Pakistan Maintains Standard Sales Tax Rate at 18% in 2024-25 Budget

By DTD- On Jun 13, 2024

Finance Minister Aurangzeb Presents Budget, Rejects Proposal for Increase; Projects 3.6% GDP Growth, 12% Inflation

ISLAMABAD – The standard rate of sales tax would remain unchanged at 18 percent from July 1, 2025.

This was announced by Finance Minister Aurangzeb while presenting the federal budget 2024-25 in the National Assembly on Wednesday.

Finance Minister Aurangzeb unveiled the Rs18,877 billion federal budget for the fiscal year 2024-25, setting a GDP growth target of 3.6 percent and projecting an inflation rate of 12 percent.

He also noted that the budget deficit to GDP is estimated at 6.9 percent, with a primary surplus projected at 1.0 percent of GDP.

The budget proposal of raising sales tax rate from 18 to 19 percent was discussed between the Federal Board of Revenue (FBR) and top government decision makers. The government has again rejected the proposal and the 18 percent sales tax would continue from next fiscal year (2024-25).

Prime Minister Shehbaz Sharif rejected this proposal of raising the standard rate of sales tax from 18 to 19 per cent.

Non-Filers Pakistanis face these foreign travel restrictions after Budget 2024-25

Pakistani government has tightened noose around non filers in Budget 2024-25.

The PML-N led alliance government decided to restrict the foreign travel of non-filers, allowing exceptions only for those traveling for Hajj, Umrah, or educational purposes.

Under the new proposal, Rs1 crore penalty will be imposed for travel agencies that do not comply with the new rules.

Finance Minister Muhammad Aurangzeb presented the budget in a National Assembly session, which was marked by opposition slogans against Nawaz Sharif.

In his address, Aurangzeb emphasised the importance of digitising the Federal Board of Revenue (FBR) and implementing reforms to enhance tax collection.

The government has set an ambitious Rs12 trillion tax revenue target for the FBR, a 38pc increase from the current fiscal year. The Finance Bill also stipulates a Rs20 million fine for repeat non-compliance.

Earlier, the government announced stern plans to take action against three million non-filers, including disconnecting their electricity and gas connections. The government will enforce these regulations to crack down on tax evaders.

#Pakistan #Sales Tax Rate Aurangzeb Budget