Highlights from Pakistan's Budget 2021-22, New Taxes, and Relief Measures
The government is submitting the budget for the upcoming fiscal year, which would have nearly Rs. 8 trillion.
He said the total budget size for the coming year, which amounted to Rs. 8.487 trillion was almost 19% higher than the budgeted expenditure from last year, set at Rs. 7.136 trillion.
The finance minister revealed that for FY22, the general revenue estimate is $1.2 trillion. The estimated total expenditure for next year is over Rs. 8 trillion. The government set a GDP growth target at 4.8 percent.
An allocation of Rs. Two thousand one hundred thirty-five billion (up from Rs. 1,324 billion) has been budgeted for the Public Sector Development Programme (PSDP) in FY22.
The online marketplace would be considered a supplier regarding third-party sales through their platform, meaning that sales would be subject to sales tax.
It is recommended that specified items be required to get brand licenses for each distinct brand or SKU. Section 56C establishes a reward program aimed at promoting tax culture.
To prevent the incentive from being abused, a new sub-section is proposed to provide for randomizing "mystery shopping." In addition to the usual rate of 17 percent, it is planned to increase the sales tax on potassium chlorate from Rs. 80 per kg to Rs. 90 per kg.
As a proposed condition of removing zero rating from Petroleum Crude Oil, various plant and machinery components, as well as parts of zero-rated plants and machinery, import of plant and machinery by the petroleum and gas sector, and supply, repair, and maintenance of ships, it has been suggested that zero-rating be discontinued.
The Sixth Schedule is suggested to be streamlined, with exceptions limited to issues like food, health, and education removed. The eighth Schedule is intended to be streamlined, with reduced rates other than primary food products, health, and education incorporated into the regular regime.
The sector of reclaimed lead and old lead batteries is unorganized. The proposed change is to withhold the entirety of the sales tax on sales of these commodities, based on the Eleventh Schedule.
It is proposed to charge sales tax on sugar and include it in the Third Schedule. A laborer's minimum wage is set at Rs. 20,000.