Pkrevenue.com

Tag: budget 2021-2022

  • Budget 2021/2022: Universal Self Assessment Scheme restored; audit cases to be selected on risk-based system

    Budget 2021/2022: Universal Self Assessment Scheme restored; audit cases to be selected on risk-based system

    ISLAMABAD: Finance Minister Shaukat Tarin on Friday announced to restore Universal Self Assessment Scheme (USAS) in actual form to facilitate tax return filers.

    While presenting federal budget 2021/2022, the finance minister said that the lynchpin of economic policy would be resource mobilisation, especially tax revenues. We plan to fundamentally restructure the taxation regime and working of tax administration.

    These initiatives are the need of the hour as there are serious issues of public trust and confidence in our tax system.

    The proposed tax policy will emphasize on expansion of tax bases through identification of new taxpayers, gradual removal of exemptions and concessionary provisions and reduction in tax rates. We would also protect the existing taxpayers so that no further burden is placed on their tax liabilities.

    At the outset our tax policy would be based on the following principles:

    We will restore the purity of self-assessment scheme, which would mean that except when there is any “definitive information” contrary to the information disclosed in a tax return, all tax returns shall be deemed as assessment orders;

    The returns under self-assessment scheme would only be subjected to audit once they are chosen through an automated risk-based selection procedure;

    Furthermore, we would make use of outside auditors for carrying out the audit, which will be done remotely through an e-Audit system;

    These audits would be very serious and wilful evasion shall be considered a criminal offense carrying a jail term;

    We will strive to hit hard on harassment of taxpayers;

    The two taxes; tax on income and tax on consumption, would be the primary instruments of tax mobilisation;

    We will reorient the tax machinery to go after tax evaders, identify those who are outside the tax net when they should be inside, and make extensive use of information technology to detect prospective taxpayers and reach out to them through the use of electronic communications, thereby eliminating personal contact with the taxpayers;

    Progressivity in taxation shall be further strengthened – the rich will be asked to pay their due share in taxes.

    Exemptions available to powerful groups shall be removed;

    No new taxes shall be imposed on the salaried class;

    The system of track and trace will be implemented initially with four industries but would be expanded to the full spectrum of industrial and trading activities;

    A major plank of our strategy would be the expansion of GST base. In this regard, we would bring into the tax net all retail and wholesale transactions which are using emerging and evolving digital and electronic payment systems. To this effect, we would help traders install the point-of-sale (POS) equipment and link it up to the FBR system.

  • Budget 2021/2022: minimum wage increased to Rs20,000

    Budget 2021/2022: minimum wage increased to Rs20,000

    ISLAMABAD: The federal government on Friday presented budget 2021/2022 and announced increase in monthly minimum wage to Rs20,000 from Rs17,500.

    Finance Minister Shaukat Tarin while presenting the budget on floor of the house, announced to increase the minimum wage to Rs20,000 to reduce the burden on lower income group of rising prices.

    The minister also announced increase in pay and pension by 10 percent effective from July 01, 2021.

    He said that the government was aware of high prices and difficulties faced by the lower income group. He said that last year the government had taken austerity measures and due to this increase in salary and pension was not granted.

    He said that the economy had improved now and the government decided to increase the salary and pension by 10 percent.

    He said that from July 01, 2021 all employees of federal government would get adhoc relief of 10 percent. Similarly, pensioners would get increase of 10 percent in their pension from July 01, 2021.

    The government decided to increase integrated allowance for Grade 1 to Grade 5 employees of federal government from Rs450 to Rs900.

  • Govt. presents deficit budget 2021-22 with total outlay of Rs8.4 trillion

    Govt. presents deficit budget 2021-22 with total outlay of Rs8.4 trillion

    ISLAMABAD: The federal government on Friday presented a deficit budget with total outlay of Rs8.4 trillion with host of relief and budgetary measures.

    Presenting the fiscal year budget, Finance Minister Shaukat Tarin on floor of the house said despite the severity of 3rd wave of COVID-19 pandemic, the incumbent government in its third budget made remarkable allocations to carry out out massive development projects and welfare activities for the downtrodden segments of society, besides promoting the agriculture sector to ensure food security and reduce dependence on imports.

    He said the government steered the economy out of crisis and put it on the growth trajectory by pursuing prudent policies under the dynamic leadership of Prime Minister Imran Khan.

