Category: Budget

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

Tax on deemed income arising from capital assets in Pakistan

KARACHI: A resident person, who owns capital assets in Pakistan, will be taxed on deemed income arising from capital assets for tax year 2022.

An important amendment has been made part of the Income Tax Ordinance, 2001 through Finance Act, 2022.

Experts at PwC A. F. Ferguson & Co. explained this provision of the ordinance made part through Finance Act, 2022, as a resident person owning capital assets in Pakistan will be taxed on deemed income arising from capital assets for tax year 2022 and onwards.

READ MORE: Pakistan imposes tax at 10% on money transfers to non-residents

For this purpose, such deemed income shall be computed as 5 per cent of the Fair Market Value (as determined by the FBR under section 68 of Income Tax Ordinance, 2001 of capital assets.

The rate of tax on such income is prescribed as 20 per cent.

This translates into an effective tax at 1 per cent of Fair Market Value of capital assets.

READ MORE: Significant changes to sales tax laws through Finance Act 2022

The experts said that an exclusionary definition of ‘capital asset’ has been provided, which effectively means that such tax is leviable only in respect of ‘immovable property’ situated in Pakistan owned by resident persons.

For the purposes of such tax; however, while following immovable properties shall stand excluded, the Federal Government has been empowered to notify any exclusion or inclusion of any person and/ or property from the scope of such tax:

(a) one immovable property owned by the resident person;

(b) self-owned business premises from where the business is carried out by the persons appearing on the active taxpayers’ list at any time during the year;

(c) self-owned agriculture land where agriculture activity is carried out by person excluding farmhouse (defined in a specified manner) and land annexed thereto;

(d) immovable property allotted to:

READ MORE: Key changes to income tax laws through Finance Act 2022

(i) a shaheed or dependents of a shaheed belonging to Pakistan Armed Forces;

(ii) a person or dependents of the person who dies while in the service of Pakistan armed forces or Federal or provincial government;

(iii) a war wounded person while in service of Pakistan armed forces or Federal or provincial government; or

(iv) an ex-serviceman and serving personnel of armed forces or ex-employees or serving personnel of Federal and provincial governments, being original allottees of the capital asset duly certified by the allotment authority;

(e) any property from which income is chargeable to tax under the Ordinance and tax leviable is paid thereon;

(f) immovable property in the first tax year of acquisition where tax under section 236K of the Income Tax Ordinance, 2001 has been paid;

(g) where the fair market value of the capital assets in aggregate excluding the capital assets mentioned in clauses (a) through (f) above does not exceed Rs 25 million;

READ MORE: Non-ATL retailers to pay double amount of fixed tax

(h) immovable property owned by a provincial government or a local government; or

(i) immovable property owned by a local authority, a development authority, builders and developers for land development and construction, subject to the condition that such persons are registered with Directorate General of Designated Non-Financial Business and Professions.

The constitutional validity of this tax in relation to entry 50 of the Fourth Schedule to the Constitution of Pakistan and the scope of any amount which can be deemed as income will have to be tested, they added.

July 8, 2022
Pakistan imposes tax at 10% on money transfers to non-residents

Pakistan has introduced a 10 percent tax on money transfers to non-residents lacking a permanent establishment within the country who derive income from various financial services.
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July 8, 2022
Significant changes to sales tax laws through Finance Act 2022

KARACHI: Significant changes have been made to sales tax laws through Finance Act, 2022 and that are applicable from July 01, 2022.

PwC A.F. Ferguson & Co interpreted the changes made to Sales Tax Act, 1990 through the Finance Act, 2022, which are as follow:

READ MORE: Key changes to income tax laws through Finance Act 2022

1. The requirement of CNIC / NTN for the purposes of invoices issued to unregistered persons and restriction of input tax attributed to such supplies retained to the extent of supplies to unregistered distributors.

2. Sales tax regime of pharma sector revamped with 1 per cent final sales tax on manufacturers and importers without any input adjustment.

3. The rate of fixed tax on other than Tier-1 retailers shall be increased by 100 per cent if the said retailers are not appearing on the Active Taxpayer List.

4. Fertilizers exempted from sales tax.

READ MORE: Non-ATL retailers to pay double amount of fixed tax

5. Value of supply not to include the amount of subsidy provided by the Federal Government or Provincial Government to the electricity consumer.

