Petroleum development levy increased from Rs50 to Rs60 per liter:
ISLAMABAD, Jun 24 (APP):Minister for Finance and Revenue Senator Mohammad Ishaq Dar on Saturday informed the National Assembly that Pakistan had agreed on Rs 215 billion taxes after three-day parleys with the officials of the International Monetary Fund (IMF) to complete the 9th review under the Extended Fund Facility (EFF), pending due to the country’s external financing gap.
“As a result of the talks with IMF, for the fiscal year 2023-24, the final taxes of only Rs 215 have been agreed, ensuring that it will not burden the poor and middle segments of the society,
He said while winding-up general discussion on the budget for the year 2023-24.
Similarly, he said Pakistan would bring down the running expenditure by Rs 85 billion, which would have no impact on the proposed development budget, the raise in salaries and pensions of the federal government employees.
The petroleum development levy was then increased from Rs50 to Rs60 per liter. Ishaq Dar claimed the limit of the levy will not cross Rs60, adding the clause in the budget regarding an unlimited cap on the levy is being withdrawn.
He said that from the 59 suggestions made by the Senate, 19 are of utmost importance.
“Every effort has been made to accommodate the proposals completely or partially despite the challenges. The suggestions also include abolition of interest, defense budget and BISP, as well as a reduction in unnecessary expenditures,” Dar told the House.
He further said that the super tax limit has been increased from Rs300 million to Rs500 million. The objective behind 06% tax on transactions of non-filers is to document the economy.
The tax on profit has been fixed at 15%, the minister said, adding an additional tax of up to 50% has been levied on windfall profits.
“The windfall tax is not targeted at any particular person or company. This tax is imposed on the entire corporate sector,” he insisted.
Under the Energy Conservation Plan, a duty of Rs2,000 on non-standard fans was suggested that will help save electricity and reduce bills. This tax will be applicable from January 1, 2024.
The minister then announced an increase in the budget of the BISP by Rs16 billion. He also said that the benefit of reduction in oil prices in the global market will be transferred to the public.
The benefit of the reduction in global petroleum prices will be passed on to the public, while Rs5 billion have been set aside for the Ramazan Package through the Utility Stores.
For the basic commodities at Utility Stores, a subsidy of Rs30 billion will be given under the prime minister’s package.
Moreover, Rs30 billion have been set aside for solar tubewells and the budget for the formal tribal areas as well as merged districts is being increased.
Pensions from multiple sources are being abolished; it is unfair. All officers from Grade 17 and above will get one pension only.
After the death of a pensioner, their heirs will receive the pension for 10 years. A government officer will be able to receive a salary or pension from one institution.
On working in another organization, the facility of either a salary or pension will be allowed.
He further told the House that negotiations with the IMF have been going on for three days, as a result of which the authorities have only agreed to taxes worth Rs215 billion.
A deduction of Rs85 billion has been decided on ongoing expenses, Dar said, adding this will not be applicable to salary or pension. He also said they did not agree to double the tax on the salaried class.
Prime Minister Shehbaz Sharif met the IMF chief twice due to which negotiations have been conducted again with the global lender.
The new tax target for the FBR is Rs9,415 billion, up from the earlier Rs9,200 billion. The federal expenditures have been increased from Rs14,460 billion to Rs14,480 billion.
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