No new taxes imposed in the budget of FY 2020-21

Friday, Jun 12th: The Pakistan Tehreek-e-Insaf (PTI) government has presented a budget of Rs. 70.13 trillion in which no new taxes have been announced. The budget was presented by Minister for Industries and Production Hamad Azhar in a meeting of the National Assembly chaired by Speaker Asad Qaiser.

Introducing the budget proposals for the financial year 2020-2021 in the National Assembly, Minister of State for Industry Hamad Azhar said that it was an honor and pleasure for him to present the second annual budget of the PTI government.

“Under the leadership of Prime Minister Imran Khan, a new era began in August 2018. We started with a difficult journey and began our efforts to revive the economy in order to bring about economic stability and growth in the medium term,” he said. However, the purpose of our economic policy is to fulfill the promise we have made to the people to build a new Pakistan and with each passing year we are getting closer to making this dream a reality.

“Over the last two years, our guiding principles have been to eradicate corruption, bring more transparency in government institutions, maintain accountability and implement merit in decision-making at all levels,” he said.

“We have full confidence in the capabilities of our people and their cooperation is desperately needed to achieve the desired goals. The PTI is committed to the principle of providing social justice, improving the conditions of the weaker sections of society and is determined to work for the downtrodden.

He said that before presenting the budget for the next financial year, I would like to tell the House what we inherited from the previous government. When our government came in 2018, we inherited an economic crisis. It had doubled to a record high of Rs 31,000 billion in a year, on which interest payments had become unbearable. The current account deficit had reached Rs 20 billion while the trade deficit had reached Rs 32 billion. There was no increase and the dollar was artificially kept stable, which led to a decline in exports and an increase in imports.

He said that a total of Rs 69 billion for water resources, Rs 12 billion for food ministry, Rs 6 billion for climate change measures, Rs 20 billion for science and technology, Rs 118 billion for national highways. Rs 20 billion has been allocated for the health sector and Rs 30 billion for education. #It has been proposed to increase the limit of purchase without ID card to Rs. One lakh.

The sales tax rate from general retailers is proposed to be 12%. The duty on imported cigarettes and tobacco has been increased from 65% to 100%. It is proposed to increase the limit of purchase without identity card from Rs 50,000 to Rs 100,000 while duty on import of Corona and cancer diagnostic equipment has been waived. The tax rate on caffeinated beverages has been increased from 13% to 25% while the tax rate on double cabin vehicles has also been increased.

It is proposed to allocate a total of Rs. 14 billion for the Ministry of Health. In the federal budget for the next financial year, it has been proposed to allocate a total of Rs. 14 billion for the Ministry of Health. Plans to build 200-bed Accident and Emergency Center in PIMS, Allergy Center in Quetta and 200-bed Hospital in Islamabad, Rs. 4 billion for PM’s Health Facility Program, Rs. It has been proposed to allocate Rs. 2.2 billion for population welfare, hepatitis and TB programs in Azad Kashmir and Gilgit-Baltistan.

The proposed development budget for the Higher Education Commission is Rs. 29.47 billion

In the new budget, it has been proposed to allocate more than Rs. 24 billion for 94 ongoing projects. In addition, 23 new projects worth Rs. 5 billion for HEC, Pak-UK Knowledge Gateway project worth Rs. 15.8 crore, Smart Universities Phase-I for Rs. And a plan to set up a university in North Waziristan has also been included in the budget. It is proposed to allocate funds of Rs. 75 lakh in the budget for the feasibility study of the project while plans to set up universities in Chitral and Turbat have also been included in the new budget.

The federal budget has estimated the collection of Rs 5,464 through various taxes in the next financial year. The target is to collect Rs 4,963 billion from FBR taxes while it is estimated to collect Rs 2,043 billion from direct taxes. More than Rs 2.3 billion in income tax, more than Rs 3 billion in taxes from the Workers Welfare Fund, more than Rs 2,920 billion in direct taxes, Rs 640 billion in customs duties and Rs 640 billion in sales tax. I have estimated Rs. 1,919 billion.

