Islamabad – President Asif Ali Zardari has signed the Finance Bill 2024 into law, following its passage through the National Assembly. The bill, part of an International Monetary Fund (IMF) bailout agreement, outlines Pakistan’s fiscal plan for 2024-25.
Finance Minister Muhammad Aurangzeb led the budget process, which saw significant revisions to the initial Rs. 18.9 trillion proposal. Key changes include:
- New tax policies affecting federal and provincial employees, armed forces personnel, and war-injured individuals
- 10% tax on income for Association of Persons earning over Rs. 10 million annually
- 5% excise duty on petroleum oil, expected to generate Rs. 15 billion
- Increased air travel taxes
- 3% Federal Excise Duty on property transfers by filers, 5% for non-filers
- 18% sales tax on imported Afghan produce, stationery items, diagnostic kits, and tractors
- Capital Value Tax on farmhouses and residential properties in Islamabad
The budget targets Rs. 13 trillion in tax revenue, aiming for a 48% increase in direct taxes and 35% in indirect taxes. Non-tax revenue, particularly from petroleum levies, is projected to grow by 64%.
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Workers face higher direct taxes, including an 18% tax on textile and leather products, mobile phones, and increased capital gains taxes from real estate.
These measures align with IMF requirements, focusing on fiscal consolidation and revenue generation amidst Pakistan’s economic challenges.
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