• Advertise
  • Contact Us
  • Daily The Business
  • Privacy Policy
Sunday, May 11, 2025
Daily The Business
  • Login
No Result
View All Result
DTB
No Result
View All Result
DTB

Budget 2024-25 updates: FBR’s tax target 38% higher at Rs12.97trn in coming fiscal year, says Aurangzeb

June 12, 2024
in Business
Budget 2024-25 updates: FBR’s tax target 38% higher at Rs12.97trn in coming fiscal year, says Aurangzeb
Share on FacebookShare on TwitterWhatsapp

Finance Minister Muhammad Aurangzeb announced Pakistan’s federal budget 2024-25, targeting a modest 3.6% growth for the coming fiscal year, as Islamabad looked to appease the International Monetary Fund (IMF) and balance its burgeoning books with higher taxation.

The salaried group came out frustrated, while capital markets rejoiced at ‘status quo’. It was the real estate and IT sectors that were left disappointed. Government employees were offered raises, while pensions also increased.

Minimum wage was enhanced to Rs37,000, and some proposals discussed privatisation and the energy sector.

Inflation, which has proved to be a headache for Pakistan’s policymakers in recent years, was projected at 12% for the coming fiscal year.

The budget was announced with a total outlay of Rs18.9 trillion (up 30% compared to the budgeted outlay of FY24), and gross revenue receipts are expected at Rs17.8 trillion. The Federal Board of Revenue (FBR) taxes are envisaged at Rs12.97 trillion, an amount nearly 38% higher than the outgoing fiscal year.

Defence expenditure

media reported the budget speech live underneath.

Updates


GST on tier-1 textile retail sector enhanced from 15% to 18%, says Aurangzeb.


Capital markets

CGT on non-filers to go as high as 45%, while on filers of income tax returns, it will stay at 15%, says Aurangzeb.


Slabs for salaried group will change, says Aurangzeb.

“For non-salaried individuals, income tax can go as high as 45%.”

The government intends to maintain income tax exemption up to Rs0.6 million.

While Aurangzeb did not share the slabs during his speech, calculations done later by various bodies tax suggest much higher taxation on all income levels.


Rs12.97 trillion is FBR’s target, which is 38% higher than the outgoing fiscal year, says Aurangzeb.


“Rs1.5 trillion for PSDP, which is 101% higher than the previous year.”




“Rs4 billion allocation made for ‘e-bikes’ and another Rs2 billion for energy-saving fans that promote energy conservation,” says Aurangzeb.


Rs86.9 billion allocated to promote remittances in Pakistan, says Aurangzeb.


Rs79 billion allocated for IT sector, says Aurangzeb.


An IT park in Karachi. Allocation of Rs8 billion made for it, says finance minister.



Aurangzeb highlights focus on these areas for energy sector:

Reduce transmission and distribution losses

9 DISCOs privatisation

Reduce theft

Promote solar, energy, and wind

Rs253 billion allocated for energy sector


BISP programme allocation has been increased by over 27%, says Aurangzeb.


“We have prepared a three-pronged strategy to reduce pension burden, and discussions on this has started,” says Aurangzeb.


“The government should not be doing business. We are starting a comprehensive programme to privatise state-owned enterprises,” says Aurangzeb.


“Pension reforms on the cards. I will mention them later in the speech,” says Aurangzeb.


Aurangzeb proposes what he calls a ‘National Fiscal Pact’ with all provinces


Pakistan engaging with IMF on a bigger programme, says Aurangzeb.


Aurangzeb begins budget announcement.

“This is a great honor for me to present the budget for fiscal year 2024-25,” says Aurangzeb.

“We are working on a homegrown reform to accelerate the economic growth of Pakistan.”


Ruckus in National Assembly mars start of session


Earlier, the delay came amid reports of rifts between the government coalition partners – Pakistan Peoples Party (PPP) and Pakistan Muslim League-Nawaz (PML-N) – over budgetary measures.

It was reported earlier that Prime Minister Muhammad Shehbaz Sharif signed the documents of the Federal Budget 2024-25 after its approval from the Federal Cabinet.

