Islamabad (Staff Report/Agencies): The federal budget 2023-24 with a total outlay of Rs 14460 billion has been announced in the National Assembly.
Finance Minister Ishaq Dar presented the budgetary proposals for next fiscal year.
The budget envisages special initiatives for the uplift of agriculture, industries, and IT sectors, besides, relief for various segments of society including the salaried class.
At the outset of his budget speech — which began after a delay of almost two hours — the finance minister recalled that the country was “headed towards” economic prosperity during the Pakistan Muslim League-Nawaz’s (PML-N) previous government.
Dar said that despite the tough economic challenges confronting Pakistan due to PTI’s bad governance, the coalition parties still came into power.
Key features of FY 2023-24:
Increase in salaries for employees of grades 1-16 by 35% while 30% for those above grade 17 and 17.5% hike in pensions.
Reduction of customs of 10% to 5% on non-localised (CKD) heavy commercial vehicles (HCVs).
Exemption of customs duties on raw materials of diapers, sanitary napkins.
Duty-free import of IT-related equipment equivalent to 1% value of their export proceeds.
No increase in duties on the import of essential items.
At least 5% tax on payments made through credit or debit cards to restaurants resorts.
Withdrawal of sales tax return filing requirement for availing concessionary fixed tax rate of 0.25% for IT & ITeS exports.
Five years tax holiday for agro-based industries being SMEs set up on or after July 1, 2023, from tax year 2024 to tax year 2028.
Exemption of customs duties on specific papers and art cards and board for printing of Holy Quran.
Withdrawal of capping of the fixed duties and taxes on the import of old and used vehicles of Asian Makes above 1,300cc.
Grant of exemption of sales tax on contraceptives and accessories.
The requirement of shop area for tier-1 retailers is proposed to be withdrawn.
Re-imposition of 0.6% advance adjustable withholding tax on non-ATL persons on cash withdrawal.
Waiver of 2% final withholding tax on purchase of immovable property for nonresident individual POC/NICOP holder where immovable property is acquired through foreign remittances remitted from abroad.
Enhancement of monetary limit of foreign remittance remitted from outside Pakistan from Rs5 million to rupee equivalent of $100,000.
Rationalisation of Super Tax under section 4C to apply on all persons across the board on income above Rs. 150 (m): insertion of additional three new income slabs of Rs350(m) to Rs400(m), Rs400(m) to Rs500(m) and Rs500(m) above to be taxed at 6%, 8% and 10% respectively.
