Category: Budget

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

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

ISLAMABAD: Pakistan has reduced the number of tax slabs for salaried persons through Finance Bill 2022 in the budget 2022/2023.

According to the Finance Bill, 2022 the government announced the reduction of salary tax slabs as well as incentive in tax payment for persons falling in the income range of Rs600,000 to Rs1.2 million.

Pakistan on June 10, 2022 presented its federal budget for the fiscal year 2022/2023. The budget carried several relief and taxation measures.

Finance Minister Miftah Ismail during his budget speech announced that the basic exemption for salaried persons has been increased to Rs1.2 million from Rs600,000.

As per income tax laws, the exempt income is not required to file income tax return and declaration of assets.

However, the Finance Bill, 2022 has clearly mentioned that the basic exemption from income tax for salaried persons is remained Rs600,000. However, persons falling in the income range of Rs600,000 and Rs1.2 million are required to pay a token amount of Rs100 as income tax on annual basis.

Therefore, it will be mandatory for persons falling under this income range to file income tax returns and declaration of assets. Besides, they will also be selected for audit.

Apart from this important amendment, the Finance Bill, 2022 also proposed to reduce the salary income slabs for the purpose of tax collection.

Following are proposed and existing income slabs and tax rates:

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.”

Following are the rates of tax for salaried persons during tax year 2022 (July 01, 2021 – June 30, 2022):

(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 11, 2022

Massive cut in subsidies to curtail current expenditures

ISLAMABAD: Pakistan has announced massive cut in subsidies and allocated an amount of Rs699 billion for the fiscal year 2022/2023 as compared with the amount of Rs1.515 trillion in the outgoing fiscal year.

The drastic cut in subsidies has been aimed at curtailing current expenditures to reduce the fiscal deficit.

READ MORE: Petroleum levy to generate Rs750 billion

Pakistan on June 10, 2022 presented its federal budget 2022/2023 which estimated current expenditure at Rs8.69 trillion during the next fiscal year as compared with estimated Rs8.516 trillion in the outgoing fiscal year.

An amount of Rs3.95 trillion has been allocated for mark-up payments for the fiscal year 2022/2023 as against Rs3.14 trillion in the outgoing fiscal year.

READ MORE: FBR assigned tax collection target of Rs7 trillion in 2022/2023

A whopping Rs3.44 trillion has been earmarked for mark-up payment on domestic debt during the next fiscal year as compared with Rs2.77 trillion in the current fiscal year. Meanwhile, an amount of Rs511 billion has been allocated for mark-up payment on foreign debt during next fiscal year.

The government estimated an amount of Rs530 billion for payment of pension during the next fiscal year. This amount includes Rs395 billion for the pension of military persons and Rs135 billion for the pension of civil employees.

READ MORE: Budget 2022/2023: Salient features of customs duty act

The government allocated an amount of Rs1.52 trillion for defence affairs and services during fiscal year 2022/2023 as compared with the estimated amount of Rs1.48 trillion in the outgoing fiscal year. The actual allocation was Rs1.37 trillion for the fiscal year 2021/2022.

An amount of Rs100 billion has been allocated for pay and pension during the next fiscal year.

READ MORE: Budget 2022/2023: Salient features of sales tax

The government earmarked an amount of Rs550 billion for running of civil government during fiscal year 2022/2023 as compared with Rs530 billion in the current fiscal year. The actual allocation for running of civil government was Rs479 billion in fiscal year 2021/2022.

June 11, 2022
Petroleum levy to generate Rs750 billion

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

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

READ MORE: FBR assigned tax collection target of Rs7 trillion in 2022/2023

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 next fiscal year.

The government has estimated a collection of Rs135 billion in the current fiscal year.

READ MORE: Budget 2022/2023: Salient features of customs duty act

The present government also estimated an amount of Rs40 billion through natural gas development surcharge during the next fiscal year as compared with existing estimates of Rs30 billion in the outgoing fiscal year.

An amount of Rs70 billion has been estimated to be collected from royalty on natural gas during the next fiscal year as compared with existing estimates of Rs60 billion in the current fiscal year.

