ISLAMABAD: On Friday, Miftah Ismail, Finance Minister of Pakistan introduced an annual budget of Rs 9.5 trillion for the 2022-23 financial year in the National Assembly. The budget was presented amidst the absence of Pakistan Tehreek e Insaf (PTI)’s opposition members. The speech on the budget started without much confusion as compared to the last few budget presentations.
Miftah Ismail at the beginning of his speech stated that the policies of the former PTI government have resulted in hurting the lives of the people and also losses to the economy.
He added PTI led previous government has caused the country to default thanks to their amateur team. The Finance Minister further added that it is due to policies of the former government that has affected the investment sentiment. Therefore, the coalition-led government aims to fix the economy by taking unpopular decisions. Miftah Ismail continued his speech by saying that Imran Khan did not deliver at all and wasted precious four years. Not even a single economic zone was built when the former government was in power, he added.
The Finance Minister continued his speech, and announced the budget as follows:
The tax bracket for small businessmen was raised to Rs0.6 million from Rs0.4 million, by the government. The salaried class will have to endure a Rs 1.2 million taxable income limit, which was previously Rs0.6 million. The government servants got good news as a 15% increment has been allocated for them. Furthermore, Rs525 billion will be spent on pensions a year, the merger of the Adhoc allowances.
Solar panels distribution and import has got tax exemption. On the other hand, custom duty will be exempted from 30 necessary pharmaceutical ingredients.
People who send remittances abroad via banks or other means of transfer of money will have to pay advance withholding tax.
The defense sector got a budget allocation of Rs1, 450 billion.
45% of the total budget will be allocated for paying debts, up to Rs3, 950 billion.
For the health sector, the budget allocated is Rs24 billion, while the education projects budget is allocated up to Rs51 billion.
The budget allocated for Benazir Graduate Scholarship Programme is Rs9billion, while several projects of social welfare will have a budget of Rs40 billion.
Finance Minister Miftah Ismail announced that due to the higher petroleum prices, those having an income of less than 40,000 will get monthly relief of Rs2, 000. Some of the key points of the budget presented by the coalition-led government include the following:
• The outlook of the total budget of Rs9.5 trillion
• 15% increment in salaries of Govt employees
• Proposed subsidies on wheat flour and sugar
• 1600CC car owners will have to pay an increased tax
• Increase taxes on cigarettes
• Expected remittances up to $33.2 billion
• Reduction of tax from 10% to 5% for pensioners
• The health sector budget allocated up to Rs24 billion
