BAFL 46.29 Decreased By ▼ -0.08 (-0.17%)
BIPL 20.27 Increased By ▲ 0.12 (0.6%)
BOP 5.36 Increased By ▲ 0.04 (0.75%)
CNERGY 4.85 Increased By ▲ 0.25 (5.43%)
DFML 17.51 Increased By ▲ 0.91 (5.48%)
DGKC 78.56 Increased By ▲ 0.71 (0.91%)
FABL 28.91 Increased By ▲ 0.70 (2.48%)
FCCL 20.51 Increased By ▲ 0.36 (1.79%)
FFL 9.50 Increased By ▲ 0.28 (3.04%)
GGL 12.97 Increased By ▲ 0.16 (1.25%)
HBL 112.13 Increased By ▲ 0.63 (0.57%)
HUBC 122.60 Decreased By ▼ -1.20 (-0.97%)
HUMNL 7.61 Decreased By ▼ -0.14 (-1.81%)
KEL 3.35 Increased By ▲ 0.08 (2.45%)
LOTCHEM 28.47 Increased By ▲ 0.02 (0.07%)
MLCF 41.54 Decreased By ▼ -0.21 (-0.5%)
OGDC 121.62 Increased By ▲ 6.12 (5.3%)
PAEL 18.75 Decreased By ▼ -0.29 (-1.52%)
PIBTL 5.53 Decreased By ▼ -0.05 (-0.9%)
PIOC 113.75 Increased By ▲ 1.15 (1.02%)
PPL 107.36 Increased By ▲ 7.16 (7.15%)
PRL 26.98 Increased By ▲ 1.28 (4.98%)
SILK 1.10 Decreased By ▼ -0.01 (-0.9%)
SNGP 69.60 Increased By ▲ 1.80 (2.65%)
SSGC 12.81 Increased By ▲ 0.26 (2.07%)
TELE 8.44 Decreased By ▼ -0.06 (-0.71%)
TPLP 13.36 Decreased By ▼ -0.04 (-0.3%)
TRG 85.53 Decreased By ▼ -0.12 (-0.14%)
UNITY 26.33 Decreased By ▼ -0.32 (-1.2%)
WTL 1.55 Decreased By ▼ -0.03 (-1.9%)
BR100 6,442 Increased By 65 (1.02%)
BR30 22,781 Increased By 404.8 (1.81%)
KSE100 62,956 Increased By 463 (0.74%)
KSE30 21,004 Increased By 174.8 (0.84%)
Print Print 2023-02-16

Dar presents Rs170bn tax measures

  • Blames previous government and last year’s devastating floods for the current economic situation
Published February 16, 2023

ISLAMABAD: The government has presented tax measures, including an increase of one percent in the general sales tax (GST) and tax on luxury items as well as duties to mobilise additional taxes of Rs170 billion in the next five months as agreed with the International Monetary Fund (IMF).

Finance Minister Ishaq Dar blamed the previous government and last year’s devastating floods for the current economic situation, before unveiling taxation measures after presenting the Supplementary Finance Bill, 2023, in the National Assembly.

However, the session was adjourned without approving the proposed legislation after Maulana Abdul Akbar Chitrali pointed out the lack of quorum. As soon as the finance minister ended his speech, the National Assembly speaker stated that the presented bill will not be referred to the concerned standing committee of the Lower House.

Rs170bn additional taxes: Do it thru bill, Alvi asks Dar

The finance minister, after holding the previous government responsible for the current economic situation, demanded the formation of a commission to determine as to who was actually responsible for the current economic mess.

Dar said that Pakistan had agreed during the 10-day-long talks with the IMF team on the 9th review to take taxation measures and now Rs170 billion additional taxes are being imposed. He said that some portion of it would be utilised to reduce the fiscal deficit as the government would reduce the flow of circular debt for the ongoing fiscal year from Rs853 billion to Rs336 billion.

He said that the power sector gap between the billed amount and recovery was Rs1,400 billion due to theft, line losses, and no-payment of bills as power generation cost is Rs3,000 billion, whereas, recovery is hardly Rs1,600 billion.

The finance minister added that;(i) GST on luxury items is being increased from Rs 17 percent to 25 percent;(ii) standard rate of GST is being increased from 17 percent to 18 percent;(iii) 20 percent FED on the air travel fare or Rs50,000 whichever is higher;(iv) 10 percent withholding tax adjustable on wedding events;(v) increase in FED on cigarettes; and (vi) per kg FED increase on cement from Rs1.50 to Rs2.

The finance minister said that the country is facing fiscal and current account challenges and revival of the IMF programme would increase foreign exchange reserves, stabilise the rupee, increase exports and remittances, besides help in dealing with LCs.

He said that over 30 million people have been affected by the floods and as per a study conducted by the World Bank, the Asian Development Bank (ADB), the EU and others with the help of the Planning Ministry, $30 billion in losses have been estimated: $16 billion to the economy and $14 billion to infrastructure.

The finance minister said that the government has also been working on sectoral reforms and agriculture can bring about a positive impact on the economy in the shortest possible time. Therefore, the prime minister has announced an agricultural package worth Rs2,000 billion for the farmers and is also providing Rs30 billion in loans to the youth related to agri-schemes.

He said that a subsidy is being given for tractors and threshers, adding that the DAP being imported will be provided to the farmers at less price and a Rs30 billion subsidy is being provided on imported urea for farmers.

He added that Rs10 billion has been earmarked for the development of small businesses related to the agriculture sector. He said the government has also increased BISP funding by Rs40 billion for vulnerable people. He said the federal cabinet would also take austerity measures.

Copyright Business Recorder, 2023


Comments are closed.

Haq Feb 16, 2023 08:57am
Steroids for a dieing patient (economy & corrupt system), can't guarantee increase in dollar reserves, huge backlog of external payments (loans, interest, bonds, imports, foreign missions / companies / airlines, etc), falling remittances, falling exports, smuggling, unprecedented corruption, shortage of fuel (oil & gas) & food
thumb_up Recommended (0)
Maqbool Feb 16, 2023 11:32am
And FBR is going to procure 155 vehicles of 1,500 cc to 3,000 cc with this increased Tax collection from a World Bank repayable Loan with interest . No Heavy Expenses to be cut by any of those who Rule us. Is it fair that only 1% pays Tax to support our Civil, Miliary and Judicial bloated set up. Why not put a Rs 5 lac Federal Road Tax per year on All vehicles over 1800 cc , payable by everyone , including government owned cars . If owned by the Govt then this Tax can be adjusted and credited to their budget but only after This Tax is made . One way for the Gvernment to also find out how many hundreds of car they actually own .
thumb_up Recommended (0)
M Saleh Feb 16, 2023 11:55am
Dar SB has literally killed the poor & we are praying for his departure for London soon
thumb_up Recommended (0)

Dar presents Rs170bn tax measures

Bulls continue their charge at PSX as KSE-100 gains over 600 points

ADB approves $659mn project financing to support Pakistan

Intra-day update: rupee continues improvement against US dollar

Open market: rupee’s strengthening round continues against US dollar

Despite Gaza death toll soaring, US unlikely to rethink weapons supplies to Israel

IHC turns down Imran’s withdrawal plea in Toshakhana case

FBR notifies list of entities to be integrated with its ‘RADAR’

FBR to integrate real time data of 145 entities

Digital payments: SBP launches ‘Raast P2M’ service

Cherat Packaging to sell papersack Line V for $4.7mn