Budget 2024-25 Updates
GST on tier-1 textile retail sector enhanced from 15% to 18%, says Aurangzeb.
Capital markets
CGT on non-filers to go as high as 45%, while on filers of income tax returns, it will stay at 15%, says Aurangzeb.
Slabs for salaried group will change, says Aurangzeb.
“For non-salaried individuals, income tax can go as high as 45%.”
The government intends to maintain income tax exemption up to Rs0.6 million.
While Aurangzeb did not share the slabs during his speech, calculations done later by various bodies tax suggest much higher taxation on all income levels.
Rs12.97 trillion is FBR’s target, which is 38% higher than the outgoing fiscal year, says Aurangzeb.
“Rs1.5 trillion for PSDP, which is 101% higher than the previous year.”
“Rs4 billion allocation made for ‘e-bikes’ and another Rs2 billion for energy-saving fans that promote energy conservation,” says Aurangzeb.
Rs86.9 billion allocated to promote remittances in Pakistan, says Aurangzeb.
Rs79 billion allocated for IT sector, says Aurangzeb.
An IT park in Karachi. Allocation of Rs8 billion made for it, says finance minister.
Aurangzeb highlights focus on these areas for energy sector:
Reduce transmission and distribution losses
9 DISCOs privatisation
Reduce theft
Promote solar, energy, and wind
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Rs253 billion allocated for energy sector
BISP programme allocation has been increased by over 27%, says Aurangzeb.
“We have prepared a three-pronged strategy to reduce pension burden, and discussions on this has started,” says Aurangzeb.
“The government should not be doing business. We are starting a comprehensive programme to privatise state-owned enterprises,” says Aurangzeb.
“Pension reforms on the cards. I will mention them later in the speech,” says Aurangzeb.
Aurangzeb proposes what he calls a ‘National Fiscal Pact’ with all provinces
Pakistan engaging with IMF on a bigger programme, says Aurangzeb.
Aurangzeb begins budget announcement.
“This is a great honor for me to present the budget for fiscal year 2024-25,” says Aurangzeb.
“We are working on a homegrown reform to accelerate the economic growth of Pakistan.”
Ruckus in National Assembly mars start of session
Earlier, the delay came amid reports of rifts between the government coalition partners – Pakistan Peoples Party (PPP) and Pakistan Muslim League-Nawaz (PML-N) – over budgetary measures.
It was reported earlier that Prime Minister Muhammad Shehbaz Sharif signed the documents of the Federal Budget 2024-25 after its approval from the Federal Cabinet.
While Islamabad is hoping for a larger, longer facility with the IMF, its requirements are also likely to be tougher for Pakistan in pursuit of its 24th bailout.
Some areas of interest:
Manager Accounts
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