Govt presents supplementary budgetary proposals for current financial year
ISLAMABAD (92 News) – The government on Tuesday (today) presented supplementary budgetary proposals for the current financial year aimed at generating additional revenue of 183 billion rupees.
Presenting amendments to the Finance Act 2018 in the National Assembly, Minister for Finance Asad Umar said the new proposals are based on the philosophy of putting no additional burden on the poor and provide relief for export oriented industries.
Prime Minister Imran Khan, ministers, and lawmakers from various political parties attended the NA session today.
Explaining the plan, the Minister said 92 billion rupees would be collected through use of modern technology to detect tax evasion.
Measures proposed for collection of 91 billion rupees include increase in tax on banking transactions other than cash from the existing 0.4 to 0.6 percent, increased tax on tobacco, doubling of Federal Excise Duty on vehicles of 1800 CC and above and increase of taxes on some luxury items and pricey mobile phone sets.
Asad Umar said there would be no reduction in the exemption limit for income tax.
Similarly, existing tax rate on income slab between 1.2 to 2.4 million rupees would also be retained. However, income tax rate for higher income slabs would be 25 percent and 29 percent.
Asad Umar said that the government has decided to withdraw tax exemption for the prime minister, ministers and governors in respect of accommodation, conveyance and sumptuary allowance.
The minister also announced some relief measures for different segments of society. Petroleum Development Levy worth 100 billion rupees as envisaged in the current budget has been withdrawn for the benefit of the people.
Regulatory duty imposed by the previous government in the budget on 82 tariff lines has been abolished for raw material meant for export related industries. This would involve relief of five billion rupee for the industry.
It has been decided to launch Insaf Health Card scheme in the Federal Territory and formerly FATA on the pattern of KPK.
Asad Umar said the PM has given directions for release of 4.5 billion rupees immediately for restart of construction work on 8276 houses for workers. Approval has also been given for construction of ten thousand additional houses in the second phase.
The development budget for the current financial year is proposed to be at 725 billion rupees, which would be ten percent more than 661 billion rupees of the last financial year.
The finance minister, however, made it clear that development budget for CPEC projects and dams would not be reduced and instead, additional resources would be mobilized for construction of water reservoirs.
The minister said foreign debts have also surged to 95 billion dollar from 60 billion dollar.
Meanwhile, the house would start debate on new budgetary proposals from Monday next. Finance Minister Asad Umar addresses news conference
Addressing a news conference after presenting supplementary budget in the National Assembly, Finance Minister Asad Umar said the measures announced today (Tuesday) were not the reforms programme of the government but immediate necessary steps to meet the current economic crisis.
Asad Umar said reforms in the FBR will be introduced within a month. Minister of State Muhammad Hammad Azhar said that regulatory duty on various luxury items has been enhanced. He said taxes on cigarette will take up the price of the item up to ten rupees per packet.
He said the revenue target for the current fiscal year has been set at 4390 billion rupees.