6. Through the Bill, ‘locally produced coal’ was proposed to be taxed at 17 per cent which has not been approved in the Act. It has now been subject to sales tax at higher of 17 per cent ad valorem or Rs 700 per metric tonne.

7. The proposed increase in sales tax rate from 5 per cent to 10 per cent for following has not been approved in the Act.

READ MORE: Tampering PSW data to attract 4-year jail sentence

— natural gas

— Phosphoric acid

8. Electric vehicle in CBU condition of 50 kwh battery or below is now subject to sales tax at 12.5 per cent.

9. Electric vehicle transport buses of 25 seats or more in CBU condition are now subject to sales tax at 1 per cent.

10. Changes proposed in the rate of sales tax on different categories of mobile / satellite phones have not been approved in the Act.

11. Online marketplace is now required to withhold sales tax at 1 per cent (instead of 2 per cent).

READ MORE: NA approves levy on petroleum products up to Rs50/liter

July 5, 2022
Key changes to income tax laws through Finance Act 2022

KARACHI: The Finance Act, 2022 has made significant changes to Income Tax Ordinance, 2001, which are applicable from July 01, 2022.

Following are the significant changes in Income Tax Ordinance, 2001 through Finance Act, 2022 as explained by PwC A.F. Ferguson & Co.:

READ MORE: Non-ATL retailers to pay double amount of fixed tax

1. Slab rates for super tax introduced for taxpayers having income in excess of Rs 150 million. The Bill earlier proposed such threshold at Rs 300 million at a standard rate of 2 per cent.

2. Super tax rate is enhanced to 10 per cent for certain specified sectors for tax year 2022 whereas for banking companies such enhanced rate of super tax will be applicable for tax year 2023.

READ MORE: Tampering PSW data to attract 4-year jail sentence

3. The proposal of final tax regime for commercial importers is withdrawn. Consequently, commercial importers will remain under minimum tax regime.

4. The proposal to restrict income tax holiday of certain IPPs withdrawn.

5. The standard rate of tax for banking companies revised at 39 per cent.

READ MORE: NA approves levy on petroleum products up to Rs50/liter

6. The revised slab rates for salaried individuals introduced by setting below taxable limit at Rs 600,000 as against the original proposal of Rs 1,200,000. Further, the reduction in tax rates proposed in Finance Bill has not only been reversed but the tax incidence has also been enhanced (as compared to position prior to Finance Bill).

7. The right to carry forward minimum tax retained, however, the period is reduced from five to three years.

8. The tax credit on contributions to Voluntary Pension Scheme retained.

9. The resident individual will now also include a citizen of Pakistan who was not in any one foreign country for more than 182 days.

10. The credit for income covered by final tax in respect of assets declared in wealth statement or books of account in excess of imputable income is inter alia subject to submission of audited financial statements.

READ MORE: All tax proposals of IT sector accepted: FBR

11. Advance tax on sale of immovable properties to be collected irrespective of holding period.

12. The rate of advance tax on imports mentioned in Part II of the Twelfth Schedule enhanced from 2 per cent to 3.5 per cent.

13. Reduced rate of Capital Gains Tax on listed securities based on holding period to apply on securities purchased on or after July 01, 2022.

July 5, 2022

Non-ATL retailers to pay double amount of fixed tax

ISLAMABAD: Small retailers or a shopkeepers have to pay double the amount of fixed tax in case of not appearing on the Active Taxpayers List (ATL).

The federal government through the Finance Bill, 2022 introduced a scheme of fixed tax for small retailers.

However, the National Assembly approved the bill with certain changes in the fixed tax regime. The Finance Act, 2022 now has binding on the small retailer to register themselves with the tax department and appear on the Active Taxpayers list (ATL) in order to avail the fixed tax facility.

Otherwise, in case of not appearing on the ATL, the small retailer is required to pay one hundred per cent more on the amount of fixed tax.

In order to collect the tax under this regime, the government decided to recover the amount through electricity bill.

In this regard certain amendments have been made to Sales Tax Act, 1990 and Income Tax Ordinance, 2001.

