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Federal Budget 2019-20 Pakistan Tehreek-e-Insaf government presented

Federal Budget 2019-20 Pakistan Tehreek-e-Insaf government presented

The Pakistan Tehreek-e-Insaf government presented its first Federal Budget for the fiscal year 2019-20 on Tuesday.

Minister for Revenue, Hammad Azhar, presented the new budget in the parliament. Understanding technical terms and long speeches aren’t for everyone. Thus, we’ve made a feasible list for you to understand the important changes. Here are x extremely important things in the new budget that every Pakistani must know about.

Federal Budget 2019-20 Pakistan Tehreek-e-Insaf government presented

 

Total budget: 7022 billion rupees

1. Government servants from grade 1-16 will see a 10% increase in their salaries. 

2. Government servants from grade 17-20 will see a 5% increase in their salaries. 

3. Civil government’s budget has been cut down from 460 billion rupees to 437 billion.

4. Tax to GDP ration has been set at 12.6%.

5. The Defense budget will be around 1150 billion rupees. 

6. Prime Minister and his Cabinet have reduced their salaries by 10%.

7. The minimum wage of labor in Pakistan has been increased to Rs. 17,500.

8. Sin Tax (Gunah Tax) on cigarettes, every box of 20 cigarettes’ price increase by Rs. 10.

9. FED on Cars – which means more tax on buying vehicles, depending on their CC.

10. Except for eggs and chicken, all other food items have been made MORE expensive than before!

11. Prices of Gas, Petrol, and Electricity have also been increased! 

12. There ‘might’ be a decrease in the price of medicines. 

13. Cellphone prices have also been increased by a tax ratio of 2%. Imports on cellphones increased by 3% VAT.

 

Budget features

  • Total budget outlay Rs7,022bn—30% greater than previous year
  • Rs1,863 billion fixed for Public Sector Development Programme
  • Budget deficit to be Rs3,560 billion
  • Tax revenue target set at Rs5,822bn
  • FBR tax revenue target set at Rs5,555bn
  • Non-tax revenue target set at Rs894.5bn
  • Current expenditure set at Rs6,192bn
  • Development expenditure set at Rs843.4bn
  • Rs701bn earmarked for Federal PSDP
  • Rs1,152bn fixed for Defence Affairs and Services expenditures
  • Civil government expenditure to be Rs431bn
  • Higher education expenditure of Rs45bn
  • Government sets aside Rs271bn for subsidies
  • Inflation targets set at between 5 and 7 per cent
  • General sales tax on goods to remain at 17 percent
  • 3% value added tax on import of mobile phones eliminated
  • Rs5,200 FED proposed on every 10,000 cigarettes
  • Sales tax on sugar proposed to be be increased to 17 percent
  • Rs40 billion subsidy to be given for electricity, gas
  • Development expenditure for tribal districts fixed at Rs152 billion
  • Rs45.5 billion allocated for Karachi’s development programme 
  • Stipend through BISP scheme increased from Rs5,000 to Rs5,500
  • Govt aims to eliminate circular debt in coming years
  • The government has formed a new ministry to eliminate poverty, which will introduce programs for social safety. People benefiting from the Ehsaas program include the poor, orphaned, homeless, and disabled sectors of the population.
  • Ration card scheme being introduced. 80,000 people to benefit from this scheme with interest-free loans.
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Taxes: 

  • Minimum taxable income for salaried class to be Rs0.6mn per annum
  • 11 progressive tax slabs ranging from 5 to 35 percent proposed for salaried class
  • Minimum taxable income for salaried class to be Rs0.4mn p.a.
  • Eight progressive tax slabs ranging from 5 to 35 percent proposed for non-salaried class
  • Non-filers no more restricted from purchasing property
  • Non-filers to be allowed to purchase property of over Rs5mn
  • Corporate tax to remain at 29 percent for next two years

Wages:

  • 10 per cent increase in salaries for government employees from grade 1 to 16, including armed forces employees
  • 5 per cent ad hoc relief for government employees from grade 17 to 20
  • No increase in salaries for civilian government employees from grade 21 to 22
  • Minimum wage set at Rs17,500
  • Pensions increased by 10 per cent
  • Ministers agree to voluntary 10 per cent cut in salaries

 

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