    The minister said the country was now out of dangerous situation as the government took initiatives for its economic sustainability as evident from 3.94 percent Gross Domestic Product (GDP) growth rate during the current fiscal year.

    The minister said it was for the first time that any government had to face a critical situation and it successfully put the economy on sustainable growth path.

    He said the Current Account was now $800 million in surplus, as compared to deficit of $20 billion at the end of last government.

    He said the previous governments had also manipulated exchange rate, which had adversely affected the economy, resulting into depletion of foreign reserves to $10 billion.

    However, they increased the reserves by taking loans, which were now being repaid by the incumbent government, he added.

    Tarin said the government had successfully fulfilled all the international commitments, besides putting the economy on growth trajectory. For the purpose, it had to take tough decisions, such as reducing public expenditures and enhancing revenues, he added.

    He said during the current year, the agriculture sector did perform well despite locusts attacks and all the major crops, except cotton, witnessed positive growth.

    Likewise, the services and the large scale manufacturing sectors also had considerable growth despite COVID-19 factor, he added.

    The minister said one of the top priorities of incumbent government was to uplift the downtrodden segments, and for the purpose 40% of the total population was given cash transfers, besides providing relief to 15 million households across the country.

  • Budget 2021/2022: salient features of budgetary measures in Customs Duty

    Budget 2021/2022: salient features of budgetary measures in Customs Duty

    ISLAMABAD: The federal government on Friday presented budget 2021/2022 and announced measures in regime of customs duty.

    GUIDING PRINCIPLES

    (a) Remove anomalies in cascading structure of tariff

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

    (c) Enhance import-substitution by rationalizing tariffs on industrial raw materials / intermediate goods

    (d) Facilitate export-oriented manufacturing by reviewing the existing exemption regimes & export schemes

    INDUSTRIAL RELIEF MEASURES

    1. Reduction / exemption of CD, ACD & RD on import of goods falling under 589 PCT codes to incentivize the textile industry.

    2. Reduction / exemption of CD, ACD & RD on import of flat rolled products of HRC and stainless steel.

    3. Reduction / exemption of CD and ACD on raw materials and intermediary goods and point of sale machines falling under 328 tariff lines as a consequent of tariff rationalization.

    4. To incentivize the pharmaceutical sector and to keep the prices stable in the market, –

     Exemption of CD & ACD on more than 350 APIs

     Plant, machinery and equipment subject to concessionary rate of 5%

     Exemption of CD & ACD on raw material of auto-disable syringes and Reduction in tariff on finished auto-disable syringes

    5. Reduction / exemption on inputs / raw materials of food processing industry.

    6. Reduction of CD & ACD on uncoated paper and paperboard for printing and graphic arts industry.

    7. Reduction / exemption of CD & ACD on Vaccines for veterinary medicines and feed additives to incentivize the dairy sector.

    8. Reduction / exemption of CD & ACD on goods falling under more than 100 PCT codes relating to Tourism industry.

    9. Reduction of duties on raw material/inputs of footwear industry.

    10. Reduction / exemption of CD & ACD on inputs for poultry industry.

    11. Reduction / exemption of CD & ACD on raw material for manufacturer of aseptic plastic packaging.

    12. Exemption of ACD on import of raw materials for cables / optical fiber manufacturers.

    13. Reduction / Exemption of CD & ACD on raw materials for Paint Industry.

    14. Reduction / Exemption of CD & ACD on raw materials for Chemical and Artificial Leather Industry.

    15. Reduction / Exemption of CD & ACD on inputs for Electronics Manufacturing Industry.

    16. Reduction / exemption of CD & ACD on raw materials / inputs of furniture, coating, boiler manufacturing industry, bobbins and cops manufacturing industry etc.

    RELIEF TO COMMON MAN

    17. Reduction of ACD on goods falling under 2436 tariff lines pertaining to 20% customs duty slab from 7% to 6%.

    18. Extension in exemption from customs duties on import of COVID-19 related items for further six month.

    19. Exemption of CD &ACD on Inputs of Ready-To-Use Supplementary Foods (RUSF) and Ready-To-Use Therapeutic Food (RUTF).

    20. Exemption of CD & ACD on 06 life-saving drugs.

    21. Enhance the value of unsolicited gifts through post or courier from Rs.20,000 to 30,000.

    22. Exemption of CD & ACD on import of grain storage hermetic bags and cocoons.

    23. Rationalization of tariff structure on auto sector.

    REVIEW OF REGULATORY DUTY (RD) REGIME:

    24. Rationalization of RD on import of Mobile Phones to encourage import substitution

    25. Increase in rates of RD on import of non-essential / luxury items to support local industry.

    26. Reduction of RD on import of cocoa paste, butter and powder being industrial input goods.

    EXPORT FACILITATION MEASURES:

    27. To ease of doing business, a new Uniform Export Facilitation Scheme is being proposed. The existing schemes shall be phased out in next two years.

