Budget 2024-25 Round-Up Comprehensive Overview of New Taxation Measures

Here’s a simplified summary of the key points from the 2024-25 federal budget passed by the National Assembly:

1. Increased FED on Airline Tickets: Excise duty on business and club class air tickets increased up to Rs. 350,000.
2. Petroleum Development Levy (PDL): Increased by Rs. 10 per liter on MS petrol and High-Speed Diesel (HSD).
3. Income Tax on Developers: 15% of revenues considered as deemed income, with 29% income tax applicable.
4. Tax on Hybrid Vehicles: Reduced rates continue till June 30, 2026, with 8.5% for up to 1800cc and 12.75% for 1801-2500cc engines.
5. FED on Cement: Increased to Rs. 4/kg from Rs. 3/kg.

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1. Extension of FATA PATA Sales Tax Benefits: Extended for one more year till June 30, 2025.
2. Exporters Tax: Now subject to normal corporate tax rates (29% + super tax), eliminating the previous 1% of turnover tax.
3. Capital Value Tax (CVT) on Property: Introduced for farmhouses and 2 kanal homes in Islamabad.
4. Tax Fraud Investigation Wing: Established within Inland Revenue to combat tax evasion and fraud.
5. Increase in Travel Allowance for Lawmakers: Raised from Rs. 10 to Rs. 25 per kilometer, and unused airline tickets carry over to the following year.

These amendments reflect the government’s fiscal policy adjustments aimed at revenue generation, promoting specific industries, and addressing fiscal management challenges.