READ MORE: Budget 2022/2023: Salient features of sales tax

Under the head of gas infrastructure development cess (GIDC) the government is estimating a collection of Rs200 billion during the next fiscal year as compared with existing Rs25 billion in the current fiscal year.

The government has also estimated a collection of Rs10 billion from windfall levy against crude oil as compared with estimated Rs12 billion in the outgoing fiscal year.

READ MORE: Budget 2022/2023: Salient features of income tax

June 11, 2022
FBR assigned tax collection target of Rs7 trillion in 2022/2023

ISLAMABAD: The Federal Board of Revenue (FBR) has been assigned a tax collection target of Rs7 trillion for the fiscal year 2022/2023 against the existing target of Rs6 trillion for the outgoing fiscal year.

According to the official documents of the budget 2022/2023, the FBR tax collection has been estimated at Rs7 trillion up 16.66 per cent from Rs6 trillion in the current fiscal year.

READ MORE: Budget 2022/2023: Salient features of customs duty act

The tax collection target under the head of direct taxes has been fixed at Rs2.573 trillion for the fiscal year 2022/2023 as compared to the estimated collection of Rs2.204 trillion in the current fiscal year.

Under the head of direct taxes, the income tax collection target has been set at Rs2.558 trillion as compared with Rs2.191 trillion.

READ MORE: Budget 2022/2023: Salient features of sales tax

The collection targets for workers welfare fund, workers profit participation fund and capital value tax have been set at Rs6.94 billion, Rs7.46 billion and Rs515 million, respectively.

The FBR has been assigned a target for indirect tax collection at Rs4.431 trillion for the fiscal year 2022/2023 as against estimated collection of Rs3.796 trillion in the outgoing fiscal year.

READ MORE: Budget 2022/2023: Salient features of income tax

The collection target for customs duty has been set at Rs953 trillion during the next fiscal year as compared with Rs817 billion in the current fiscal year.

The sales tax collection target has been set at Rs3.076 trillion for fiscal year 2022/2023 as compared with estimated collection of Rs2.635 trillion in the current fiscal year.

READ MORE: Pakistan allocates Rs800 billion for FY23 PSDP

An amount of Rs402 billion has been set as target for federal excise duty (FED) collection in the fiscal year 2022/2023 as against the existing estimate of Rs344 billion in the fiscal year Rs344 billion.

June 11, 2022
Budget 2022/2023: Salient features of customs duty act

ISLAMABAD: Following are salient features of amendments made to Customs Act, 1969 through Finance Bill, 2022.

GUIDING PRINCIPLES

(a) Remove anomalies in cascading structure of tariff.

(b) Promote and protect domestic industry by introducing targeted interventions.

(c) Rationalizing tariffs on industrial raw materials / intermediate goods.

READ MORE: Budget 2022/2023: Salient features of sales tax

ADOPTION OF WCO HS – 2022 VERSION:

The World Customs Organization (WCO) updates its Harmonized Commodity Description and Coding System (HS) after every five years to accommodate modern developments and changing trade patterns. The last HS version was updated in 2017. The current amendments to the HS nomenclature have entered into force since 1st January, 2022. Pakistan being a signatory to the HS Convention has obligation to adopt the HS 2022 version. Since, these amendments are required to be incorporated in the First Schedule to the Customs Act, 1969 (Pakistan Customs Tariff), therefore, Pakistan adopted the same by incorporating all of its latest amendments introduced in earlier nomenclature / HS codes in Pakistan Customs Tariff by the process of addition / deletion and creation of local PCT codes, accordingly. It will be effective from 1st of July, 2022.

READ MORE: Budget 2022/2023: Salient features of income tax

INDUSTRIAL RELIEF MEASURES:

1. To incentivize packaging industry, CD and ACD on various tariff lines pertaining to aluminum, polymers of ethylene, BOPP etc. have been downward rationalized.

2. Reduction in CD and ACD on 10 tariff lines pertaining to direct and reactive dyes.

3. To incentivize agricultural sector and farmers, customs duty exemption extended further to Farm Mechanization and Logistics including agricultural machinery pertaining to irrigation, drainage, harvesting / post- harvest handling & processing, plant protection equipment as well as machinery, equipment and other capital goods for miscellaneous agro based set ups in Sr. 1, 2 and 3 of Part-I of Fifth Schedule.