In sub section 9, Section 3 of Sales Tax Act, 1990, a new proviso has been inserted through the Finance Act, 2022, which stated:

“Provided that the above rates of tax shall be increased by one hundred percent if the name of the person is not appearing in the Active Taxpayers List issued by the Board under section 181A of the Income Tax Ordinance, 2001 on the date of issuance of monthly electricity bill.”

Similarly, a new Section 99A has been inserted to the Income Tax Ordinance, 2001 and approved through the Finance Act, 2022, which is as follow:

“99A. Special provisions relating to payment of tax through electricity connections.

(1) Notwithstanding anything contained in the Ordinance, a tax shall be charged and collected from retailers other than Tier-I retailers as defined in Sales Tax Act, 1990 (VII of 1990) and specified service providers on commercial electricity connections at the rates provided in clause (2A) of Division IV, Part IV of the First Schedule.

(2) A retailer who has paid sales tax under sub-section (9) of section 3 of Sales Tax Act, 1990 (VII of 1990), shall not be required to pay tax under this section and the sales tax so paid shall constitute discharge of tax liability under this section.

(3) The tax collected or paid under this section shall be final tax on the income of persons covered under this section in respect of business being carried out from the premises where the electricity connection is installed.

(4) For the purposes of this section, Board with the approval of the Minister in-charge may issue an income tax general order to-

(a) provide the scope, time, payment, recovery, penalty, default surcharge, adjustment or refund of tax payable under this section in such manner and with such conditions as may be specified.

(b) provide record keeping, filing of return, statement and assessment in such manner and with such conditions as may be specified;

(d) include or exempt any person or classes of persons, any income or classes of income from the application of this section, in such manner and with such conditions as may be specified.”

The rate of tax leviable under section (99A), and collectable under sub section (1A) of Section 235 shall be as under:-

Gross amount of monthly bill	Tax
Where the amount does not exceed Rs. 30,000	Rs. 3000
Where the amount exceeds Rs. 30,000 but does not exceed Rs. 50,000	Rs. 5000
Where the amount exceeds Rs. 50,000 but doesnot exceed Rs. 100,000	Rs. 10,000
Specified retailers and service providers through Income Tax General Order	Rs.50,000

July 5, 2022

Tampering PSW data to attract 4-year jail sentence

KARACHI: About four years jail term has been prescribed for tempering data of Pakistan Single Window (PSW).

According to Finance Act, 2022 certain amendments have been made to Customs Act, 1969 to prescribed fine and penalty for attempting to tamper or making unauthorized entry to the online data of PSW.

According to the Finance Act, 2022:

READ MORE: NA approves levy on petroleum products up to Rs50/liter

Offence: If any person makes or attempts to make unauthorized access to information, data or personal details of registered user of Pakistan Single Window system or systems connected or ancillary thereto;

Penalty: Imprisonment which may extend up to six months or with fine which may extend to one hundred thousand rupees or with both.

Offence: If any person makes or attempts to make unauthorized copy, transmission or cause to transmit any data, information or detail in relations to Pakistan Single Window system or systems connected or ancillary thereto;

READ MORE: All tax proposals of IT sector accepted: FBR

Penalty: Imprisonment which may extend upto six months or with fine which may extend to one hundred thousand rupees or with both.

Offence: If any person makes unauthorized interference, or attempt to interfere, damage or attempt to damage any part of whole of the Pakistan Single Window system or data or system connected to or ancillary thereto;

Penalty: Imprisonment which may extend to three years or fine which may extend to five hundred thousand rupees or with both.

Offence: If any person makes or attempts to make use of any information system, device or data to make any illegal claim or title or cause any person to part with property or to enter into any express or implied contract or intent to commit fraud by any input, alteration, deletion or suppression of data, resulting in unauthentic data with the intent that such data be considered or acted upon for legal purpose, as if it were authentic in relations to Pakistan Single Window system or Systems connected or ancillary thereto;

READ MORE: Pakistan’s salaried class unhappy over new tax changes

Penalty: Imprisonment which may extend to four years or fine which may extend to one million rupees or with both.

Offence: If any person uses, makes, supplies, retains, obtains device, system or software for offences under section 13 of the Pakistan Single Window Act, 2021 (III of 2021);

Penalty: Imprisonment which may extend to six months or with fine which may extend to one hundred thousand rupees or with both.

