ISLAMABAD (Dunya News) - The budget for the upcoming financial year has been prepared in consultation with the International Monetary Fund (IMF).
According to sources, the total size of the federal budget is proposed to be set at Rs18,500 billion, with a deficit of Rs9,800 billion. An amount of Rs9,700 billion will be allocated for interest payment on loans.
The FBR's tax target is proposed to be around Rs12,970 billion. Similarly, Rs1,500 billion will be spent on development projects under the PSDP, and the defence budget is proposed to be more than Rs2,100 billion.
The inflation target is set at 12pc, and the economic growth target is set at 3.6pc. Measures will be tightened against non-filers, and tax exemptions worth billions of rupees will be abolished. Prices of old imported vehicles, imported mobile phones, and imported food are likely to rise.
Which commodities will cost more?
Sources say imported chocolates, milk, yogurt, clothes, soap, shampoo, hair colour, make-up items, perfumes, and lotions will become more expensive than their current prices. Besides, ghee, cooking oil, baby milk, sugar, tea leaves, beverages, cosmetics, artificial jewellery, electronics, and watches will also see increase in rates.
Federal Excise Duty on Imported Mobiles
The FBR sources revealed that the new financial year’s budget would have federal excise duty (FED) on imported mobile phones, raising the Pakistan Telecommunication Authority (PTA) tax, and further increasing the General Sales Tax (GST) on these imports.
Sources said that with the current 25pc GST on mobile phones, any additional increase in GST would be challenging.