4. To incentivize Coating Industry, CD and ACD have been exempted on Aluminum paste and powder and CD and ACD have been reduced on glycerol crude and glycerol.

5. To incentivize manufacturers of filters other than automotive, CD and ACD have been reduced on their raw materials i.e, Adhesive, Epoxide resins, Filter media/ paper, Non-woven fabric media and Steel plates / sheets of prime quality.

6. To incentivize footwear industry, customs duties have been reduced on different categories of other woven fabrics and artificial flowers / foliage of other materials.

READ MORE: Pakistan allocates Rs800 billion for FY23 PSDP

7. To incentivize LED lights and bulbs manufacturers customs duties have been exempted on import of 05 more items i.e, Aluminum Electrolytic capacitor, SMT Electrical Transformer, aluminum alloy sheet, Tantalum capacitors (DIP/SMD) and Other inductors, small transformer, coil (DIP/SMD). Furthermore, the scope of exemption has also been extended for the manufacturers of Parts of LED light and Bulbs.

8. Tariff structure on the different tariff lines related to MDF / HDF have been rationalized evenly.

9. To encourage local manufacturers of brush ware, customs duties have been exempted on import of Poly-butylene terephthalate.

10. CD & ACD on import of Stamping foils have been exempted for manufacturing of Optical Fiber Cable.

11. Tariff structure on import of Synthetic filament yarn, monofilament, staple fibers of polypropylene has been rationalized to resolve the cascading issues.

12. To encourage export oriented industry, CD and ACD have been exempted on import of Guts, bladders and stomachs of animals etc.

13. Reduction in CD and ACD rates on import of Plywood, veneered panels & similar laminated wood, poly (methyl methacrylate), cyanoacrylate.

14. Extension in scope of concession on import of organic composite solvents and thinners for the manufacturers of Dibutyl Orthophthalates.

15. Rationalization of Tariff structure on import of IV Leaves extract powders and exemption of CD & ACD on its raw materials i.e, other plants and parts of plants from 3 per cent CD and 2 per cent ACD.

16. Exemption of customs duties on import of membrane for filtering / purifying water from 16 per cent CD & 4 per cent ACD.

17. Exemption of customs duties on 03 different raw materials for first aid bandages manufacturing industry from 5 per cent.

18. Reduction of customs duties on import of flavouring powders for food preparation for snacks manufacturers.

19. Exemption of CD & ACD on raw materials of aluminum conductor composite core manufacturers.

20. Exemption of CD & ACD on import of raw materials of paper sizing industry and chlorinated paraffin wax industry.

READ MORE: Federal government presents budget 2022-2023

RELIEF FOR COMMON MAN:

21. To keep the prices of medicines stable in the market and to encourage local manufacturing of pharmaceuticals, customs duties have been exempted on 26 more APIs and on one drug “Grafalon”.

22. Irisvision is for low vision individuals of all ages and with this gadget low vision persons can read and write easily, therefore customs duties have been exempted on import of Irisvision Device with its complete components.

REVIEW OF RD REGIME:

23. 10 per cent CD rate on import of motor spirit has been replaced with 10 per cent RD.

24. Continuation of 20 per cent RD on import of Disodium Carbonate to protect the local industry.

25. To encourage the vendor industry, RD has been reduced on import of case hardening steel from 30 per cent to 20 per cent.

26. Withdrawal of 15 per cent RD on import of Chrome yellow.

27. 10 per cent RD has been levied on import of Other paper, paperboard, cellulose wadding and webs of cellulose fibres to protect the local industry.

28. Withdrawal of RD exemption available on import of High Carbon Wire Rod.

29. RD on import of optical fibre cables has been increased from 10 per cent to 20 per cent to encourage the local manufacturers.

READ MORE: Tax exemptions cost Rs1.76 trillion in FY22

LEGISLATIVE CHANGES:

1. The definition of smuggling has been widened to include smuggling of essential commodities out of Pakistan through bordering and coastal areas to curb this menace.

