[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Pakistan is expected to reveal its federal budget for the next fiscal year (FY2024-25) on June 7, with a projected total expenditure of Rs 16,700 billion.Preliminary estimations indicate that spending on interest and loans could amount to approximately Rs 9,700 billion, while subsidies are anticipated to be about Rs 1,500 billion.
Tax revenue is predicted to surpass Rs 11,000 billion, with direct taxes contributing Rs 5,300 billion and federal excise duty expected to generate Rs 680 billion. Sales tax is forecasted to yield over Rs 3,850 billion, while customs duty is likely to bring in more than Rs 1,100 billion.
Read more: Pakistan Initiates Discussions With IMF For Extended Financial Assistance
Non-tax revenue is estimated at Rs 2,100 billion, with the petroleum levy contributing Rs 1,100 billion. The federal budget deficit is projected to be around Rs 9,300 billion.
Earlier reports suggested that the Pakistan government might eliminate tax exemptions in the FY2024-25 budget under IMF guidance.
Furthermore, discussions are underway regarding the imposition of sales tax on tractors and pesticides, which could lead to price hikes for these essential agricultural inputs. Currently, both tractors and pesticides are exempt from sales tax under the Sixth Schedule of the Sales Tax Act, but there are considerations to remove these exemptions and introduce a lower sales tax rate for both items.
These measures could significantly impact farmers, increasing the cost of agricultural machinery and pesticides and posing a considerable burden on those dependent on these products.
Furthermore, there is a proposal to impose withholding tax on commercial importers in the forthcoming budget, with the objective of generating an extra Rs 30 billion in tax revenue.[/vc_column_text][/vc_column][/vc_row]
