ISLAMABAD: Following are the salient features of budget 2021-22 presented by Minister for Finance and Revenue Shaukat Tarin in the Parliament House on Friday.
From first of July 2021 all government employees to get 10% adhoc relief allowance
From first of July 2021 pension to get 10 percent raise
From grade 1 to 5 government allowance to get increase allowance to Rs 900 from Rs 400
Minimum wage has been increased to Rs 20000 per month
On 300 active pharmaceutical industries have been exempted from customs duties
On several raw material used in industries has been either exempted or duties have been reduced
Total incentives due to lowering of duty will amount to Rs 25 billion a year
Tax lowered on warehousing, logistics services and collateral from 8% to 3%
Withholding exempted on Electronic warehouse receipts of PME
Telecommuincation sector has been given industrial status
Special technology Zone would be established aimed with 10 year tax holiday
Imports of capital goods would be duty free for technology zones
SMEs having a turnover of Rs 100 million per year have to pay tax of 0.25%
Sme turnover of rs 100 million to Rs 250 million tax levy of 0.5%
Government to introduce one pager tax return document for SME
IT sector would be for freelance and other services
Final regime tax for IT sector would be 1percent and no question would be asked
Wholesaler and retailers and AOPs minimum tax limit has been increased
Minimum tax level has been raised to Rs 100 million
Proposed that turnover tax and withholding tax will be levied on other sector which are active payer list
Number of Real time point of sale in two years will be increased to 500,000 from 11000 retailers
Propose on individuals and AOPs minimum tax rate to be raised from Rs 10 million to Rs 100 million
Introduction of self assessment scheme, E-audit system and a strict adherence to no harassment for taxpayers
No new taxes on salaried class
Tax rate to be reduced to 1.25% from 1.5%
Promotion of third party audits and minimizing requirements for tax compliance
Expansion of GST base and introduction of new simplified Tax Return Form and new tax code
Every year tax rate will be reduced
Capital gains tax has been reduced to 12.5% to 15%
Withholding tax on mobile phone reduced to 10% from 12.5%
Tax rate will be reduced to 8%
Withdrawal of FED and reduction of sales tax on locally manufactured cars upto 850cc
Allowing zero rating to export of IT services
Exemption to SILOS for storage of agriculture products
Reduction in withholding tax regime by 40%
Exemptions on COVID-19 related medical equipment / items have been extended for six months
Federal excise duty has been imposed on usage of over three minute calls and SMS
Withholding tax on 12 sectors have been removed
Sectors are banking transactions, PSX, margin financing, air travel service, debit and credit cards on overseas buying
Sales tax on 850 cc cars reduced to 12.5% from 17%
Increase in development budget from Rs 630 billion to Rs 900 billion
For Food Security; Rs 1 billion for Locust Emergency and Food Security Project,
Rs 2 billion for enhancing productivity of rice, wheat, cotton, sugarcane and pulses,
Rs 1 billion for enhancement of olive cultivation on commercial scale
Rs 3 billion for improvement of water courses
Rs 100 billion allocated for construction of four hydro power dams (Dasu, Diamer, Mohmand, Neelum Jhelum)
Gross Revenues for 2021-22 have been estimated at Rs 7,909 billion
FBR revenues are estimated to grow by 24% from Rs 4,691 billion to Rs 5829 billion
Federal expenditures are budgeted at Rs 8,487 billion compared to Rs 7,341 billion
Subsidies are projected at Rs 682 billion
Allocation of Rs 260 billion for Ehsaas, 24% increased
Expenditure priorities: Vaccinations $ 1.1 billion, Universal Health Coverage in collaboration with Provinces
Rs 12 billion for collateral free lending to SME,
Rs 10 billion for Kamyab Pakistan Program,
Rs 100 million for anti-rape fund
Rs 66 billion for Higher Education Commission budget