It is estimated that Rs 361 billion will be collected from federal excise, Rs 5.80 billion from mobile handset levy, Rs 15 billion from gas infrastructure development cess and Rs 10 billion from natural gas development surcharge while petroleum levy will be collected. Four hundred and fifty billion rupees will be received. Advance tax on auto rickshaws, motorcycle rickshaws and 200cc motorcycles abolished

Federal Minister Hamad Azhar said that advance tax on auto rickshaws, motorcycle rickshaws and motorcycles up to 200cc has been abolished while more than 100% tax has been imposed on educational institutions which charge heavy fees. Educational institutions that charge an annual fee of more than Rs 200,000 will have to pay more than 100% tax. He said that the requirements of FATF were also taken into account in the budget. No tax will be levied on external revenue in a year.

The key points of the federal budget 21-2020 are as follows

• FBR proposes to set tax collection target at Rs 4,963 billion.
• Proposal to allocate Rs. 476 billion in civil expenditure.
• Proposal to allocate Rs. 208 billion for Ehsas program.
• Proposal to allocate Rs. 30 billion for New Pakistan Housing.
• The federal development budget for the next financial year is proposed to be Rs 650 billion.
• 890 billion in other grants.
• Proposal to provide Rs. 85 billion in grants to the provinces.
• Proposal to keep Rs 470 billion in pension.
• Proposal to keep Rs. 210 billion in terms of subsidies.
• Proposal to set federal budget deficit at Rs. 3,437 billion.
• Total budget deficit proposed at Rs 3,195 billion.
• Expenditure is estimated at Rs. 7,137 billion.
• The federal government’s net revenue is estimated at Rs 3,700 billion.
• It is proposed to allocate Rs 2,874 billion for the provinces under the NFC award.
• Proposed non-tax revenue target of Rs. 1610 billion.
• Proposal to keep defense budget at Rs. 1290 billion.

National Economic Survey Report

Earlier, a special chapter on coronavirus was included in the National Economic Survey Report. According to the survey, 56.6% of the country’s population has become socially and economically insecure due to the epidemic, while the country’s female labor force will be reduced.

According to the survey report, women and children are most likely to be affected. The virus is expected to put 27 million people out of work.

The partial lockdown is expected to put 15.5 million people out of work in the agricultural and non-agricultural sectors. In the event of a complete lockdown, 19.1 million people could be unemployed.

More people are expected to be unemployed in wholesale and retail trade. Overseas Pakistanis may be more affected by the virus than the unemployment of Pakistanis due to the closure of schools and colleges are feared to be unemployed.

The corona virus will reduce the female labor force in the country. The FBR’s tax collections were hit. The budget deficit is projected to reach 9.4 percent while the country’s exports have been affected.

In one year, the number of buffaloes increased to 1.2 million, the number of buffaloes increased from 40 million to 41.2 million. In one year, the number of sheep increased by 300,000. The number of sheep increased from 39 million to 31 million.

The number of goats increased by 2.1 million, the number of goats increased from 76.1 million to 78.2 million, the number of horses, camels and mules did not increase.

The number of horses is 400,000 and the number of mules is 200,000. The number of camels in the country is 1.1 million. The number of cattle has increased by 1.8 million. The number of cattle has increased from 47.8 million to 49.6 million. In one year, the number of poultry increased by 122 million.

The number of poultry increased from 1.32 billion to 1.44 billion, while the number of donkeys increased by 100,000. The number of donkeys increased from 5.4 million to 5.5 million.

The report further states that before the Corona virus, the economic growth rate was estimated at 3.3%, 42 million students going to educational institutions were directly affected.

Growth in major industrial sectors slowed to 5.4 per cent, growth in the minerals sector was negative 8.8 per cent, July-April tax revenue stood at Rs 3,300 billion, July-April tax revenue grew by 10.8 per cent, non-tax revenue rose from July to March 30. Non-tax revenue stood at Rs 1,095 billion from July to March.

Learn more: Shahbaz Sharif rejected the federal budget calling it a disaster