Islamabad: Federal Industries and Production Minister Hammad Azhar presented the budget in a session chaired by Speaker Asad Qaiser. Prime Minister Imran Khan attended the session too.
Budget Amount: Rs 7,294.9 billion.
Fiscal Deficit 2020-21: Rs 3,500 billion.
Relief Actions by Govt
- No New Taxes
- No Tax on coronavirus and cancer diagnosis kits
- No Import Taxes on kids food supplement & Diet food
- Tax Exemption is given to overseas Pakistanis on investment in saving bills
- No advance tax on auto rickshaws, motorcycle rickshaws (and up to 200cc motorcycles).
- Sales Tax for big retailers reduced from 14% to 12%.
- EHSAAS program: Rs 208 billion allocated to alleviate poverty.
- HEC Funds: Rs 34 billion allocated.
- Energy, Food and Misc. Sectors: Rs 180 billion allocated.
- NAYA Pakistan Housing Scheme: Rs 30 billion allocated. 10 million houses envisioned for the poor community.
- Pakistan Railways: Rs 40 billion allocated.
- Federal Govt-run hospitals (Karachi+Lahore): Rs 13 billion allocated.
- Health Sector; Science and Information Sector: Rs 20 billion allocated for both sectors exclusively.
- Welfare Fund for Artists: Rs 1 billion allocated.
- Coronavirus Combat: Rs 70 billion allocated.
- Climate Change Combat: Rs 6 billion allocated.
- Special Economic Zones: Rs 80 billion allocated.
- Water Projects: Rs 70 billion allocated.
- Defence Budget: Rs 1.289 trillion allocated (12% higher than last year’s).
Other Prominent Points
- Threshold Variation
Now, people will have to show their CNICs while making a purchase of over Rs100,000. Earlier, this was applicable to Rs50,000 purchases.
- Reduction in federal excise duty on Cement:
The government has reduced the federal excise duty on cement from Rs2 to Rs1.75 per kilogram.
- Spending on Developmental Projects
The government will also be spending on development projects in special areas. Forty billion rupees will be spent in Gilgit-Baltistan and Kashmir, while Rs48 billion on merged districts.
- Increase in federal excise duty on e-cigarettes
The federal excise duty will be increased on e-cigarettes. The FED on imported cigarettes, ‘bidi’, and cigars have been increased to 100%, it was 65% before. The tax on cigarette’s filter rod has been increased from Rs0.75 to Rs1.
- Increase in federal excise duty on caffeine-related products
The FED on caffeine-related products is being increased from 13% to 25% to discourage their use. Excise duty has also been imposed on double cabin pick-ups.
- Reduction in FED on cement
The FED on cement has been reduced by 25 paisas to Rs1.75.
- Revenue Target for FBR
The FBR has set his revenue target at Rs3,900 billion this year. It is recommended that regulatory duties are decreased to stop the smuggling of products.