Reported by: The Voice of UK (Islamabad) Pakistan Minister of State for Revenue
Hammad Azhar said “Pakistan s total debt has reach Rs31 trillion. We are deeply indebted thanks to high-interest loans. Foreign exchange reserves had dropped below $10 billion. The current account deficit had reached a historic peak of $20bn, while the trade deficit had reached $32bn. The fiscal deficit was more than Rs2.26tr.”The government s planned initiatives for employment and skill development during the next year will help alleviate unemployment in the country. The plan focuses to provide and promote technical and vocational training by extending geographical access through the public private partnership in market demand trades.Pakistan Minister of State for Revenue Hammad Azhar has unveiled the first budget for fiscal year 2019-20 20of the Pakistan Tehreek-e-Insaf -led federal government with an outlay of Rs7.02 trillion, in the Pakistan National Assembly in Islamabad .
The minister said current account deficit will be reduced to 6.5pc in FY19-20 and exports will be boosted through a revised duty structure. “Power and gas will be cheapened and Free Trade Agreements will be re-evaluated,” he said and added Pakistan will be made a part of the international value chain.
Revenue Minister Hammad Azhar said we borrowed a total of $9.2 billion from China, Kingdom of Saudi Arabia, and the United Arab Emirates, adding that the government empowered State Bank of Pakistan (SBP).
“A total of 11 per cent tax to GDP ratio currently, was the lowest in the region,” he said and added there were only 50 percent of SECP registered companies paying tax. “We will have to change this culture.”said it is time to lift the people who have been left behind and recalled the economic situation the government has faced since coming into power.
Pakistan Budget 2019 to 2020
Minimum taxable income for salaried class to be Rs0.6mn per annum
Minimum taxable income for salaried class to be Rs0.4mn p.a.
Non-filers no more restricted from purchasing property
Federal Excise Duty of Rs5,200 on every 10,000 cigarettes to be imposed
Property can t be registered in the name of nonfilers.
Those who will provide jobs to new graduates will be given tax rebates
Rs1.2mn was legal limit for income tax exemption — it will be reduced to Rs0.6mn for salaried persons and Rs0.4mn for others
Tax on marble to be increased to 17pc
Tax on services to be introduced
Tax on sugary beverages to be increased to 13pc
Edible oil taxation to Rs40 per kg; FED on it to be increased
Aviation Division to get Rs 1266.5 million for fiscal year 2019-20
Rs100 million earmarked for Board of Investment
Rs 39.986 billion set aside for Cabinet Division
Climate Change Division to get Rs 7579.2 million
Rs100 million earmarked for Commerce Division
Rs 248.3 million fixed for Communication Division (other than NHA)
Rs24.457 billion for Pakistan Atomic Energy Commission
Rs 301.47 million for Pakistan Nuclear Regulatory Authority
Rs 581.812 million set aside for Petroleum Division
Rs 7,963.517 million for Planning, Development and Reform Division
Rs 200 million for Poverty Allevation and Social Safety Division
Rs16 billion for Railways Division
Rs1000 million for Religious Affairs and Interfaith Harmony Division
Rs 1,818.23 million for Revenue Division
Science and Technological Research Division to get Rs 7,407.361 million
Medicinal ingredients will be given a 3pc import duty exemption
Duty on different types of paper to be reduced from 20pc to 16pc
2.5 percent Federal Excise Duty would be applicable on vehciles below 1000cc
Cement duty has been increased from Rs1.5 to Rs2
Inflation targets set at between 5 and 7 percent
3 percent tax on import of mobile phones to be eliminated
Textile machinery and parts will be exempt from duties.
Steel duties will also be reduced to 5pc
A ration card scheme is being introduced. 60,000 women will be given access to mobile phones.
Rs1,800 billion kept for development programmes. Rs950 billion kept for federal development programme
Civil budget decreased from Rs460 billion to Rs437 billion.
Defence budget will remain Rs1.150 trillion
Tax net will be increased as only 20,00,000 people in Pakistan file tax returns of them 600,000 are employees.
Rs45.5 billion have been allocated for Karachi s development program
Rs40 billion would be given in subsidy for gas and electricity
Interest free loans would be provided to 80,000 deserving people every month
Defence budget will remain Rs1.150 trillion
Rs1,800 billion kept for PSDP, while Rs950 billion kept for federal PSDP
BISP stipend has been increased from Rs5,000 to Rs5,500
Rs421 billion have been allocated for pension
Rs12 billion have been allocated for agricultural program
10 percent ad hoc relief for armed forces employees
Pensions increased by 10 percent
Employees from grad 1 to 16 have been given 10 percent increase in salaries
Employees from grad 17 to 20 have been given 5 percent increase in salaries
No increase in salaries for government employees from grade 21 to 22
Rs2891 billion has been allocated to pay the interests
Rs70 billion has been allocated for water reservoirs
Minimum wage set at Rs17,500
Ministers agree to voluntary 10 percent cut in salaries
The National Development Programme will have a total size of Rs1,800bn
Of this, Rs950bn will be spent by federal
Rs70bn on dam projects; Rs15bn and 20bn respectively for Bhasha and Mohmand dam land acquisition
Rs55bn for Dasu hydro power project
Balochistan development package to get Rs10.4bn and Rs30bn for water projects
Rs 63.5 billion allocated for special areas including merged districts of Khyber Pakhtunkhwa, Azad Jammu and Kashmir and Gilgit-Baltistan.
Rs75 billion have been allocated for equitable Regional Development in order to accelerate development of less developed areas and 22 billion rupees are set aside for 10 year development plan of merged districts.
Rs128 million have been allocated for conservation and promotion of rich and diverse cultural heritage of Pakistan
Rs28,646 million have been allocated for Higher Education Commission
Rs912 billion have been allocated for provincial Annual Development Plans.
General sales tax on goods will remain unchanged and will stand at 17 percent.
Food items supplied to bakeries and restaurants will be taxed at 4.5 pc
Budget deficit to be Rs3,560 billion
Tax revenue target set at Rs5,822bn
Non-tax revenue target set at Rs894bn
Sales tax to be increased on diamond, gold and silver jewellery
Seven percent Federal Excise Duty would be applicable on vehciles over 2000cc
Five percent Federal Excise Duty would be applicable on 1000cc vehciles