2. To facilitate trade and industry, changes have been incorporated to align the provisions of the Customs Act, 1969 with the Pakistan Single Window (PSW) Act, 2021, providing platform for integration of other government agencies.

3. The timeline to finalize the provisional assessment has been reduced from existing nine months to four months to facilitate trade and avoid delay in realization of government revenue.

4. Powers regarding extension in warehousing period have been delegated to Additional Collector of Customs to facilitate trade by expediting grant of requests for extension.

READ MORE: Share of domestic electricity consumption declines

5. Option to change consignee name in relation to frustrated cargo has been provided to address the issue of port congestion.

6. Pecuniary jurisdiction of Additional Collector and Deputy Collector has been increased to rationalize the workload of adjudicating authorities and quick disposal of legal cases.

7. To reduce the cost of doing business and rationalize fees charged by the terminal operators, enabling provision has been provided for determination of various charges by customs authorities.

8. Provision has been incorporated to indemnify the officers of provincial governments for their actions taken in good faith to prevent the smuggling of essential commodities under the Customs Act, 1969.

June 11, 2022
Budget 2022/2023: Salient features of sales tax

ISLAMABAD: Following are the salient features of amendment made to Sales Tax Act, 1990 through Finance Bill, 2022.

The proposed budgetary measures pertaining to Sales Tax for FY 2022-23 are:

RELIEF MEASURES:

1. The condition of CNIC/NTN in case of supply to unregistered persons have been removed.

READ MORE: Budget 2022/2023: Salient features of income tax

2. Sales Tax exemption has been granted on import and supply of all types of seeds.

3. Sales Tax on Tractor is withdrawn.

4. Exemption has been granted on imports by UN diplomats/diplomatic missions and privileged persons.

5. Import and supply of solar panels (PV module) has been exempted from sales tax.

6. Goods imported by or donated to non-profit charitable hospitals have been exempted. Furthermore, goods supplied to charitable hospitals of fifty beds or more have also been exempted from sales tax.

7. Temporary imports have been exempted from the levy of the sales tax.

READ MORE: Pakistan allocates Rs800 billion for FY23 PSDP

8. Made up jewellery has been made chargeable to 3 per cent fix tax on local supply and 4 per cent fix tax on imports.

9. Plant and machinery imported by power generation projects that entered into implementation agreement with GoP has been exempted from sales tax.

10. Rs.90 per kg is reduced to Rs.60 per kg on potassium chlorate.

11. Import by EPZ has been exempted from sales tax.

READ MORE: Federal government presents budget 2022-2023

REVENUE MEASURES:

12. The scope of further tax has been enhanced to include non-active taxpayers as well.

13. Regime of other then Tier-1 retailers has been streamlined.

14. VAT has been imposed on compressor scrap, motor scrap and copper cutting scrap even when imported by manufacturers.

READ MORE: Tax exemptions cost Rs1.76 trillion in FY22

June 11, 2022
Budget 2022/2023: Salient features of income tax

ISLAMABAD: Following are the salient features of amendment made to Income Tax Ordinance, 2001 through Finance Bill, 2022.

REVENUE MEASURE:

1. Increase in tax rate for banks for tax year 2023 onwards from effective 39 per cent to 45 per cent.

2. Increase in tax rate of banking companies on adverse ADR ratio.

READ MORE: Pakistan allocates Rs800 billion for FY23 PSDP

3. Tax on higher earning persons for poverty alleviation for tax year 2022 and onwards.

4. Tax on deemed income from unutilized property above Rs. 25 million including luxury farmhouses and exclusive of one self-occupied house.

5. Increase in rate from 1 per cent to 2 per cent on sale and purchase of property for filers.

6. Increase in rate from 100 percent to 250 percent in case of purchase of property by persons who are not active taxpayers.

READ MORE: Federal government presents budget 2022-2023

7. Increase in rate of 200 from 100 percent in case of purchase of motor vehicles by persons who are not active taxpayers.

8. Level playing field for all classes of assets. Capital gain tax on disposal of securities and real estate synchronized along with incentives for vertical growth of cities.

