ISLAMABAD: Finance Minister Asad Umar presented the Pakistan Tehreek-e-Insaf (PTI) government’s amendments to federal budget 2018-19 in National Assembly session on Tuesday.
During his speech, Finance Minister Asad Umar said the previous PML-N government presented its sixth fiscal budget, which was in sharp contrast to ground realities. Consequently, he said, the current government felt the need to present a supplementary budget.
SALIENT FEATURES
Withdrawal of increase petroleum development levy
Sehat Ka Insaf programme for FATA
10 percent increase in pensions
Increase of taxation on tobacco products
Increase of Federal Excise Duty on luxury cars
Increase of duty on expensive smartphones
No decrease in budget allocated for CPEC projects.
Development projects worth Rs50billion in Karachi through public-private partnership
No tax on annual income till Rs1,200, 000
End of tax rebate on allowances for PM and Ministers
Asad Umar announced that contrary to media reports, the government is not burdening the tax payers or low income class and the increase in income tax will only affect the upper class.
“The previous government announced income tax relief for people belonging to all social stratas but we have decided to tax the upper class but the lower income groups will still be relieved of the tax as there is no taxation until you earn more than Rs1,200,000 a month,” said Umar.
Asad Umar said that the government is removing the petroleum levy imposed by the previous government while increasing the duty on expensive smartphones and luxury cars.
“I was astonished to learn that a cigarette packet which costs 50 to 60 dollars abroad is being sold for sometimes less than a dollar in Pakistan. Why we are selling this poison so cheap, so we have decided to increase taxation on all tobacco products,” said the minister.
He maintained that smartphones, only the expensive ones, will be taxed while government is increasing the federal excise duty on luxury cars (more than 1800cc) by 20 per-cent.
In what he termed a revolutionary measure, the finance minister announced ending the tax rebate for ministers including the prime minister and governors of all four provinces.
Development budget
Presenting the development budget, the minister announced that the government plans to build Diamer Bhasha and Mohmand dam in record time while Rs50billion will be spent on development projects in Karachi.
Asad Umar also made it clear that, contrary to some media reports, the government has not decreased the development budget allocated for projects related to China Pakistan Economic Corridor (CPEC).
More to follow…
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