Tax target set at Rs5,500 billion in upcoming budget
The sales tax on tractors may also be increased from 5 percent to 18 percent.
ISLAMABAD (Dunya News) – The proposed budget strategy paper estimated the next year’s federal current expenditure at more than Rs6 trillion, following which the federal expenses are expected to reach Rs4 trillion.
As the federal government is set to announce the federal budget for the upcoming financial year 2019-20 on June 11, it has set a target of Rs5,500 billion in tax revenue, with an expected increase of approximately Rs1,400 as compared to the previous year.
With an increase of one percent in the sales tax, the government has set a target of collecting Rs90 billion additionally. Furthermore, the imposition of additional sales tax on petroleum products, Rs60 billion would be collected.
Besides, the proposal of increase in sales tax on tobacco, sugar, drinks and fertilizers has also been forwarded for a possible consideration.
The sales tax on tractors may also be increased from 5 percent to 18 percent.
Meanwhile, the government has formulated effective measures for restricting the tax evasion on hotels and marriage halls.
Importantly, implementation will be ensured on the track and trace system over receiving sales taxes. Out of the total tax revenue, Rs3,160 billion will be transferred to the provinces.
Sources said that the non-tax income in the budget is expected to be more than Rs1150 billion. According to Dunya News, the federal government is anticipated to spend Rs925 billion on development projects.
Besides, the GDP growth is expected to be more than Rs40 trillion in the next fiscal year and the deficit could be more than Rs2,350 billion.
According to sources, Rs2,100 billion from the budget will be spent on interest and debt payments. The volume of subsidies in the next budget can be kept at more than Rs260 billion.
