federal budget

The federal budget for the next fiscal year 2020-21 with a total outlay of 7294.9 billion rupees was presented. Minister for Industries and Production Hammad Azhar presented the budgetary proposals in the National Assembly on Friday.

The Minister said the gross revenue receipts have been estimated at 6573 billion rupees. The FBR tax collection target has been set at 4963 billion rupees while the non-tax revenue is estimated to be about 1610 billion rupees.

Under the NFC Award, 2874 billion rupees will be transferred to the provinces. The provincial share in federal taxes is estimated at 2873.7 billion rupees. The net revenue receipts have been estimated at 3699.5 billion rupees indicating an increase of 6.7 percent over the budget estimates of the outgoing fiscal year.

The net capital receipts have been estimated at 1463.2 billion rupees, which are 75.93 percent higher than the outgoing fiscal year.

The Minister said the external receipts for the next year are estimated at 2222.9 billion rupees. The development expenditure outside PSDP has been estimated at 70 billion rupees in the budget.

The total federal expenditures are estimated at 7,137 billion rupees with a budget deficit of 3437 billion rupees, which is seven percent of the GDP. The primary balance will remain -0.5 percent.

Minister for Industries and Production Hammad Azhar stated that GDP growth target has been set at 2.1 percent, which remained negative four percent in the outgoing fiscal year. He said that current account deficit will be confined to 4.4 percent.

Read more: Cabinet approves federal budget for fiscal year 2020-21

The inflation will be brought down from 9.1 percent to 6.5 percent. Foreign direct investment will be enhanced by 25 percent.

Govt. suggested reducing sales tax ratio

Submitting tax proposals, Hammad Azhar said that it has been suggested to reduce the sales tax ratio from existing 14 percent to 12 percent on point of sale to provide relief to common Govt. suggested reducing sales tax ratio

people and shopkeepers in wake of COVID-19.

He stated this while presented the federal budget in NA on Friday. He said minimum tax on hotel industry has been reduced from 1.5 percent to 0.5 percent during the months for six months with effect from April.

He said a mobile application has been introduced to facilitate salaried class to submit their tax returns, which resulted into an increase of 37 percent.

He said an automatic system has been introduced for filing of tax returns. He said seizures, as a result of anti-smuggling campaign seen a rise of 19 to 30 billion rupees.

Elaborating relief measures, the Minister said the upper limit for shopping without showing identity card has been increased from 50,000 to 100,000 rupees.

Online Int’l News with additional input by GVS News Desk