ISLAMABAD – The Shehbaz Sharif-led coalition government is unveiling the federal budget for the next fiscal year 2022-23 in the National Assembly with an outlay of Rs9.5 trillion.
Federal Minister for Finance and Revenue Miftah Ismail, while presenting the budget proposals, berated the PTI-led government for its poor performance, saying that the current budget focuses on “sustainable and inclusive growth.”
The finance minister said that Pakistan had been facing the issue of skyrocketing inflation due to the incompetency of the PTI-led government.
Miftah assured that the new coalition government will pull Pakistan out of the economic crisis.
Imposition of taxes
Miftah said the income tax threshold (per year) increased from Rs600,000 to Rs1.2 million. This proposal effectively means there will be no income tax on individuals earning up to Rs100,000 a month,” he added.
The finance minister said that the government had suggested increasing the tax on banking companies to 39%, including 42% super tax, while the foreign nationals doing business in Pakistan will have to pay taxes.
He also proposed to increase the tax rate on non-filers from 100% to 200% for vehicles having horsepower greater than 1,600cc.
The government has also proposed an advance tax on 1,600 cars and a 2% additional tax on electronic engine cars, he said, adding that it has also been proposed to revise the tax slab for salaried people and increased the cap to Rs100,000.
Miftah said the tax imposed on Behbood Saving Certificate and Pensioners Benefit Account has been proposed to be dropped to 5% from 10%.
The tax on small-scale retailers has been proposed to be fixed, which will range from Rs3,000-10,000 and will be collected through their electricity bills, Miftah said.
It has also been suggested that the filers who send money abroad through credit, debit, or prepaid cards will have to pay 1% withholding tax, while for a similar transaction, non-filers will be charged 2% tax, he said.
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