Thursday , July 7 2022

Pakistan Federal Finance Mini Budget 2022

Pakistan Federal Finance Mini Budget 2022

ISLAMABAD: The government has presented a mini-budget of Rs 360 billion in the National Assembly today to meet the conditions of MF. Cabinet approves Finance Budget 2021.

According to Finance Ministry sources, 144 items will be taxed which are either completely exempt from GST or taxed at 5% to 12%. They will now be charged 17% sales tax. The imposition of a 17% sales tax on these items would raise the tax collection to more than Rs 352 billion as many items would be taxed for the first time and the FBR did not estimate the tax estimates.

Pakistan Federal Finance Mini Budget 2021

Increasing the income tax rate on mobile phone calls from 10% to 15% will result in an additional Rs 7 billion. Zero-rating tax will be levied on imported raw materials used for milk production for infants and 17% sales tax will be levied on it. Will increase revenue by nine billion rupees. In this regard, the tax revenue is estimated at 15 billion.

Sales tax has also been levied on infants’ goods and it will also generate 6 billion rupees in revenue. Items of duty free shops are also subject to 17% sales tax. Since this is the first time they have been taxed, the tax collected cannot be estimated.

Sales tax on cars larger than 850 cc will be levied at 17%, while tax on CBUs of imported electric vehicles will be increased from 5% to 17%. The tax on business-to-business transactions will also be increased from 16.9 per cent to 17 per cent. 17% GST will also be levied on raw materials for medicines, which will fetch a maximum of Rs 45 billion.

Rs 30 billion will be received at the import stage while Rs 15 billion will be received at the local stage. However, the FBR says that the raw material will remain zero rated and will be refunded. Bakeries, restaurants, food chains and shops producing bread will be taxed at 17%, which will fetch Rs 5 billion.