According to details, the government of Pakistan yesterday announced the budget for the year 2022-23. Finance Minister Dr. Muftah Ismail along with other senior representatives of Pakistan formally announced the federal budget in the Parliament House. The Prime Minister of Pakistan Shahbaz Sharif also attended the meeting. The total volume of the federal budget this year is Rs. 9502 billion. In Parliament House, Finance Minister Dr. Muftah Ismail highlighted some of the features being discussed in the meeting. The details are as follows.
Key Features of Federal Budget: –
A look at the features of the federal budget under discussion in Parliament House. The details are as follows.
- Rs 17 billion for subsidy on utility stores for FY23
- 15% increase in salaries of government employees
- FED on balance recharge increased from 16% to 19.5%.
- Import levy on mobile phones increased.
- The government has imposed a tax on software exports and all other IT exports.
- Rs 17 billion has been allocated for the information and technology sector.
- Advance tax for non-filers on purchase of luxury cars has been increased from 100% to 200%.
- Capital gains tax is levied on the sale of cars worth more than Rs. 5 million
- The minimum income tax pay increases from 1.6 million to 1.2 million.
- Fixed income and sales tax will be collected from small retailers. This tax will be collected through electricity bills. Amount Rs. 3-10K
- Initial 100% depreciation is allowed for industrial units as against 50%.
- Properties valued at Rs. 25 million will have to pay 1% income tax on rental income, which is equal to 5% of the fair amount of property. This tax does not apply to private residences.
- 15% capital gains tax is levied on immovable property sold under one year holding period.
- Advance tax for filers for property transactions has been increased from 1% to 2%. And for non-filers it has been increased to 5%.
- The Youth Employment Policy Program will start with 25% female quota for new graduates of Pakistan.
- Students will be given free laptops on merit.
- Rs 51 billion has been allocated for higher education projects.
- Filmmakers were given tax breaks for the next five years. Export rebate will be given on export of films and dramas for next 10 years.
- The current tax on the banking sector has been raised from 39% to 42%.
- 1% and 2% advance WHT will be charged for filers and non-filers on payments made overseas through debit, credit and prepaid cards.
- Rs 10 billion has been allocated for the improvement of climate projects.
- 5% sales tax on tractors abolished
- Sales tax has been imposed on imports of sunflower, canola, wheat and seeds.