Budget 2021-22: What are the government’s revised plans

Finance Minister Shaukat Tarin delivers the final session of debate on Budget 2021-22 in the National Assembly.

House considers recommendations made by Senate for incorporation to Budget 2021-22.

Tarin emphasized “comprehensive and sustainable development this time around” during his budget speech.

“We will give interest-free loans up to Rs300, 000 for agriculture. An interest-free loan of up to Rs 500,000 will be given to an individual for doing business in urban areas,” he announced.

The finance minister stated the tax on gold and silver to be reduced from 17% to 1-3%. But the 17% tax on the value addition of gold will remain the same.

No tax has been charged on wheat or its byproducts, while the tax on 1,000 cc cars will be concentrated and the tax on dairy products and medical devices is being reserved.

“We are bringing the idea of agri malls to get rid of the middle man’s role,” stated Tarin.

While explaining that the network of agri malls will be spread across the country and it will eventually get rid of the middle man’s 400-500% profit margin on almost all the agriculture products.

Finance Minister Shaukat Tarin said e-commerce tax is being ended and listed e-commerce companies have to pay zero tax.

“We will continue to provide incentives for textiles. We will introduce a ‘my car’ scheme. All the demands of the IT sector have been met as well,” he said.

Under the final budget plans by the government, every citizen can get a housing loan from banks.

Low-income households, meanwhile, will be given a beleaguered subsidy for electricity and wheat.

He also shared that PM Khan has deteriorated to increase the electricity tariff, while Rs260 billion has been set aside for the Ehsaas program this year.

The government has also prearranged $1.1 billion for coronavirus vaccines and set aside Rs5 billion to introduce an electronic voting system.

Tarin further stated that previous governments did not set money apart in the budget for a dam project as they thought it would not be finished in their tenancy.

“Imran Khan has set aside money in the budget for a dam project,” he said.

The minister pointed that Pakistan has become a net food distributor and the present government will focus on the agriculture sector to achieve self-sufficiency.

He said that a plan has been articulated in collaboration with the provinces to uplift this sector.

He said that cold storage and warehouses will also be established.

Furthermore, for the industrial sector, he said inducements of Rs40 billion will be given with an aim to increase keenness in this important sector of the economy.

He said that in Budget 2021-22 tax reprieve has been given to the SMEs sector and loans of Rs100 billion rupees will be given to them on a markup of 9%.