Offence: If any person obtains, sells, process, uses or transmits another person’s Unique User Identifier or makes an attempt thereof without authorization;

Penalty: Imprisonment which may extend to four years and fine which may extend to one million rupees or with both.

READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23

Offence: If any person tampers with or attempts to tamper with, alters, reprogrammes any Pakistan Single Window system or system connected or ancillary thereto for unauthorized use;

Penalty: Imprisonment which may extend to four years and fine which may extend up to one million rupees or with both and any devices or systems used in offence shall be liable to confiscation.

Offence: If any person writes, offers, makes available, distributes or transmits a malicious code or abets in the same, with intent to cause harm to Pakistan Single Window system or data resulting in or intending to result in corruption, destruction, alteration, suppression, theft or loss to the Pakistan Single Window system or data, or any attempt thereof.

Penalty: Imprisonment for a term which may extend to four years and fine which may extend to five million rupees or with both.

July 3, 2022
NA approves levy on petroleum products up to Rs50/liter

ISLAMABAD: National Assembly (NA) has approved a levy of Rs50 per liter on each petroleum product.

The assembly allowed the government to include the levy in the prices of petroleum products up to Rs50 per liter of each product.

READ MORE: All tax proposals of IT sector accepted: FBR

The National Assembly passed the Finance Act, 2022 that empowers the government to enforce the laws that were amended through federal budget 2022/2023.

In this regard amendment has been made to Petroleum Products (Petroleum Levy) Ordinance, 1961.

READ MORE: Pakistan’s salaried class unhappy over new tax changes

In this ordinance the fifth schedule has been amended as following:

High Speed Diesel: Rs50/liter

Motor Gasoline (Petrol): Rs50/liter

Superior Kerosene Oil (SKO): Rs50/liter

Light Diesel Oil (LDO): Rs50/liter

READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23

High Octane Blending Component (HOBC): Rs50/liter

E-10 Gasoline: Rs50/liter

Liquefied Petroleum Gas (Produced/extracted in Pakistan): Rs30,000 per metric ton.

The government has estimated a collection of Rs750 billion as petroleum levy during the fiscal year 2022/2023.

READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23

It is worth mentioning that the previous PTI government had not imposed a petroleum levy in order to provide petroleum products at cheaper rates.

However, the current coalition government led by PML-N in its budget 2022/2023 announced on June 10, 2023 estimated collection of Rs750 billion during the current fiscal year.

July 2, 2022
All tax proposals of IT sector accepted: FBR

ISLAMABAD: The Federal Board of Revenue (FBR) has said all pressing demands of IT sector have been accepted in the budget 2022/2023.

In a statement issued on Monday, the FBR has taken an exception to a statement issued by Pakistan Software Houses Association (P@SHA) dated June 25, 2022.

It has reported some facts regarding the exemptions/tax incentives / facilitation given to the IT and IT enabled export services through the Federal Budget 2022, tabled in the National Assembly on June 10, 2022.

READ MORE: Pakistan’s salaried class unhappy over new tax changes

Clarifying its position, FBR has stated that in the wake of the Budget, some important meetings were held with the representatives of IT sector through Pakistan Software Export Board (PSEB) and also with Federal Minister for IT, Syed Amin-Ul-Haque, and his team. During these meetings, almost all the key demands of the IT Sector were thoroughly deliberated and largely agreed.

FBR has further clarified that the amended Finance Bill will incorporate some tangible measures to facilitate the exporters of IT and IT enabled services. Almost all the pressing demands of the IT Sector have been accepted. The same have been announced in the speech by the Federal Finance Minister on 24th June, 2022 on the floor of the National Assembly.

These include the following six key concessions:

READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23

i) The sector has been provided a reduced tax rate of 0.25% on their export proceeds which is a quarter of the 1% export tax rate provided to all other exporters of goods.

ii) The sector has been removed from tax credit regime to simplify the tax filing system and to remove hassles of compliance that were earlier required to make them eligible for 100% tax credit to claim tax exemption.

iii) The requirements of filing of Withholding Tax Statements and Sales Tax return have been liberalized for the sector and only those who are required under the law will file WHT Statements or the Sales Tax Returns. For individuals having turnover up to Rs. 100 m per year there is no requirement to file WHT Statement or to deduct tax.

READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23

iv) The definition of IT and IT enabled services as provided under the Income Tax Ordinance, 2001 has been liberalized by expanding its scope by making suitable amendments and all inclusive, and “not limited to” definition has been provided.

v) IT and IT enabled services exporters have been provided the facility of obtaining Sales Tax refund in respect of any Sales Tax that has been paid as their input on computers, laptops, stationary other items etc. This facility is not available under the Provincial Sales Tax Law.

vi) The demand of the IT Sector of reviving tax exemption for Venture Capital Fund has been accepted and a new provision has been created for providing Income Tax Exemption to the Venture Capital Fund for three years.

READ MORE: Massive cut in subsidies to curtail current expenditures

It is pertinent to mention that the above exemptions and tax facilitations to boost exports of IT and IT enabled services were agreed and discussed in the meetings with the Federal Minister for IT, Syed Amin-Ul-Haque, and the representatives of the PSEB. It appears that the above statement given by P@SHA is on account of lack of information about the outcome of the decisions taken by the Honorable Finance Minister in that meeting and announced accordingly.

June 27, 2022

Pakistan’s salaried class unhappy over new tax changes

ISLAMABAD: The salaried class in Pakistan is in shock over the recent changes announced by the government and revert its decision to exempt income of salaried persons up to Rs1.2 million.

The government on June 10, 2022 presented the federal budget 2022/2023 announced major tax relief for salaried class by enhancing threshold from Rs600,000 to Rs1.2 million. Besides, the government also proposed to reduce the number of income slabs.

Through the Finance Bill, 2022 the government on June 10, 2022 proposed the following rates of tax on salary income:

Salary income slabs and tax rates proposed through Finance Bill, 2022:

S#	Taxable Income	Rate of Tax
(1)	(2)	(3)
1.	Where taxable income does not exceed Rs. 600,000	0
2.	Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000	Rs. 100
3.	Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000	7% of the amount exceeding Rs. 1,200,000
4.	Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000	Rs. 84,000 + 12.5% of the amount exceeding Rs. 2,400,000
5.	Where taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000	Rs. 234,000 + 17.5% of the amount exceeding Rs. 3,600,000
6.	Where taxable income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000	Rs. 654,000 + 22.5% of the amount exceeding Rs. 6,000,000
7.	Where taxable income exceeds Rs. 12,000,000	Rs. 2,004,000 + 32.5% of the amount exceeding Rs. 12,000,000.”

However, the government has taken a big U-turn and now proposed amendment to the Finance Bill, 2022 and decided to withdraw the exempt income threshold.

As per sources the government has proposed revision in salary tax rates for tax year 2023 effective from July 01, 2022. The following is the proposed rates for next tax year:

01. Where taxable income tax does not exceed Rs600,000: the tax rate should be zero.

02. Where taxable income exceeds Rs600,000 but does not exceed Rs1,200,000: the tax rate should be 2.5 per cent of the amount exceeding Rs1,200,000.

03. Where taxable income exceed Rs1,200,000 but does not exceed Rs2,400,000: the tax rate should be Rs15,000 + 12.5 per cent of the amount exceeding Rs1,200,000.

04. Where taxable income exceeds Rs2,400,000 but does not exceed Rs3,600,000: The tax rate should be Rs165,000 + 20% of the amount exceeding Rs2,400,000.

05. Where taxable income exceeds Rs3,600,000 but does not exceed Rs6,000,000: the tax rate should be Rs405,000 + 25 per cent of the amount exceeding Rs3,600,000.

06. Where taxable income exceeds Rs6,000,000 but does not exceed Rs12,000,000: the tax rate should be Rs1,005,000 + 32.5 per cent of the amount exceeding Rs6,000,000.

07. Where taxable income exceeds Rs12,000,000: the tax rate should eb Rs2,955,000 + 35 per cent of the amount exceeding Rs12,000,000.

