommended that salaries of the medical and para-medical staff working in ICT should be enhanced reasonably.

    The Senate recommended that the government should allocate more funds for management of rain water reservoirs. A special fund should also be allocated for construction of new small/mini dams.

    Budgetary allocation of Higher Education Commission (HEC) should be enhanced to Rs100 billion.

    The upper house recommended that the government should allocate funds for improvement in the aviation sector and to upgrade airports all over the country.

    The government should expedite the process of loss making projects in a transparent manner.

    The government should raise the amount of funds allotted for locust control in 2020/2021, from Rs4 billion to Rs8 billion keeping in view of the losses suffered by small farmers in locusts affected areas.

    It is recommended to raise at least 50 percent in the corona stimulus package for fertilizer subsidy, loan remission and other relief to the farmers, keeping in view of covid-19 situation and food insecurity on account of locusts attacks.

  • Senate recommends tobacco must be treated as crop, exempted from duty/taxes

    Senate recommends tobacco must be treated as crop, exempted from duty/taxes

    ISLAMABAD: The Senate of Pakistan has recommended a significant policy shift, advocating for tobacco to be treated as a crop and exempted from duties and taxes. This recommendation was made in the context of the Finance Bill 2020, reflecting the upper house’s stance on the agricultural status of tobacco.

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  • Tax collection target of Rs4.96 trillion for 2020/2021 achievable

    Tax collection target of Rs4.96 trillion for 2020/2021 achievable

    ISLAMABAD: Hammad Azhar, Minister for Industries and Production, has said that the tax collection target of Rs4.96 trillion assigned to Federal Board of Revenue (FBR) during next fiscal year is achievable.

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