Budget 2020-21 is going to be announced soon by the Federal government in Pakistan. Pakistan Tehrik-e-Insaf-led federal government had presented its first annual budget in June 2019. Federal Minister for Revenue Hammad Azhar had presented the new budget in the parliament. It is necessary to have a glimpse of the budget 2019-20.
Budget 2019-20 had the following key features.
Taxes including a levy on imported phones were decreased after the budget was approved.
Restriction on non-filers lifted that restricted them from purchasing a property that costs more than Rs. 5 million.
Minimum salaries were increased from Rs. 15,000 to Rs. 17,500.
Sales tax on powdered milk had been decreased to 10 percent and food supplied by restaurants decreased from 17.5% to just 7.5%.
Tax on tires, tubes, and several auto parts had been removed.
Moreover, three percent value-added tax (VAT) on all petroleum products had been removed. In addition to this, the duty on LNG (liquefied natural gas) had been decreased by the government as well.
The government had also provided exemption on customs duty for more than 1600 raw materials for industries including, pharmaceuticals, paper industry, refineries, and textiles.
Duties on raw material import of pharmaceuticals. The exemption was proposed on customs duty on 18 medicinal imports.
Almost complete exemption on duty on materials imported for paper industries.
The government had proposed a significant decrease in customs duty for machinery parts and accessories used in the textile sector.
The government had proposed 2.5% of the car’s value as FED for vehicles that have 0-1000cc engine capacity. This had been done to decrease the FED on vehicles with higher engine capacities.
On the other hand, the government had increased the FED of 14% on beverages. In addition to this, the tax on cigarettes was also increased.
Taxes on CNG dealers had been increased as well. Excise duty on cement is also being increased from Rs.1.5 per kg to Rs. 2 per kg.
A tax of 1 percent was proposed by the government on gold and silver. Gold used in jewelry will be taxed 1.5 percent and diamonds will be taxed at 0.5 percent.
Above all, the government had proposed a 15% sales tax on finished textile goods.
What will be the key features of budget 2020-21? Visit BOL News fore more updates.