The existing rate of income tax on the salary persons for tax year 2022 (July 01, 2021 – June 30, 2022) is as follow:

(2) Where the income of an individual chargeable under the head “salary” exceeds seventy-five per cent of his taxable income, the rates of tax to be applied shall be as set out in the following table, namely:—

1. Where taxable income does not exceed Rs. 600,000: 0%

2. Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000: 5% of the amount exceeding Rs. 600,000

3. Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000: Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000

4. Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000: Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000

5. Where taxable income exceeds Rs.2,500,000 but does not exceed Rs. 3,500,000: Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000

6. Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000: Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000

7. Where taxable income exceeds Rs. 5,000,000 but does not exceeds Rs. 8,000,000: Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000

8. Where taxable income exceeds Rs. 8,000,000 but does not exceeds Rs. 12,000,000: Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000

9. Where taxable income exceeds Rs. 12,000,000 but does not exceeds Rs. 30,000,000: Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000

10. Where taxable income exceeds Rs. 30,000,000 but does not exceeds Rs. 50,000,000: Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000

11. Where taxable income exceeds Rs. 50,000,000 but does not exceeds Rs. 75,000,000: Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000

12. Where taxable income exceeds Rs. 75,000,000 Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000.

June 25, 2022

Pakistan imposes fixed tax on gold shops

ISLAMABAD: Pakistan on Friday introduced a fixed tax regime for jewelers and decided to impose the fixed tax on gold shops measures a certain area.

Finance Minister Miftah Ismail while addressing on the floor of the house, stated that only twenty two gold shops out of thirty thousand are registered.

“A fixed tax will be levied on the gold shops measuring up to three hundred square feet whilst sales tax on big jewellery shops has been reduced from seventeen to three percent,” the finance minister said.

He further said withholding tax on sale of jewellery has been reduced to one percent from the current four percent.

Ismail said a fixed tax will also be imposed on car dealers, restaurants and those constructing houses. He said the tax has been imposed on income and not consumption. Therefore, these measures will not cause inflation.

READ MORE: Committee recommends lifting import ban on luxury items

The minister said that the government has decided to levy super tax on the affluent class to reduce budget deficit in order to end reliance on foreign assistance and take the country towards economic sovereignty.

Winding up discussion on the budget for the next fiscal year, he said individuals and companies earning 150 million rupees will have to pay one percent additional tax, two percent additional tax on 200 million rupees income, three percent on 250 million rupees income and four percent additional tax on 300 million rupees income. He said this tax will be for a period of one year.

The Minister for Finance said that thirteen high earning sectors including oil and gas, cigarettes, cement, LNG terminals have also been identified for imposition of ten percent super tax on income of three hundred million rupees. He clarified that this will be one time tax.

Miftah Ismail said that there are nine million retail shops and it has been decided to bring 2.5 million of them to the tax net.

READ MORE: FPCCI identifies tax anomalies in budget 2022-2023

The Minister said after incorporating various suggestions and measures the tax revenue target has increased to 7470 billion rupees for the next fiscal year. He said 4373 billion rupees will be distributed to provinces as their share.

The Finance Minister said that the government has tried to reduce burden on the weak segments of the society. He said that sugar, flour and ghee will be provided to the people at subsidized rates throughout the year at the Utility Stores. He informed the House that one million people have so far registered to avail Sasta Petrol and Sasta Diesel scheme.

The Minister also announced incentives for different sectors. He said the condition of withholding tax and statement for IT companies with the revenue of less than eighty million rupees will be exempted. He said a tax being charged from Oil Marketing Companies at the rate of 0.75 percent has been brought back to 0.5 percent. He said Overseas Pakistanis having NICOP card will be included in the active tax payers’ list. He said income on the plots of the families of martyrs and war injured has been exempted from tax. He said relief has also been given to leather and surgical goods.

READ MORE: FBR forms committees to remove anomalies in Finance Bill

The Finance Minister said the government has safe the country from default and know the country will be taken towards development. He said the previous government took an unprecedented loan of twenty-thousand billion rupees in four years. He questioned how a country can remain economically sovereign by taking huge loan that is why we have to revive the stalled IMF program. He said difficult decisions were taken in the national interest after consultations with all the allied parties. He said given the current account deficit which will remain 17.50 billion dollars, we have to agree to the IMF recommendations to safe the country from default.

Miftah Ismail said that this is the most pro-farmer budget ever presented in the last two decades. He said this farmer friendly budget will accrue long term benefits for the country and help bolster agri-products, besides achieving self-sufficiency in edible oil, wheat and other crops.

Talking about recommendations made by the Senate, he said most of the suggestion of the Upper House has been incorporated. He said Senate’s recommendations on pharmaceutical goods will be entertained in the next budget.

READ MORE: Key tax measures taken through Finance Bill 2022

June 25, 2022