    28. Bond to Bond Transfer of goods through WeBOC without prior approval of the Collector is being proposed to be allowed.

    29. Reduction of RD on export of molasses, skin and hides to boost positive image of the country with our important trading partners across the world.

    MISCELLANEOUS

    1. Establishment of Border Sustenance Markets to mitigate the problems faced by the people residing in border areas due to fencing and counter-smuggling measures.

    LEGISLATIVE CHANGES:

    1) Introduction of a concept of Common bonded warehousing to encourage Small and Medium Enterprises.

    2) Empowering Collector of customs to determine customs value there by facilitating trade.

    3) Enabling the Director General Valuation to take appropriate decision on appeal and capping the time limit for such proceedings. Facilitation of trade by avoiding time consumed in unnecessary litigations.

    4) Allowing the importers to amend manifest till berthing event without seeking approval from custom authorities and hence ease of doing business.

    5) Enable customs authorities to allow bonafide amendment in into-bonds goods declaration and thus facilitate trade.

    6) Allowing the Collector to extend warehousing period for six months. Reducing the processing time of the requests and promoting ease of doing business.

    7) Reducing the time limit allowed for decision of the cases wherein the impugned goods are lying at sea ports, airports or dry-ports and thus decreasing the cost of doing business.

    8) Enable customs authorities to issue correction / corrigendum certificate in case of genuine / obvious error and facilitate trade.

    9) Inclusion of other law enforcement agencies for the purpose of reward and increasing their motivation.

    10) Affording opportunity of being heard to the registered users of WeBOC in accordance with the canons of natural justice.

    11) Increasing the period of validity of advance ruling from the current one year to three years in accordance with international benchmarks and facilitating trade thereof.

    12) Provision for the classification committee to avoid unnecessary litigation on account of classification disputes and consequently decreasing the cost of doing business.

    13) Removal of fine in case of delay in filing of goods declaration and thereby providing ease of doing business.

    ENFORCEMENT FEATURES:

    1) Inclusion of master bill of lading and certificate of origin in the existing definition of document to discourage origin fraud.

    2) Inclusion of the retailing in definition of smuggling to discourage retailers from selling smuggled goods.

    3) Making shipping lines responsible for re-export of banned items imported in commercial quantities.

    4) Increasing the pitch of fine in case of non-placement of invoice and packing list in container to inculcate compliance.

    5) Discouraging smuggling by denying release of vehicles used repeatedly for smuggling against redemption fine.

  • Budget 2021/2022: salient features of budget measures in sales tax regime

    Budget 2021/2022: salient features of budget measures in sales tax regime

    ISLAMABAD: The federal government on Friday presented budget 2021/2022 and announced following budgetary measures pertaining to Sales Tax:

    REVENUE MEASURES

    1. The sale of goods through online market place is proposed to be brought into the sales tax net by deeming the online market place as supplier in respect of third party sales through their platform.

    2. For specified goods, it is proposed that it may be made mandatory for manufacturers of such goods to obtain brand license for each separate brand or SKU.

    3. Section 56C provides for prize scheme to promote tax culture. To ensure that the said incentive is not misused, a new sub-section is proposed to be inserted to provide for randomize “mystery shopping”.

    4. The rate of sales tax on potassium chlorate is proposed to be increased from Rs. 80 per kg to Rs. 90 per kg in addition to 17% standard rate.

    5. Zero-rating is proposed to be withdrawn from Petroleum Crude Oil, parts/components of zero-rated plant and machinery, import of plant and machinery by petroleum and gas sector and supply, repair and maintenance of ships.

    6. Sixth Schedule is proposed to be streamlined and exemptions other than relating to basic food items, health and education are proposed to be withdrawn.

    7. Eighth Schedule is proposed to be streamlined and reduced rates other than relating to basic food items, health and education are proposed to be brought into standard regime.

