Imported make-up, food, shampoo and perfumes are set to become costly in the budget as according to the government the high taxes on imported food items would only affect the rich.
In the budget for the next financial year, sales tax on online purchases, regulatory duty on imports of mobile phones and tires have been increased.
additional customs duty and regulatory duty on 164 textile-related tariff lines have been abolished while 7.5 per cent taxable income has to be paid.
Every citizen household will be able to get an interest free loan of Rs 5 lakh for business while 2 million cheap loans will be given under the low-income housing scheme.
Note that Finance Minister Shaukat Tarin presented the budget in the National Assembly and his speech mentioned the proposal to impose federal excise duty on the use of internet data.
However, after the budget meeting, Federal Minister for Energy Hamad Azhar, referring to the imposition of duty on the use of Internet data in the federal budget, said that the proposal has not been approved by the Prime Minister and the Cabinet.
After Finance Minister Shaukat Tarin’s budget speech in the National Assembly on Friday, there was a strong reaction from many quarters to the proposed duty on internet data.
Federal Minister for Energy Hamad Azhar tweeted that the Prime Minister and Cabinet have not approved the imposition of federal excise duty on the Internet and it will not be included in the Finance Bill (Budget) to be tabled in the National Assembly. ‘
The question now is whether the government can introduce a clause rejected by the federal cabinet in the House as part of the Finance Bill.
In this regard, former Speaker National Assembly and Federal Minister Dr Fehmida Mirza while talking to Urdu News said that the difference between normal legislation and finance bill is that the rest of the government bills are presented in the cabinet meeting.
The Cabinet proposes and returns it to the concerned ministry or approves it with the condition of including the amendments before presenting them in the National Assembly.
“However, if the Finance Bill is introduced in the Cabinet shortly before the National Assembly convenes, it will not be possible to include the proposed amendments in it immediately.”
“The passage of the Finance Bill is a lengthy process that requires amendments from government members, the opposition and the Senate itself, and many times those proposals are workable for the government and are presented on the first day of the budget,” he said.
The finance bill has changed significantly since its passage. Therefore, the Cabinet also decided today that the provision on federal excise duty on the Internet will be removed from the final Finance Bill.
He said that the responsible minister of the government has informed after pointing out that the said proposal will not be a part of the finance bill, so it should be understood that the amendment has been made automatically.
The federal government in Budget 2021-21 has broadcasted an Rs2.1 trillion disbursement for the Public Sector Development Programme (PSDP), with Rs900 billion set aside for federal and Rs1.235 trillion for provincial development programs.
- Aviation Division – Rs3,558.2 million
- Board of Investment – Rs80 million
- Cabinet Division – Rs46,155 million
- Climate Change Division – Rs14,327 million
- Commerce Division – Rs1,613 million
- Communication Division (other than NHA) – Rs451.32 million
- Defense Division – Rs1,977.63 million
- Defence Production Division – Rs1,745 million
- Establishment Division – Rs800 million
- Federal Education and Professional Training Division – Rs9,700 million
- Higher Education Commission (HEC) – Rs42,450 million
- Finance Division – Rs123,131 million
- Housing and Working Division – Rs24,211.5 million
- Human Rights Division – Rs279 million
- Industries and Production Division – Rs2,916 million
- Information and Broadcasting Division – Rs1,899 million
- Information Technology and Telecom Division -Rs9,361.05
- Inter-Provincial Coordination Division – Rs3,734.73 million
- Interior Division – Rs2,1048.71 million
- Kashmir Affairs and Gilgit Baltistan Division – Rs69,959.9 million
- Law and Justice Division – Rs6,027.35 million
- Maritime Affairs Division – Rs4,461 million
- Narcotics Control Division – Rs489.39 million
- National Food Security and Research Division – Rs12,017 million
- National Health Services, Regulation and Coordination Division – Rs21,722 million
- National Culture and Heritage Division – Rs125.9 million
- Pakistan Atomic Energy Commission – Rs27,000 million
- Pakistan Nuclear Regulatory Authority – Rs200 million
- Petroleum Division – Rs2,349.5 million
- Planning, Development and Special Initiatives Division – Rs19,245.5 million
- Poverty Alleviation and Social Safety Division – Rs589.9 million
- Railway Division – Rs30,025.6 million
- Religious Affairs and Interfaith Harmony Division – Rs493 million
- Revenue Division – Rs4,025.06 million
- Science and Technology Research Division – Rs8,341 million
- SUPARCO- Rs7,368.86 million
- Water Resource Division – Rs103,472.69 million
- National Highway Authority – Rs113,750 million
- NTDC/PEPCO – Rs69,485 million
- COVID Responsive and Other Natural Calamities Programme – Rs5000 million
- Viability Gap Fund (VGF) – Rs61,500 million
- SDGs supplementary fund – Rs 22,000 million
The federal government so far in Budget 2021-21 has announced many development schemes and programs for all the sectors in Pakistan.