Salient features of budget 2021-22
Minimum wage increased to Rs. 20,000 per month
ISLAMABAD (Dunya News) – Following are the salient features of budget 2021-22 presented by Minister for Finance and Revenue Shaukat Tarin in the Parliament House on Friday.
- From first of July 2021 all government employees to get 10% adhoc relief allowance
- From first of July 2021 pension to get 10 percent raise
- From grade 1 to 5 government allowance to get increase allowance to Rs 900 from Rs 400
- Minimum wage has been increased to Rs 20000 per month
- On 300 active pharmaceutical industries have been exempted from customs duties
- On several raw material used in industries has been either exempted or duties have been reduced
- Total incentives due to lowering of duty will amount to Rs 25 billion a year
- Tax lowered on warehousing, logistics services and collateral from 8% to 3%
- Withholding exempted on Electronic warehouse receipts of PME
- Telecommuincation sector has been given industrial status
- Special technology Zone would be established aimed with 10 year tax holiday
- Imports of capital goods would be duty free for technology zones
- SMEs having a turnover of Rs 100 million per year have to pay tax of 0.25%
- Sme turnover of rs 100 million to Rs 250 million tax levy of 0.5%
- Government to introduce one pager tax return document for SME
- IT sector would be for freelance and other services
- Final regime tax for IT sector would be 1percent and no question would be asked
- Wholesaler and retailers and AOPs minimum tax limit has been increased
- Minimum tax level has been raised to Rs 100 million
- Proposed that turnover tax and withholding tax will be levied on other sector which are active payer list
- Number of Real time point of sale in two years will be increased to 500,000 from 11000 retailers
- Propose on individuals and AOPs minimum tax rate to be raised from Rs 10 million to Rs 100 million
- Introduction of self assessment scheme, E-audit system and a strict adherence to no harassment for taxpayers
- No new taxes on salaried class
- Tax rate to be reduced to 1.25% from 1.5%
- Promotion of third party audits and minimizing requirements for tax compliance
- Expansion of GST base and introduction of new simplified Tax Return Form and new tax code
- Every year tax rate will be reduced
- Capital gains tax has been reduced to 12.5% to 15%
- Withholding tax on mobile phone reduced to 10% from 12.5%
- Tax rate will be reduced to 8%
- Withdrawal of FED and reduction of sales tax on locally manufactured cars upto 850cc
- Allowing zero rating to export of IT services
- Exemption to SILOS for storage of agriculture products
- Reduction in withholding tax regime by 40%
- Exemptions on COVID-19 related medical equipment / items have been extended for six months
- Federal excise duty has been imposed on usage of over three minute calls and SMS
- Withholding tax on 12 sectors have been removed
- Sectors are banking transactions, PSX, margin financing, air travel service, debit and credit cards on overseas buying
- Sales tax on 850 cc cars reduced to 12.5% from 17%
- Increase in development budget from Rs 630 billion to Rs 900 billion
- For Food Security; Rs 1 billion for Locust Emergency and Food Security Project,
- Rs 2 billion for enhancing productivity of rice, wheat, cotton, sugarcane and pulses,
- Rs 1 billion for enhancement of olive cultivation on commercial scale
- Rs 3 billion for improvement of water courses
- Rs 100 billion allocated for construction of four hydro power dams (Dasu, Diamer, Mohmand, Neelum Jhelum)
- Gross Revenues for 2021-22 have been estimated at Rs 7,909 billion
- FBR revenues are estimated to grow by 24% from Rs 4,691 billion to Rs 5829 billion
- Federal expenditures are budgeted at Rs 8,487 billion compared to Rs 7,341 billion
- Subsidies are projected at Rs 682 billion
- Allocation of Rs 260 billion for Ehsaas, 24% increased
- Expenditure priorities: Vaccinations $ 1.1 billion, Universal Health Coverage in collaboration with Provinces
- Rs 12 billion for collateral free lending to SME,
- Rs 10 billion for Kamyab Pakistan Program,
- Rs 100 million for anti-rape fund
- Rs 66 billion for Higher Education Commission budget