9. Increase in advance tax rate on private vehicles of 1600 cc and above.

10. Increase in yearly advance tax rate on tax on passenger vehicles.

11. Omission of deductible allowance for profit on debt and tax credit for investment in shares, health insurance and pension funds.

READ MORE: Tax exemptions cost Rs1.76 trillion in FY22

12. Restriction on carry forward of minimum tax in subsequent years.

13. Omission of exemption on flying allowances and submarine allowance.

14. Omission of reduced rate of taxation for investment in Government securities.

15. Withdrawal of Income Tax (Amendment) Ordinance, 2022.

READ MORE: Share of domestic electricity consumption declines

RELIEF MEASURES:

1. Fixed tax regime for retailers and specified service providers.

2. Restriction on frequency of audits to once in four years.

3. Adjustment of tax collected on all materials at import stage for industrial undertaking for own use.

4. Relief on taxation for salaried and business individuals by increasing threshold for taxation.

5. Admissibility of 100 per cent depreciation in first year.

6. Reduction in tax rate from 10 per cent to 5 per cent on Bahbood certificates.

READ MORE: Average inflation estimated up to 12% in FY22

7. Withdrawal of withholding tax on educational expenses payments.

8. Exemption from tax on income of certain non-profit entities.

9. Reduced rate of 3 per cent on provision of services by REIT management company and NCCPL.

10. Withdrawal of withholding tax on rent of machinery.

11. Exemption from advance taxes to exempt entities.

STREAMLINING MEASURES:

1. Requirement for adoption of digital mode of payment for companies.

2. Clarification regarding exempt income of partners if income of AOP is exempt.

READ MORE: SBP jacks up policy rate by 6.75% to 13.75%

3. Introduction of Synchronized Withholding Administration Payment System.

4. Streamlining of audit procedures.

5. Increase in time limitation for best judgment from 5 to 6 years.

6. Enhancement of restriction for passing of order in from 120 to 180 days.

7. Clarification regarding remittance through money transfer operations.

DOCUMENTATION OF ECONOMY MEASURES:

1. Inclusion of concept of beneficial owner.

2. Alignment of Point of Sale regime with Sales Tax provisions and introduction of prize scheme.

READ MORE: Tax to GDP ratio estimated at 10.8% in FY22: Economic Survey

3. Increase in scope of tax on payments to non-residents and enhancement of rate from 5 per cent to 10 per cent on offshore digital services.

4. Increase in scope of criteria for becoming tax resident individuals.

5. Introduction of advance adjustable tax on credit/debit card payments.

6. Sharing of information between NADRA and FBR for tax base broadening.

June 11, 2022
Pakistan allocates Rs800 billion for FY23 PSDP

ISLAMABAD: Pakistan on Friday allocated Rs800 billion for the Public Sector Development Program (PSDP) for fiscal year 2022/2023.

The country presented the federal budget 2022/2023, which envisages PSDP worth 800 billion rupees for the next fiscal year.

It has been centered on improvement in sectors such as water resources, transport and communication, energy, higher education, health, science and technology, and balanced regional development.

READ MORE: Federal government presents budget 2022-2023

The emphasis of PSDP is also on revival of CPEC and related projects for inter-provincial and regional connectivity with equal importance to Special Economic Zones to promote trade, industrialization and create job opportunities.

The major thrust in the Information and Communication Technology sector including establishment and operations of Special Technology Zones.

Under the PSDP, the government has allocated 44.179 billion rupees including foreign aid of 1.3 billion rupees to the Higher Education Commission for implementation of 151 development projects.

READ MORE: Tax exemptions cost Rs1.76 trillion in FY22

The allocation indicates an increase of one hundred percent over the last year.

An allocation of over 197 billion rupees has been made for 117 power related projects.

These include hydro power generation projects such as Diamer-Bhasha, Mohmand, Nai Gaj and the fifth extension of Tarbela. Initiatives like developing water storages, automatic telemetry system, rainwater harvesting, decreasing water losses, ground water regulation and management would be undertaken in consultation with the stakeholders.

READ MORE: Share of domestic electricity consumption declines

Over nine billion rupees have been earmarked for Ten Billion Trees Tsunami Programme Phase-I to achieve the target of planting 500 million trees.

