Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb proposed major changes in tax policies while presenting Pakistan’s federal budget for the fiscal year 2024-25, which has a total outlay of Rs18 trillion.
During his budget speech in the National Assembly, he outlined several key tax policy adjustments aimed at increasing government revenue.
Key Proposals in the Tax Policy:
- Sales Tax on Mobile Phones: An 18 percent sales tax on different categories of mobile phones.
- Withdrawal of Exemptions: Proposals to withdraw exemptions on various items, depending on their categories.
- Import Duties on Luxury Cars: An increase in import duties on luxury cars worth over $50,000.
- Import Duty on Steel and Paper Products: A proposal to increase the import duty on steel and paper products.
Development Budget and Projects:
The finance minister announced a significant increase in the development budget by 101 percent, with 81 percent allocated for ongoing schemes and 19 percent for new initiatives. Key projects include:
- Quaid-e-Azam Health Tower in Islamabad: Rs5 billion.
- Development Projects in the Poorest Districts: Rs7 billion.
- Karakoram Highway Project: Rs6 billion.
- Digitalisation of the National Economy: Rs4 billion.
- Establishment of Danish Schools: Rs2 billion for a Danish school in Islamabad and Rs5 billion for seven Danish schools in Azad Kashmir and Gilgit-Baltistan.
Focus Areas:
The government will prioritize the completion of ongoing development projects and focus on five key areas under the 5-E framework:
- Export
- Equity
- Empowerment
- Environment
- Energy
Economic Revival Efforts:
Finance Minister Aurangzeb praised Prime Minister Shehbaz Sharif and his team for their efforts over the past year to revive the economy, expressing optimism that Pakistan will soon be on the path of inclusive and sustainable economic growth.