ISLAMABAD: The federal government will present the budget for the fiscal year 2024-25 today (Wednesday).
Sources said the government is working on different proposals for salary increases of 10 to 15% for public sector employees in the upcoming budget FY 2024-25.
According to sources, the Ministry of Finance wants to raise the salary by just 10%.
There is another proposal under consideration to jack up monetization for higher grade officers of grades 20, 21, and 22 in the range of 20 to 25%.
The grade 20 officers have been getting monetization of cars in the range of Rs67,000 per month, grade 21 officers in the range of Rs77,000 per month, and grade 22 officers of Rs87,000 per month.
Now it is being considered that it might be jacked keeping in view inflationary pressures.
The budget 2024-25 which was earlier scheduled to be presented on June 8 is now to be presented today (June 12).
According to the latest reports, the government intends to reduce the burden on low-income groups.
The shift means that more salaried individuals in lower income levels may be eligible for income exemption. However, there is speculation that the government may change tax rates for individuals in higher income groups proportionately.
Read more: Federal Govt Boosts Education Budget with 140% Increase to Rs. 20 Billion
The debate over wage rises for federal personnel has continued, despite the additional financial strain it places on the current economic situation. This project is regarded vital to mitigate the negative consequences of inflation, which has drastically reduced people’s purchasing power.
High-Paid Salaried Individuals Brace for Tax Hike in 2024-25 Federal Budget
The upcoming federal budget for 2024-25 signals significant changes for high-paid salaried individuals, with potential tax hikes and revisions in income tax slabs.
According to budget documents, the government is considering increasing taxes while eliminating unnecessary exemptions. One of the notable changes includes the imposition of a 5% sales tax on petroleum products.
In a broader fiscal outline, 2100 billion rupees have been allocated for defense, and a substantial 9700 billion rupees set aside for interest payments on loans. Development projects will receive 1500 billion rupees, with 253 billion rupees directed to the energy sector and 827 billion rupees to infrastructure.
The budget also allocates 800 billion rupees in subsidies for the energy sector, 206 billion for water resources, and 279 billion for transport and communication. The GDP growth target is set at 3.6% for 2024-25, with an ambitious tax collection target of 12,970 billion rupees for the Federal Board of Revenue (FBR).
The FBR aims to collect an additional 3720 billion rupees in revenue, significantly increasing direct taxes by 3452 billion rupees from the current financial year. Customs duty is projected to rise by 267 billion rupees next year.
Inland revenue taxes are pegged at 11,379 billion rupees, with direct taxes accounting for 5,512 billion rupees. The budget is expected to introduce new tax measures, including phasing out sales tax exemptions on petroleum products.
Additional tax increases include higher taxes on cigarettes, nicotine pouches, and the removal of exemptions on stationery items such as books and markers. The proposal also includes abolishing tax exemptions on branded milk and increasing taxes on both local and imported vehicles.
The budget will implement stricter measures against non-filers, raising taxes on bank withdrawals for non-compliant individuals. There will also be higher tax rates on imported food grains and luxury goods.
High-paid salaried individuals should prepare for changes in income tax slabs, signaling a tighter fiscal environment and increased contributions from this group.
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