BAFL 46.25 Increased By ▲ 0.50 (1.09%)
BIPL 20.19 Decreased By ▼ -0.03 (-0.15%)
BOP 5.30 Decreased By ▼ -0.05 (-0.93%)
CNERGY 4.61 Increased By ▲ 0.06 (1.32%)
DFML 16.61 Increased By ▲ 0.64 (4.01%)
DGKC 78.06 Decreased By ▼ -0.63 (-0.8%)
FABL 28.21 Increased By ▲ 0.36 (1.29%)
FCCL 20.07 Increased By ▲ 1.21 (6.42%)
FFL 9.14 Increased By ▲ 0.16 (1.78%)
GGL 12.84 Decreased By ▼ -0.02 (-0.16%)
HBL 111.51 Decreased By ▼ -0.39 (-0.35%)
HUBC 123.69 Increased By ▲ 1.49 (1.22%)
HUMNL 7.65 No Change ▼ 0.00 (0%)
KEL 3.27 Increased By ▲ 0.03 (0.93%)
LOTCHEM 28.30 Increased By ▲ 0.32 (1.14%)
MLCF 41.81 Decreased By ▼ -0.64 (-1.51%)
OGDC 115.39 Increased By ▲ 4.71 (4.26%)
PAEL 19.05 Increased By ▲ 0.16 (0.85%)
PIBTL 5.53 Increased By ▲ 0.06 (1.1%)
PIOC 112.85 Decreased By ▼ -2.45 (-2.12%)
PPL 100.04 Increased By ▲ 5.05 (5.32%)
PRL 25.64 Increased By ▲ 0.27 (1.06%)
SILK 1.10 Decreased By ▼ -0.01 (-0.9%)
SNGP 67.52 Increased By ▲ 3.02 (4.68%)
SSGC 12.54 Increased By ▲ 0.27 (2.2%)
TELE 8.46 Increased By ▲ 0.07 (0.83%)
TPLP 13.39 No Change ▼ 0.00 (0%)
TRG 85.46 Increased By ▲ 1.36 (1.62%)
UNITY 26.60 Increased By ▲ 0.75 (2.9%)
WTL 1.57 Increased By ▲ 0.03 (1.95%)
BR100 6,377 Increased By 82.2 (1.31%)
BR30 22,376 Increased By 439.3 (2%)
KSE100 62,493 Increased By 801.8 (1.3%)
KSE30 20,829 Increased By 274.3 (1.33%)

As budget announcement nears, here are some proposals that could affect you

  • Business Recorder sums up some of the proposals that have been under consideration by the govt
Published June 9, 2023

The coalition government, led by Pakistan Muslim League-Nawaz (PML-N), is set to announce the budget, which is largely seen as its last chance to ‘win over’ the political capital it lost in the last 14 months.

PML-N’s senior leader, close aide of party supremo Nawaz Sharif and current Finance Minister Ishaq Dar will have to delicately deal with expectations of the masses, as elections are expected this year, while keeping in mind the International Monetary Fund (IMF).

Business Recorder looks at what the markets and public will be interested in:

Income Tax

This is probably the most vital announcement for the salaried income group.

In the last year of its previous tenure (2013-2018), the PML-N announced lowering income taxes. But back then, the IMF programme was not hanging over its head.

This time, the story is different.

Experts have said the government, which has revised the revenue target for the Federal Board of Revenue (FBR) in line with the IMF expectations, is likely to focus on increasing indirect taxation.

We will have to wait and watch.

Follow Business Recorder’s live coverage of the budget here

Tax on corporate reserves

The Reform and Revenue Mobilisation Commission (RRMC) proposed an advance tax on the undistributed reserves of both listed and unlisted companies. This was met with fierce opposition.

The corporate sector vehemently voiced its disapproval of the said proposal, and reports suggested it may not be implemented.

But the government, which is running low on revenue, may add burden on the already taxed sector.

Tax on exporters not bringing forex within a specified time period

The RRMC also recommended the Ministry of Finance impose a tax on exporters that are not bringing foreign currency within a specified time period.

The revenue impact is estimated to be positive for the government.

Textile sector eyes imposition of RCET

Meanwhile, the All Pakistan Textile Mills Association (APTMA) urged the government to reinstate the Regional Competitive Energy Tariffs (RCET) for gas at a rate of $9/MMBtu and for electricity at 9 cents/kWh in the upcoming budget.

The textile body also warned textile exports could fall further by $5 billion in the absence of competitive energy tariff.

Pakistan needs export revenue and the textile sector could be given some relief. However, there isn’t a lot of fiscal space in the government’s kitty to offer subsidies.

Last year, total tax exemptions, concessions and special tax treatments to various businesses, sectors/ industries, lobbies/groups and investors cost the government Rs2,239.6 billion in 2022-23 against Rs1,757.035 billion during the fiscal year 2021-22, an increase of Rs482 billion.

Cashless payments at petrol stations

In a bid to encourage cashless banking transactions, the RRMC also recommended that petrol stations across the country should not accept cash payments for fuel purchases in the coming budget (2023-24).

It needs to be seen whether the said proposal is given a green signal by the government.

Govt employees salaries, minimum wage

There were questions from journalists when Dar unveiled the Economic Survey 2022-23 on Thursday if the government was contemplating increasing its employees’ salaries and the minimum wage. Dar said the proposals were under consideration.

Super Tax, PDL

There was also market talk on the government considering increasing the Super Tax on corporates and petroleum development levy from the current upper limit of Rs50 per litre.


1000 characters
Jani Walker Jun 09, 2023 04:30pm
No matter what is presented in the budget, there will be nothing for the poor. The poor can look forward to more misery, unemployment and hunger as this Dar & Co do not care about the country and its poor.
thumb_up Recommended (0) reply Reply
Tulukan Mairandi Jun 09, 2023 10:47pm
The budget, in a nut shell, will lead us to default
thumb_up Recommended (0) reply Reply

As budget announcement nears, here are some proposals that could affect you

Four countries: FBR decides to ink deal on Electronic Data Interchange

Pakistan not on agenda of IMF Executive Board meeting

ECP likely to get election funds soon

Overbilling in violation of Nepra Act: All Discos including KE to face legal proceedings

Commodities being imported by TCP: Govt decides to change payment mechanism

Israeli ground forces move into southern Gaza

War risk insurance rates edge up

Cypher case: IK says will ‘drag’ Bajwa, US embassy officials through the courts

Nov oil sales rise 9pc MoM

Issues related to KE: Al-Jomaih shares its ‘ordeal’ with PM, petroleum minister