ISLAMABAD: On Thursday, Finance Minister Shaukat Tarin introduced the mini-budget in National Assembly’s session. The minister also presented the State Bank of Pakistan amendment bill.
During the session, the finance minister proposed the imposition of Rs375 billion tax in the form of sales tax, income tax, and federal excise laws amendments. Rs343 billion sales tax, of the total Rs375 billion, make up for sales tax exemptions that will be withdrawn.
Income tax on phone calls will be raised by 50 per cent. Advance income tax for the cars’ registration will be hiked by 100 per cent. Foreign produced dramas will bear over Rs3 million tax. An estimated Rs25 billion is expected to be generated through federal excise duty on imported and locally manufactured cars rating 1,000cc or greater.
Sales tax exemption of Rs160 billion will be withdrawn on pharmaceutical items, Rs112 billion on machinery, Rs71 billion on domestic items. However, Tarin said that only Rs2 billion withdrawn exemptions will affect people. He added that tax exemptions of pharmaceutical and machinery items are refundable on conditions.
The finance supplementary and SBP amendment bills are in line to revive with the IMF conditions for the revival of $6 billion extended fund facility.