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ISLAMABAD: Finance Minister Ishaq Dar will present the budget for the upcoming financial year 2023-24 today.
The federal budget for the next financial year has been prepared with a financial deficit of 7.7 percent of the GDP, a budget of more than Rs6,500 billion will be presented for the next financial year, an increase of 20 percent in salaries and 15 percent in pensions. It is suggested that Rs430 billion will be allocated for the Benazir Income Support Program, while new taxes of more than Rs700 billion will be imposed in the budget, and the levy rate on petroleum products is likely to be increased further.
According to the sources of the Ministry of Finance, the next budget has been prepared with a financial deficit of 7.7 percent of the GDP, the country’s income in the next financial year is estimated at Rs9200 billion, and the FBR tax revenue and non-tax revenue target are 2800 billion rupees. More than 55 percent will be transferred to the provinces.
The federal government will spend Rs950 billion on development projects in the next financial year, 200 billion projects will be started under public-private partnership, and the provinces will spend Rs1559 billion on development projects, FBR property sector, new on the profits of companies. The budget will impose a standard rate of 18 percent sales tax while luxury items will be levied at 25 percent sales tax.
Read more: Govt increases tax on mobile recharge
In the federal budget, 1800 billion rupees have been allocated for defense, 13 billion for the Ministry of Health, and more than Rs59 billion will be allocated for higher education. While the budget has not imposed sales tax on solar panels and solar energy.
On the other hand, new taxes of more than 700 billion will be imposed in the next financial year’s budget. In consultation with the IMF, a target of 9200 billion has been set for the FBR for the next financial year.
FBR will collect Rs1900 billion more in the next financial year compared to the current financial year, it has been decided to tax more than 30 percent on mutual funds, and real investment trusts for non-filers.
A finance bill has been prepared according to which the budget will increase the withholding tax on imported luxury goods, it has been decided to double the withholding tax for non-filers doing property sector transactions.
Similarly, for non-filers, the withholding tax on the purchase and sale of prize bonds will be increased, and the withholding tax on the purchase and sale of plots will be doubled for non-filers.