Muhammad Aurangzeb, former CEO and president of one of Pakistan’s largest banks, faces his toughest challenge yet – present the budget for a coalition government that is under pressure on three counts; satisfying the International Monetary Fund (IMF), providing some relief to the inflation-weary public, and ensuring growth for an economy that has faced stagnation in the last few years.

The PML-N-led coalition government is looking to balance requirements for the IMF, public, and a struggling economy. But it also has to take PPP onboard over the budgetary measures as it stands on a weak footing in the National Assembly.

The budget is likely to have an estimated outlay of over Rs18 trillion.

It is also being presented at a time when background talks are ongoing with the IMF which is likely to keep a close eye on any subsidies and unsanctioned expenditures that go against the contours of the new programme.

While Islamabad is hoping for a larger, longer facility with the IMF, its requirements are also likely to be tougher for Pakistan in pursuit of its 24th bailout.

Some areas of interest:

  • GDP growth target

  • External financing estimates

  • Taxation on salaried group

  • GST level

  • PSDP size and focus

  • Taxing the under-taxed sectors

  • Widening tax base

  • Super tax

  • CGT and tax on dividends

The budget comes a day after the government said economic growth of 2.4% is expected in the outgoing fiscal year and it would miss a target of 3.5%, although revenues were up 30% over last year, and the fiscal and current account deficits were under control.

Aurangzeb, during his press briefing while unveiling the Pakistan Economic Survey 2023-24, had said there were “no sacred cows”, offering a sneak peek into the budget announcement.

Tags: Budget FY25FY2024 25 budgetIMFIMF and PakistanIMF programmeLive budget 2024 2025Muhammad AurangzebPakistan EconomyPakistan IMF programme
Share15Tweet10Send
Previous Post

Armenian leader announces plan to leave Russia-dominated security alliance as ties with Moscow sour

Next Post

UAE expresses solidarity with Kuwait over victims of fire

Related Posts

Hyundai launches All-new TUCSON Hybrid, deliveries commence nationwide - Business & Finance
Business

Hyundai launches All-new TUCSON Hybrid, deliveries commence nationwide – Business & Finance

May 11, 2025
Economic reforms, transformation: Aurangzeb briefs leading global investors - Business & Finance
Business

Economic reforms, transformation: Aurangzeb briefs leading global investors – Business & Finance

May 10, 2025
Weekly SPI inflation up 0.24pc - Business & Finance
Business

Weekly SPI inflation up 0.24pc – Business & Finance

May 11, 2025
Mari Energies announces first gas discovery at Soho-1 well in Sindh - Business & Finance
Business

Mari Energies announces first gas discovery at Soho-1 well in Sindh – Business & Finance

May 10, 2025
Europe’s STOXX 600 up, Germany’s DAX at record peak on trade deal optimism - Markets
Business

Europe’s STOXX 600 up, Germany’s DAX at record peak on trade deal optimism – Markets

May 9, 2025
Pakistan rupee depreciates further against US dollar - Markets
Business

Pakistan rupee depreciates further against US dollar – Markets

May 9, 2025

Popular Post

  • FRSHAR Mail

    FRSHAR Mail set to redefine secure communication, data privacy

    126 shares
    Share 50 Tweet 32
  • How to avoid buyer’s remorse when raising venture capital

    33 shares
    Share 337 Tweet 211
  • Microsoft to pay off cloud industry group to end EU antitrust complaint

    45 shares
    Share 18 Tweet 11
  • Saudi Arabia Launches World’s First Self-Driving Flying Taxi to Transport Hajj Pilgrims

    42 shares
    Share 17 Tweet 11
  • SingTel annual profit more than halves on $2.3bn impairment charge

    42 shares
    Share 17 Tweet 11
American Dollar Exchange Rate
  • Advertise
  • Contact Us
  • Daily The Business
  • Privacy Policy
Write us: info@dailythebusiness.com

© 2021 Daily The Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Advertise
  • Contact Us
  • Daily The Business
  • Privacy Policy

© 2021 Daily The Business

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.