    8. Reclaimed lead and used lead batteries is an unorganized sector. Therefore, entire amount of sales tax in respect of sales of such goods is proposed to be withheld at source under Eleventh Schedule.

    9. To ensure collection of due taxes, sales tax on sugar is proposed to be levied on retail price by including the said product in Third Schedule.

    RELIEF MEASURES

    10. The minimum annual threshold of turnover from all supplies for cottage industry is proposed to be increased from Rs. 3 million to Rs. 10 million.

    11. The threshold of shop area in case of furniture outlet/showrooms is proposed to be increased from 1000 square feet to 2000 square feet for inclusion in tier-1 retailer.

    12. Public limited companies are proposed to be excluded from the purview of section 8B.

    13. A separate section introduced for allowing extension of time for furnishing of return.

    14. Exemption is proposed to be granted to art and printing paper for publication and printing of Holy Quran.

    15. Exemption on import of CKD kits for electric vehicles by manufacturers granted by Tax Laws (Amendment) Ordinance, 2021 is proposed to be incorporated in the Sixth Schedule.

    16. To facilitate international athletes, exemption to goods temporarily imported by athletes/sportsmen granted by Tax Laws (Amendment) Ordinance, 2021 is proposed to be incorporated in the Sixth Schedule.

    17. Tax exemption to auto disable syringes granted vide Tax Laws (Second Amendment) Ordinance, 2021 is proposed to be incorporated in the Sixth Schedule.

    18. To encourage IT industry in the country, import of plant, machinery and raw material by Special Technology Zone is proposed to be exempted from sales tax.

    19. To facilitate farmers and encourage storage of grain, tax exemption on locally manufactured silos is proposed to be granted till 30.06.2026.

    20. Reduced rate of sales tax @ 1% on locally supply of electric vehicles granted vide Tax Laws (Amendment) Ordinance, 2021 is proposed to be incorporated in the Sixth Schedule.

    21. In order to address litigation issue, fixed tax on SIM cards is proposed to be deleted with effect from 1st July, 2020.

    22. Exemption from value addition tax on import of electric vehicles, CKD kits for small car, 2-3 wheelers, HCVs and all these vehicles in CBU conditions was granted vide Tax Laws (Amendment) Ordinance, 2021 is proposed to be incorporated in the Twelfth Schedule.

    23. For facilitation purpose, the concept of constructive payment is proposed to be introduced in section 73.

    24. To provide relief to the registered persons, the benefit of compensation for delayed payment of refund is also proposed to be extended to those persons in whose case order under section 66 is passed.

    25. For promoting ease of doing business, the concept of Common Identifier Number is proposed to be introduced.

    26. For establishment of Border Sustenance Markets, exemption from sales tax is proposed to be granted on food related and other consumable goods.

    27. In order to introduce umbrella Export Facilitation Scheme by Customs Wing, exemption on import and zero-rating on local supplies in respect of raw materials, components, parts and plant and machinery to authorized exporters is proposed.

    28. Rising prices of locally manufactured small cars is a major concern for low earning families. Accordingly it is proposed that small cars upto engine capacity of 850cc may be exempted from value added tax besides reducing sales tax rate from 17% to 12.5%.

  • Budget 2021/2022: salient features of budgetary measures in federal excise duty

    Budget 2021/2022: salient features of budgetary measures in federal excise duty

    ISLAMABAD: The federal government on Friday presented budget for fiscal year 2021/2022 and proposed following budgetary measures pertaining to Federal Excise Duty (FED):

    REVENUE MEASURES

    1. In order to reap reasonable revenue from this sector, federal excise on mobile phone calls exceeding three minutes @ Re 1 per call, SMS message @ Re. 0.1 per SMS, and internet data usage @ Rs. 5 per GB is being proposed. This will result into mild taxation of a broad spectrum of population.

    2. Electronically heated tobacco products are also proposed to be brought into the tax net by inserting new S. No. 8c of Table-1 of the First Schedule to the Federal Excise Act, 2005.

    RELIEF MEASURES

    3. In order to facilitate the people of tribal area and encourage investment and economic growth in these areas, exemption is being given from levy of FED to the industrial units located in FATA and PATA.

    4. The provision to revise return without prior approval of the Commissioner-IR which is available in Sales Tax Act, 1990 is now proposed to be made available in Federal Excise Act, 2005.

