Cabinet to approve mini-budget today

Tax

ISLAMABAD: The mini-budget will be presented to the cabinet on Thursday for the approval of implementing 17 per cent taxes on 144 items.

A meeting would be called by noon by Prime Minister Imran Khan seeking approval for the mini-budget by the ministers. The aim of the budget is to generate a revenue of Rs360 billion to meet the demands of the International Monetary Fund’s (IMF) for the loan. After a nod from the cabinet, the budget will be presented in the National Assembly by Finance Minister Shaukat Tarin.

According to sources, the listed 144 goods – that will bear 17pc tax – are either free from the General Sales Tax (GST) or hold a tax rate of 5-12pc.

Since some items will be taxed for the first time, their impact on the revenue is still unknown, which is why the generated revenue is anticipated to be greater than the estimated value of Rs352 billion. Mobile phone calls are also expected to generate a revenue of around Rs7 billion after a 10-15 pc increase in the tax rate.

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