Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has proposed significant changes in tax policies while presenting the federal budget for the fiscal year 2024-25.
In his speech to the National Assembly, the finance minister Muhammad Aurangzeb announced an 18 percent sales tax on various categories of mobile phones.
The federal government has suggested major alterations to tax policies to boost revenue, including the removal of exemptions for certain items based on their categories.
Additionally, there is a proposal to raise import duties on luxury cars worth over $50,000 and to increase import duties on steel and paper products.
Muhammad Aurangzeb presented Pakistan's budget for the fiscal year 2024-25, totaling Rs18 trillion. The National Assembly session began with the recitation of the Holy Quran, followed by the national anthem, with Prime Minister Shehbaz Sharif in attendance.
At the beginning of his speech, Finance Minister Aurangzeb commended PM Shehbaz Sharif and his team for their efforts over the past year to revive the economy, expressing confidence that Pakistan will soon embark on a path of inclusive and sustainable economic growth.
The finance minister announced a 101 percent increase in the development budget, with 81 percent allocated for ongoing schemes and 19 percent for new projects. He also outlined development initiatives in Azad Kashmir and merged districts, emphasizing the completion of ongoing projects as a top priority. The government plans to focus on export, equity, empowerment, environment, and energy under the 5-E framework.
The budget includes allocations of Rs5 billion for the Quaid-e-Azam Health Tower in Islamabad, Rs7 billion for projects in the poorest districts, Rs6 billion for the Karakoram Highway project, Rs4 billion for the digitalization of the national economy, Rs2 billion for the establishment of a Danish school in Islamabad, and Rs5 billion for the establishment of seven Danish schools in Azad Kashmir and Gilgit-Baltistan.