    5. Exemption from federal excise duty to 4-wheelers granted vide granted vide Tax Laws (Amendment) Ordinance, 2021 is proposed to be incorporated in the Federal Excise Act.

    6. The rate of federal excise duty on telecommunication is proposed to be reduced from 17% to 16%.

    7. Payment on account of Merchant Discount Rate (MDR) is proposed to be excluded from the purview of FED.

    8. For establishment of Border Sustenance Markets, exemption from federal excise duty is proposed to be granted on food related and other consumable goods.

    9. Rising prices of locally manufactured small cars is a major concern for low earning families. Accordingly it is proposed that small cars upto engine capacity of 850cc may be exempted from federal excise duty.

    10. In order to introduce new Export Facilitation Scheme, 2021, exemption on import and zero-rating on local supplies in respect of raw materials, components, parts and plant and machinery to registered persons is proposed.

    11. Federal excise duty on fruit juices was imposed vide Finance Act, 2019 and resultantly, prices of juices were increased. Moreover due to pandemic, this sector is faced with adverse situation. In order to provide relief to this sector, it is proposed to withdraw federal excise duty on juices.

  • Budget 2021/2022: salient features of measures taken in income tax

    Budget 2021/2022: salient features of measures taken in income tax

    ISLAMABAD: The federal government on Friday announced budget for fiscal year 2021/2022 and notified relief and revenue measures in income tax.

    REVENUE MEASURES

    • Special regime for export of services at par with export of goods to be taxed @ 1% under final tax regime.

    • Elimination of block taxation of property income and shift to normal tax regime.

    • Reduction of block taxation on capital gain on disposal of immoveable properties if gain exceeds Rs. 20 million.

    • Reduction in block taxation on interest income, if it exceeds Rs. 5 million.

    • Tax on “on” money on vehicles, if vehicle is disposed without registration.

    • Expansion of scope of withholding tax collection from supply chain below manufacturers and importers of specified sectors (sections 236G and 236H).

    • Reduction in threshold of monthly electricity bill for withholding tax on electricity consumption from 75,000 to 25,000 from domestic users not appearing on Active Taxpayers’ list.

    • Removal of requirement of issuance of separate notice in concealment cases.

    • Withholding of tax on rental income of sub-lessee.

    • Broadening of scope of withholding agents for the purpose of collection of withholding tax on commission income (section 233).

    • Streamlining withholding tax collection on sale and purchase of immoveable property (section 236C and 236K).

    • Rationalization of withholding tax regime for exporters.

    • Taxability of profit on debt component of GP fund and other such funds.

    • Withdrawal of personal income tax exemptions.

    • During the current financial year, Tax Laws (Second Amendment) Ordinance, 2021was promulgated to implement corporate income tax reforms to provide level playing field to all businesses. Certain tax credits, concessions and exemptions were withdrawn. The provisions of the Ordinance have been made part of the Finance Bill.

    RELIEF MEASURES

    • Deletion of 12 withholding taxes

    Sections of Income Tax Ordinance, 2001

    153B: Collection of tax on payment of royalty to residents.

    231A: Collection of tax on cash withdrawal.

    231AA: Collection of tax on banking instruments.

    236P: Collection of tax on banking transactions other than through cash.

    236Y: Collection of tax from persons remitting amounts abroad through credit or debit or prepaid cards.

    236B: Collection of tax on domestic air travel.

    236L: Collection of tax on international air travel.

    236V: Collection of tax on extraction of minerals.

    233A: Collection of tax from members by a stock exchange registered in Pakistan.

    233AA: Collection of tax on marginal financing by NCCPL.

    234A: Collection of tax from CNG stations.

    236HA: Collection of tax on certain petroleum products.

    • Merging of 3 withholding taxes with other existing provisions

    Merged with

    150A: Deduction of tax on return on investment in Sukuks.

    Proposed to be merged in section 151 for residents and in section 152 for non-residents which deal with such payments.

    152A: Deduction of tax on payments for foreign produced commercials.

    To be merged with section 152 which deals with payments to non-residents.

    236S: Collection of tax on dividend in specie.

    To be merged with section 150 which deals with dividend.

    • Reduction in generalized rate on Minimum Tax on Turnover basis and increase in threshold for individuals and AOPs for chargeability of minimum tax.

    • Broadening of scope of IT services by inclusion of cloud computing and data storage services.

    • Exemption to Special Economic Zone Enterprises from payment of minimum tax.

