Federal Budget 2024-25 Pakistan Date

Islamabad: The federal government of Pakistan will present the Federal budget 2024-25 of 170 trillion on June 7, 2024. The volume of federal expenditure in the upcoming financial year 2024-24 is expected to be 17 trillion rupees. Interest and debt payments are estimated at Rs 9.5 trillion.

The government of Pakistan will announce a 10 to 15 percent increase in the salaries of employees. However, the final decision will be taken by the governments after reviewing the recommendations of the Finance Ministry. If approved, the increase would take effect from July 2024.

Federal Budget 2024-25 Pakistan Date

Federal Budget Pakistan Date

800 billion rupees are expected to be allocated for subsidies in the energy sector and the federal tax revenue is expected to be more than 11.2 trillion rupees. A target of 680 billion rupees is likely to be set in terms of federal excise duty and a target of 3900 billion rupees is likely to be set in terms of sales tax.

The initial estimate of non-tax revenue in the budget is 2100 billion rupees, while the target of receiving more than 1050 billion rupees from petroleum levy is expected.

The rate of sales tax on supply of taxable goods to unregistered persons has been increased from 3% to 4%, federal excise duty of 5% on fertilizers, income tax rate has been increased by 2.5% on monthly salary of more than two lakh rupees. While for non-filers, 0.6% tax has been applied on banking transactions of more than fifty thousand rupees.

As soon as Finance Act 2023 comes into effect, after increasing the petroleum levy from 50 to 55 rupees, additional supertax on income has also been implemented. The income slab for supertax has been increased from 30 crores to 50 crores. Under the Finance Act, 10% supertax has also been imposed on the income of banking companies exceeding 30 crores.

In major sectors, 10% tax will also have to be paid on earning more than 30 crores. The Federal Board of Revenue has also uploaded the Finance Act 2023-24 on the website.

The Chairman Standing Committee will be permitted to drive a 1200 cc car as a result of the amendment. Prior to this, 1300- to 1600-cc automobiles were permitted. The imposition of new tariffs on outdated lights and fans was also approved.

Older technology fans will be subject to a 2,000 rupee tax as of January 1; similarly, old lightbulbs will be subject to a 20 percent tax as of that day. The Finance Bill 2023 that was adopted had a total of 9 modifications suggested. The administration passed 8 modifications to the Finance Bill, and the opposition approved one.

Under which major sectors include petroleum, gas, pharmaceuticals, sugar, textile, fertilizer, iron, steel, LNG terminal, oil marketing, oil refiner, airlines, automobiles, beverages, cement, chemicals, cigarettes, tobacco sector.

The tax on the purchase and sale of real estate was amended to increase it from 1% to 2%, and it was accepted. The federal excise charge on juices was raised from 10% to 20%, while an amendment to impose a 5% federal excise duty on fertilizers was adopted. They will also have to pay 10% super tax.

Companies earning 40 to 50 crores per annum will be charged 8% super tax. The rate of super tax has increased from 4 to 6% on income between 35 crores and 40 crores. The rate of super tax has been maintained at 3% on income.

Budget 2024-25 Pakistan salary increase

Government Employees in grades 17 to 22 have had their pay increased by an ad hoc 30 percent, while those in grades 1 through 16 have seen a 35 percent raise. The federal cabinet approved a 17.5% increase in pension benefits.

Income tax has been increased by 2.5% on the monthly income of more than two lakh rupees, i.e. more than 2.4 lakh per year, five percent federal excise duty has also been imposed on fertilizer and additional income of 35 billion rupees will be obtained from excise duty on fertilizer.

Federal Budget 2024-25 Pakistan Date

More than thirty imported luxury products, including packaged phones, animal feed, cosmetics, confectioneries, and chocolates, are anticipated to see price increases in this budget. Tax rates on non-filers are also set to rise. Sales tax on imported gadgets will continue at 25%, while it will also remain at 25% for imported cosmetics like lipstick, mascara, and face powder. Imported energy-saving bulbs, chandeliers, and LEDs will be pricey.

A 25% sales tax will also be applied to imported shampoos, soaps, lotions, pet food, branded women’s purses, branded shoes, and hair colours and dyes. Glasses, perfumes, imported private arms, branded headphones, iPods, speakers, luxury imports, imports of doors and windows, bathroom fixtures, tiles and sanitary, as well as imports of carpets and rugs, will all continue to be subject to a 25% sales tax rate.

In addition, the sales tax rate on imported energy drinks, imported juices, cars, imported musical instruments, imported biscuits, imported bakery goods, imported chocolate, and imported candies would stay at 25%. One percent tax on the purchase and sale of property has been increased, the tax on the purchase and sale of property has been increased from one to two percent.

The administration has suggested raising the income tax and holding taxes on all kinds of assets. The budget for 24.2023 will be forced to include all of these revenues. The government intends to enhance the pension for retired employees as well as the salary of government workers from grades 1 to 22 by 20% and by 30%, respectively. 9.2 trillion rupees is the collection goal that the government has set. The initial increase in the Petroleum Development Levy (PDL) will be from Rs. 50 to Rs. 55 or Rs. 60 per litre, as approved by the government.

How Many Percent Salaries of Government Employees increased in FY Budget 2024-25

The federal government is expecting a 10 to 15 percent increase in the salaries of government employees, while the pension of retired employees is expected to increase by 10 percent.

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Fahad Munir

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