Similarly, over 563 million rupees and over 1.2 billion rupees have been allocated for installation of weather surveillance radars at Multan and Sukkur respectively.

The Federal PSDP has also proposed an amount of 1.5 billion rupees to complete the emergent nature of small flood schemes all over Pakistan.

READ MORE: Average inflation estimated up to 12% in FY22

An allocation of 227 billion rupees has been made for strengthening efficiency of transport and logistics for domestic commerce and regional connectivity.

The high impact infrastructure projects to be completed under Public Private Partnership mode include Sukkur-Hyderabad Motorway, Sialkot-Kharian Motorway, Kharian-Rawalpindi Motorway, and Karachi Circular Railway. Under the CPEC, D I Khan-Zhob section is under discussion with the Chinese side for financing and it is expected to be launched in the next financial year.

READ MORE: SBP jacks up policy rate by 6.75% to 13.75%

The concessional financing agreement for landmark ML-1 project is to be finalized in the second quarter of the next fiscal year and subsequently arrangements will be made for groundbreaking of the project.

A comprehensive National Action Plan for agriculture modernization has been prepared in terms of capacity building, agricultural product processing technology extension, fishery science and technology, aquaculture and aquatic products processing.

READ MORE: Tax to GDP ratio estimated at 10.8% in FY22: Economic Survey

June 11, 2022
Government employees get 15% salary increase

ISLAMABAD: The government on Friday announced a 15 per cent increase in employees of the federal government.

Finance Minister Miftah Ismail while presenting budget 2022/2023 announced increase in salary of government employees by 15 per cent.

READ MORE: Share of domestic electricity consumption declines

The finance minister said that despite the fact that country is facing a severe fiscal crisis now we are aware of the hardships faced by government employees.

Price hike has affected the household spending badly, especially that of salaried class but in spite of the severe fiscal difficulties and lack of resources. Salaries of government employees are being increased by 15 per cent in order to improve their purchasing power.

READ MORE: Average inflation estimated up to 12% in FY22

The basic threshold of taxable salary is proposed to be enhanced to 12 lac from the current 6 lac rupees for salaried individuals. This would pass tens of billions of rupees benefit to salaried people.

This will generate a positive economic cycle whereby this money would get transferred to the businesses as the disposable income of salaried people increases therefore ultimately, the government will benefit through the thriving of the business, the creation of more jobs, and tax revenues in the future.

READ MORE: Federal government presents budget 2022-2023

June 11, 2022
Federal government presents budget 2022-2023

ISLAMABAD: The federal government on Friday announced the budget for fiscal year 2022-2023. The budget looks progressive and provide better relief with a total outlay of Rs9.502 trillion to stabilize the poor economy and reduce the sufferings of oppressed segments of society.

The finance minister Miftah Ismail unveiled the budget and discussed of curtailing the imports and reducing the expenditures on luxury items.

READ MORE: Share of domestic electricity consumption declines

The finance minister said, “out of total Rs9.502 trillion budget, an amount of Rs2,950 billion had been allocated for debt servicing and Rs800 billion earmarked for the Public Sector Development Programme (PSDP 2022-23).”

He said that the amount of Rs1,523 billion had been earmarked for defence expenditures, Rs550 billion for civil administration and Rs530 billion for pensions. Similarly, Rs699 billion had been proposed for providing targeted subsidies to the poor segments of society.

READ MORE: Average inflation estimated up to 12% in FY22

The budget specially focused on fiscal consolidation to curtail overall deficit, prioritizing practical austerity measures along with strategies to enhance tax-to-GDP (gross domestic product) ratio, reduce gross public debt, slice trade and current account deficits, and promote sustainable economic growth.

Announcing the radical national development and pro-common man initiatives in the National Assembly, Miftah Ismail said that the budget was being presented at a critical juncture as the previous government had caused a huge damage to the economy during its three years and nine months tenure.

READ MORE: SBP jacks up policy rate by 6.75% to 13.75%

The finance minister said that the government had embarked on introducing drastic measures in the Federal Budget 2022-23 to uplift and put the economy on sustainable growth trajectory.

June 10, 2022