    • Ten year tax exemption for Special Technology Zone Authority, Zone Developers and Zone Enterprises.

    • Tax exemption on the import of capital goods and dividend income of private funds from investment in special technology zone enterprise.

    • Introduction of special tax regime for manufacturing SMEs.

    • Exemption from tax on income of deep conversion new refineries and BMR projects of existing refineries for 10 years.

    • Reduced rate of withholding tax of 3% on oilfield services, warehousing services, logistic services, collateral management services and telecommunication services.

    • Inclusion of telecommunication services in definition of industrial undertaking.

    • Exemption to Electronic warehousing receipts traded on Pakistan Mercantile Exchange.

    • Allowance of provincial WWF and WPPF as a deductible allowance while calculating income.

    • Adjustment of business loss against property income.

    • Unconditional grant of exemption from tax to certain organizations.

    • Withdrawal of power of Commissioner to reject advance tax estimates presented by taxpayer.

    • Non recognition of gain/loss on disposal of assets to non-residents under gift from relative, inheritance and agreement to live apart.

    • Reduction in tax rate on capital gain tax on disposal of securities from 15% to 12.5%.

    • Withdrawal of power of tax authorities to conduct inquiry under section 122(5A).

    • Inclusion of live animals, raw hides and unpackaged meat in definition of agriculture produce.

    • Reduction in tax liability by 25% for women entrepreneurs.

    • Exemption from tax on import of books and agriculture equipment.

    • Exemption from tax for bagasse fired power generating units and reduced rate of tax on dividend income from such projects.

    • Extension in time limits for availing tax benefits under section 100D and Eleventh Schedule vide Income Tax (Amendment) Ordinance 2021 dated 21.02.2021 made part of the bill.

    • Tax exemptions and concessions for Roshan digital accounts and implementation of electric vehicles and mobile phone policy implemented vide Tax Laws (Amendment) Ordinance, 2021 dated 11.02.2021 made part of bill.

    STREAMLING MEASURES

    • Strengthening mechanism of Alternate dispute resolution.

    • Elimination of requirement of filing of application for automated issuance of refund.

    • Introduction of time limitation for disposal of show cause notices.

    • Recording of e-hearing to be admissible evidence.

    • Automated issuance of exemption certificates if application is not disposed by Commissioner within 15 days.

    • Removal of requirement of updating tax profile.

    • Clarity regarding taxation of income of co-operative societies from sale and services to its own members.

    • Delegation of power of Federal Government to Board with the approval of Federal Minister in-charge.

    • Extension of time limitation for issuance of notice for filing of return in case of foreign income or foreign assets.

    • Time limitation for completion of assessment in pursuance of orders of the Commissioner.

    • Streamlining measure for monitoring of withholding taxes requiring taxpayers to file online statement along with reconciliation.

    • Establishment of Directorate of compliance Risk Management in FBR.

    DOCUMENTATION MEASURES

    • Tax credit on installation of point of sale machines.

    • Notification of business bank accounts made mandatory.

    • Measures for the documentation of business of used cars.

    • Harmonization of procedure for investigation and prosecution of offences under domestic tax laws.

  • Budget 2021/2022: key features of spending under public sector development program

    Budget 2021/2022: key features of spending under public sector development program

    ISLAMABAD: The federal government on Friday presented budget for fiscal year 2021/2022 and allocated Rs900 billion for public sector development program (PSDP).

    Following are the highlights of allocations PSDP for various ministries and divisions for the fiscal year 2021-22 announced by the Federal Government here Friday:

    — Total outlay of the PSDP for the fiscal year 2020-21 is Rs 2.1 trillion

    — The share of federal PSDP is Rs 900 billion while that of provincial PSDP is Rs 1.235 trillion.

    — Rs 3,558.2 million has been earmarked for Aviation Division.

    — Board of Investment will get Rs 80 million.

    — Rs 46,155 million has been earmarked for Cabinet Division.

    –The Climate Change Division will get Rs 14,327 million.

    — Rs 1,613 million has been set aside for Commerce Division.

    — Rs 451.32 million are allocated for Communication Division (other than NHA).

    — Rs 1,977.63 million has been earmarked for Defence Division.

    — Rs 1,745 million has been set aside for Defence Production Division.

    — Rs 800 million are allocated for Establishment Division.

    — The Federal Education and Professional Training Division will get Rs 9,700 million.

    — Rs 123,131 million has been allocated for Finance Division.

