Budget 2020: Punjab Sales Tax expected to be slashed by 5 %

As Punjab Government is going to present the budget of Rs2.222 trillion today, the provincial sales tax is expected to be slashed by 5 percent for the majority of services.

According to details, the government is going to allow submission of the property tax in two installments due to the novel coronavirus pandemic.

Punjab will get almost Rs 1.439 trillion from the federal government under National Finance Commission (NFC) transfers.

Further, the government is expecting almost Rs 132 billion funds from donor-funded projects in the shape of foreign support.

The economic impact of the COVID-19 is going to be exposed in the forthcoming fiscal year so the government is fixing downwards revenue targets for the fiscal year 2020-21.

The government earmarked Rs 10 billion for new 8,519 recruitment in the health department, Rs 13 billion block allocation for COVID-19 specific on the current side, Rs 30 billion economic stimulus package for SME sector and Rs 15 billion tax relief package and Rs35 billion for the existing workforce of the health department under COVID-19 initiatives.

Moreover, the government has designated more than 55% of its budget for the four departments, including Rs 323 billion for school education, Rs 130 billion for specialized health, Rs123.5 billion for primary health, Rs 132.8 billion for the police department.

The overall provincial tax revenue target is being fixed at Rs 230 billion from last year Rs 295 billion.

The current expenditure is increased to Rs 1.336 trillion from Rs 1.298 trillion, with an increase in salary expenditures to Rs 355.5 billion from Rs 37.6 billion, pension Rs 250.7 billion, PFC Rs 448.5 billion, service delivery expenditures Rs239.7 billion, current capital expenditures Rs 129.39 billion and Account-II (food account used for wheat trade) estimated at Rs 331 billion.

Further, the government is targeting an expense of Rs 38.1 billion for the procurement of drugs and medicines which is showing an increase of 57% from the previous year of Rs 24.2 billion