ISLAMABAD : June 9, 2023: Finance minister , Ishaq Dar , on Friday presented federal budget 2023-24 having an outlay of Rs 14.460 trillion, it shows deficit of Rs 7573 billion, highest ever in Pakistan’s 75 years . Finance minister foresees 21 inflation in next fiscal year .
The revenue target for Federal Board of Revenue (FBR) has been set for Rs 9200 billion. . The budget 2023-24 includes allocation of Rs 7303 billion for payments of loans and interest on domestic and foreign loans. The budget has allocation of Rs 1804 billion for defence for next fiscal year.
Govt sets 3.5 target for GDP at 3.5 %. Benazir Income Support Programme (BISP) spending increased to Rs 400 billion. 0.8 million students to get scholarship under this programme . Power and gas sector allocation increased to Rs 1074 billion. Civil administration to get Rs 716 billion.
The Public Sector Development Programme (PSDP) allocation for next fiscal year (federal part) stands at Rs 950 billion. The private sector to share Rs 200 billion for PSDP in 2023-24.
The government proposed 35 % increase in salary of government employees ranging between BPS 1 and 16 and 30 % increase for PBS 17 to 22. The government pensioners to get 17.5 % increase. The minimum salary/ wages have been increased to Rs 32000 a month.
The Finance minister said the government has taken a conscious decision not to impose any new tax on import of essential items to avoid further burden on a common man. A tax of 5 % will be charged on payment through credit cards. This move is meant to discourage payments of millions of dollars through credit/ debt cards. Duty on hybrid car reduced to one percent. Share holders whose income increases to Rs 150 million will pay 1 percent tax. Bonus shareholders to pay 10 % tax.
The Customs allowed to raids in the areas of municipal committees. Levies to assist the Customs authorities for raids in municipal areas. This measure is being taken to discourage smuggling in the country.
To facilitate agriculture sector , there will be zero duty on import of seeds. Super tax be applicable for those whose income exceeds Rs 150 million. There are different categories for imposition of super tax subject to income level. This special tax will go up to 10 percent for those whose income exceeds Rs 500 million. Pensions to cost Pakistan 761 billion. Exports target set at 30 billion dollar . Remittances target set at 33 billion dollar for next fiscal year.
Incentives announced for wooing investors to use local coal.
Direct tax target is Rs 3759 billion. Indirect taxes target has been fixed at Rs 5450 billion. Duty on raw material of solar panels scrapped to zero. Duty on rotter of solar panel also reduced to zero for 2023-24. Battery manufacturing for solar also proposed to zero level. Foreign domestic workers will pay Rs 0.2 million advance tax.
Raw materials used for polyester manufacturing reduced. Duty on rice mills machinery reduced to zero.Duty on CKD reduced from 10 percent to 5 percent. Duty on dying material of textile industry reduced to zero. Duty exemption on imports for Fata to continue till June 2024. IT sector to import raw materials at zero duty in next fiscal year. Duty on import of dypers also reduced to zero. Duty on local manufacturing of thiner has been proposed zero percent. The mining industry allow to import machinery at zero duty . 10 % duty on electric machinery is being imposed . Soft drinks and cars prices to go up with imposition of new taxes. Duty on all raw materials used in pharmaceutical industry has been reduced to one percent. Duty on control board charging board, input and output terminal reduced to zero percent.
The finance minister in his budget speech said the PDM government took a number of harsh decision to avoid serious risk of default . He added that the government is committed to bring relief to the people of Pakistan. He maintained that the budget he was presenting was not an election budget. Ishaq Dar claimed that the last four years rule was a symbol if destruction but now Pakistan is back on the path of progress.