    — The Higher Education Commission (HEC) will get Rs 42,450 million.

    — Rs 24,211.5 million has been earmarked for Housing and Working Division.

    — Rs 279 million will be provided to Human Rights Division.

    — Rs 2,916 million has been set aside for Industries and Production Division.

    — Rs 1,899 million are allocated for Information and Broadcasting Division.

    — Rs 9,361.05 million will be provided to Information Technology and Telecom Division.

    — Rs 3,734.73 million has been set aside for Inter-Provincial Coordination Division.

    — Rs 2,1048.71 million has been granted for Interior Division.

    — Rs 69,959.9 million has been earmarked for Kashmir Affairs & Gilgit Baltistan Division.

    — Rs 6,027.35 million has been earmarked for Law and Justice.

    — Rs 4,461 million has been allocated for Maritime Affairs Division.

    — Rs 489.39 million has been granted to Narcotics Control Division.

    — Rs 12,017 million has been earmarked for National Food Security and Research Division.

    — Rs 21,722 million has been allocated for National Health Services, Regulation & Coordination Division.

    — Rs 125.9 million has been provided for National Culture and Heritage Division.

    — Rs 27,000 million has been earmarked for Pakistan Atomic Energy Commission.

    — Rs 200 million has been set aside for Pakistan Nuclear Regulatory Authority.

    — Rs 2,349.5 million has been earmarked for Petroleum Division.

    — Rs 19,245.5 million has been allocated for Planning, Development and Special Initiatives Division.

    — Rs 589.9 million has been allocated for Poverty Alleviation and Social Safety Division.

    — Rs 30,025.6 million has been set aside for Railway Division.

    — Rs 493 million has been allocated for Religious Affairs and Interfaith Harmony Division.

    — Rs 4,025.06 million has been earmarked for Revenue Division.

    — Rs 8,341 million has been earmarked for Science and Technology Research Division.

    — Rs 7,368.86 million has been earmarked fr SUPARCO.

    — Rs 103,472.69 million has been allocated for Water Resource Division.

    — Rs 113,750 million has been set aside for National Highway Authority.

    — Rs 69,485 million has been allocated for NTDC/PEPCO.

    — Rs 5000 million has been set aside for COVID Responsive and Other Natural Calamities Programme.

    — Rs 61,500 million for Viability Gap Fund (VGF)

    — Rs 22,000 million set aside for SDGs supplementary fund

  • Budget 2021/2022: salary and pension increased by 10 percent

    Budget 2021/2022: salary and pension increased by 10 percent

    ISLAMABAD: The federal government on Friday presented budget 2021/2022 and announce an increase of 10 percent in basic salary and pension of the government employees.

    While delivering the budget speech for the year 2021-22, Minister for Finance Shaukat Tarin announced that the increase in salaries and pensions of the federal government employees would be applicable from July 01, 2021.

  • Budget 2021/2022 at a glance

    Budget 2021/2022 at a glance

    ISLAMABAD: The federal government on Friday presented budget for fiscal year 2021/2022.

    Following is the budget at a glance:

    Total resources: Rs8,487 billion

    Total revenue (Federal Board of Revenue): Rs5,829 billion

    Non Tax Revenue: Rs2,080 billion

    • Gross Revenue Receipts: Rs7,909 billion
    • Less Provincial Share: Rs3,412 billion
    • Net Revenue Receipts (a-b):  Rs4,497 billion
    • Non Bank Borrowing (NSSs & Others): Rs1,241 billion
    • Net external receipts: Rs1,246 billion
    • Estimated provincial surplus: Rs570 billion
    • Bank Borrowing (T-Bills, PIBs, Sukuk): Rs681 billion
    • Privatization Proceeds: Rs252 billion

    Total Expenditures Rs8,487 billion

    1. Current: Rs7,523 billion

    Interest payments: Rs3,060 billion

    Pension: Rs480 billion

    Defence Services: Rs1,370 billion

    Grants and Transfers to Provinces and Others: Rs1,168 billion

    Subsidies: Rs682 billion

    Running of Civil Government: Rs479 billion

    Provision for contingencies and Fund: Rs25 billion

    Provision for Disaster/Emergency/ COVID: Rs100 billion

    Provision for pay and pension: Rs160 billion

    • Development: Rs964 billion

    Federal PSDP: Rs900 billion

    Net lending: Rs64 billion