KARACHI: The Finance Minister Asad umar stated that Budget deficit for FY18 was set at 6.6% (RS 2.2trn) whereas FY19 projections were set at 7.2% (RS 2.9trn). Hence, immediate measure are needed to control this.
Import cover at present is less than 2 months (6-7 weeks). This may build pressure on Rupee, Finance Minister noted.
Public debt is RS 28,300bn at present and 5 years back it was RS 16,000bn. Foreign debt has gone up from USD 60bn to USD 95bn.
Previously a scheme was launched in KPK called Sehat Insaf Card for the lower income group, it has been decided to introduce this to the capital territory of Islamabad and FATA. This will also be introduced in the Punjab budget by the government whereby each family will receive RS 540,000 for medical.
RS 4.5bn to be released immediately for the construction of pending houses for underprivileged class and another 10,000 houses to be constructed shortly after.
As much as 85% of EOBI registered members fall in the minimum pensioner’s category; 10% raise to be given for all.
Petroleum levy increase during the last budget to be reversed by the government. Previous govt had imposed RD on some products. However, RD for RM of export related industries to be made exempt which will be a relief of RS 5bn. This is in addition to the RS 44bn benefit for the textile industry announced yesterday amid lower gas prices.
Tax evasion can be cracked down using modern technology and FBR will save RS 92bn. While total revenue measures would save RS 183bn.
Banking transactions other than cash by non-filers to be taxed at a higher 0.6% (WHT).
Non-filers can now also purchase cars and property over RS 40lakhs.
FED on tobacco to go up plus smuggling to be curbed.
FED on bigger cars (1800cc and above) to be increased to 20% from 10%. Duty on luxury cars to also go up.
Duty to be increased on expensive mobile phones.
Income tax rate on 400k to 2400k (first two slabs) to be unchanged. Tax relief for the salaried class to be increased but would remain lower than FY18.
Tax by Parliamentarians to now be paid for accommodation and other benefits.
Development budget:
- CPEC projects to be protected.
- Constructon of Dams (Diamir and Mohmand) within 5-6 years.
- Federal PSDP to be targeted at RS 725bn as compaed to RS 661bn achieved in FY18.
- Karachi Infrastructure Company Limited to get RS 50bn (public private partnership).
- National Highway Authority will spend RS 100bn on infrastructure projects.