Finance Bill 2024 :

[ghazi52]

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday wrapped up discussions on the Federal Budget 2024-25 in the National Assembly, maintaining higher tax rates on the salaried group, and announcing an honoraria amounting to 3-month basic pay for the staff and officers of the National Assembly and Senate.

“Budget 2024-25 is based upon a homegrown reform plan under which the government wants to pull the country out of the current economic situation and for this economic reforms are needed,” said Aurangzeb as he began the discussion.

He said the government aims to increase the tax-to-GDP ratio to 13%, pursue the privatisation programme, and implement SOE and energy sector reforms.

The finance minister said the government intends to prioritise the private sector, correct the incentives and shift from a government-led to market-driven economy.

“On the income tax front, before blocking mobile SIMs and banning international travel for non-filers, they will be provided an opportunity of a personal hearing.

“Under Section 116, an explanation will be included in the declaration of foreign assets and assets of spouse, in case of spouse being dependent on the taxpayer.

 

[ghazi52]

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday wrapped up discussions on the Federal Budget 2024-25 in the National Assembly, maintaining higher tax rates on the salaried group, and
announcing an honoraria amounting to 3-month basic pay for the staff and officers of the National Assembly and Senate.
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[ghazi52]

PPP demands review of Senate’s ‘limited’ budgeting powers​

Sherry Rehman says senators made 128 recommendations on budget, none of which were considered by lower house.

 

[ghazi52]

State-owned enterprises remain a burden despite Rs12tr revenue​

Khaleeq Kiani
June 26, 2024

ISLAMABAD: Despite their annual revenues touching Rs12 trillion, the state-owned enterprises (SOEs) remain a substantial and increasing drain on taxpayers’ money, with power sector firms leading the losses and eating up the value of the nation’s assets.

According to the Aggregate Annual Report on Federal SOEs for Fiscal Year 2023 released by the Ministry of Finance on Tuesday, gross revenues reached Rs11.92tr, a 15 per cent increase from the previous year, primarily driven by inflationary pressures, with the oil and financial sectors leading the growth.

“Total aggregate profits were Rs703 billion, while loss-making SOEs reported an aggregate loss of Rs905bn, up 23pc from last year. This resulted in aggregate net losses of Rs202bn, reflecting a 25pc increase from the previous year,” the report said.

The book value of assets rose 16pc to Rs35.22tr and liabilities jumped 20pc to Rs29.72tr, indicating higher financial leverage. Consequently, net equity stood at Rs5.496tr, down 2.55pc.

Report over Rs200bn in net losses as gross revenues jump 15pc

 

[ghazi52]

Govt doles out Rs30bn GST concession to HEV makers​

Sticks to taxing essential food, healthcare, equipment in FY25.

KARACHI: Yielding to pressure from luxury automakers, the government has withdrawn the proposal to impose a 25 per cent sales tax on hybrid electric vehicles (HEVs) and restored the existing 8.5pc in the Finance Bill 2024, resulting in a loss of a whopping Rs30 billion to the national exchequer on an annualised basis.

While wrapping up discussions on the budget 2024-25 in the National Assembly on Tuesday, Finance Minister Muhammad Aurangzeb surprised everyone by announcing that the current reduced sales tax rate would continue to apply to HEVs mentioned in Schedule 8 and Serial No 73.

Market experts believe this GST concession will grow to Rs50bn next year as more assemblers gear up to roll out hybrid models.

The Ministry of Industries and Production (MoIP) pleaded the case on behalf of hybrid car makers for reversal of the proposed hike in the GST despite the fact that the auto assemblers have recently taken the MoIP and other relevant ministries to court over the issue of exporting vehicles and parts.

 

[ghazi52]

PM Shehbaz confirms IMF role in budget prep​

Aurangzeb unveils changes to finance bill, including zero rating on local sales of export industries, stationery items.

 

[FuturePAF]

PM Shehbaz confirms IMF role in budget prep​

Aurangzeb unveils changes to finance bill, including zero rating on local sales of export industries, stationery items.

Kenya also had an IMF imposed budget, and the public responded to that so much (burned down the parliament) that the budget (new taxes) had to be withdrawn.

Putting burden on those that can least absorb the higher costs only makes the situation worse.

 

[Forsvaret]

Kenya also had an IMF imposed budget, and the public responded to that so much (burned down the parliament) that the budget (new taxes) had to be withdrawn.

Kenyans didn’t do 9 May? Pity!

 

[FuturePAF]

Kenyans didn’t do 9 May? Pity!

Kenya and Sri Lanka aren’t like Pakistan. Their government didn’t drag it out and listened to the publics. Also their publics only had to deal with elected officials and police. Even so dozens of Kenyans died at the hands of the police.

 

[ghazi52]

Large Scale Manufacturing index for the fifth month running recorded positive year-on-year growth, as April 2024 LSM grew 5.76 percent year-on-year.

The tide is clearly turning, as April’s year-on-year growth is the highest in 22 months – dating back to when the rout had just begun. On a cumulative basis, the growth at 0.45 percent is the first positive reading in 22 months.

The worst is well and truly over but the recovery by all means is going to be very slow from the looks of it.

 

[FuturePAF]

Large Scale Manufacturing index for the fifth month running recorded positive year-on-year growth, as April 2024 LSM grew 5.76 percent year-on-year.

The tide is clearly turning, as April’s year-on-year growth is the highest in 22 months – dating back to when the rout had just begun. On a cumulative basis, the growth at 0.45 percent is the first positive reading in 22 months.

The worst is well and truly over but the recovery by all means is going to be very slow from the looks of it.

Let’s hope your right

 

[ghazi52]

NA passes tax-laden budget ahead of talks on fresh IMF loan​

PPP earlier this week ended its boycott and agreed to vote for it despite certain reservations.

 

[ghazi52]

3pc sales tax on Sindh schools charging Rs42,000 fees per month​

Private hospitals that charge Rs25,000 per day for a private room or bed will also be subject to 3pc tax.

CM Murad winds up debate on Sindh budget 2024-25​

Provincial Assembly approves Rs213bn supplementary grants.

 

[ghazi52]

Trade deficit with Middle East narrows 24pc in 11 months​

Exports to the region rise 46pc to $2.88bn.

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CDWP clears Rs900bn national development projects​

The CDWP has approved two projects related to the agriculture and food sector.

 

[ghazi52]

Shifting tax burden to public​

Mubarak Zeb Khan
June 30, 2024

At first glance, the new budget appears to show no significant tax rate hikes, but the removal of exemptions valued at up to Rs1.6 trillion will heavily impact the public. The budget’s architect has aimed to shift the financial burden onto the general populace while also prioritising the sale of loss-making state-owned enterprises (SOEs).

Although the sale of SOEs might help reduce government expenditures, it frequently leads to layoffs, all while the government continues to maintain its perks and privileges, such as free petrol and electricity, without cutting back on spending.

The government currently grapples with two major challenges: increasing revenue and reducing expenses. Revenue is crucial, as 94 per cent of the Federal Board of Revenue (FBR) income is allocated for debt servicing. This means the government must borrow funds for current and development expenditures, including the defence budget.

A major concern is who will decide which income sources to target for taxation and how much spending will be slashed. In developing countries like Pakistan, policymakers frequently deflect blame for their failures while quickly taking credit for any successes. Without hesitation, Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb and FBR officials all describe these unprecedented taxes as IMF diktat.

Govt plans to sell SOEs to cut its spending, but continues to maintain perks like free petrol, electricity