The National Assembly formally approved the federal budget for 2024–25, during its meeting in Islamabad today, On live television, Speaker Ayaz Sadiq approved the Finance Bill 2024 modifications announced by Finance Minister Muhammad Aurangzeb.
The proposed modifications in measures specified in the amendment document and announced by the Finance Minister can be summed up as follows.
Increased FED on Airline tickets: The excise charge on business and club class airline tickets has been raised by the federal government to a maximum of Rs. 350,000.
Petroleum Development Levy (PDL) Up by Rs. 10/Liter: The government has made the decision to raise the PDL for MS gasoline and High-Speed Diesel (HSD) by Rs. 10 per liter.
Income Tax on Developers: Revenues over 15 percent will be declared income, subject to a 29 percent income tax.
Tax on hybrid Vehicles: For hybrid vehicles with an engine capacity of up to 1800cc and between 1801-2500cc, respectively, the reduced rate of 8.5 percent and 12.75 percent will remain in effect. However, this benefit is only available until June 30, 2026 due to proposed modifications.
FED on cement increased to Rs. 4/kg: In a surprising move, the Finance Minister has suggested raising the Federal Excise Duty (FED) on cement from Rs. 3 per kg to Rs. 4 per kg, despite press sources speculating about a potential reversal of the hike.
One year Extension to FATA PATA on sales tax: The sales tax incentives granted to FATA PATA have been extended by the government for an additional year, until June 30, 2025.
Exporters will pay normal corporate tax instead of 1%: The government is still taxing export income at the corporation rate of 29% plus any applicable super tax, as it was previously. Exporters used to pay 1% of their total export revenue, which was the complete and final amount.
Capital Value Tax (CVT) on property: CVT on two-kanal residences and farmhouses in the nation’s capital.
Setting up Tax Fraud Investigation Wing Inland Revenue: The duties of the Tax Fraud Investigation Wing of Inland Revenue include the identification, examination, investigation, prosecution, and prevention of tax fraud and evasion.
Increase in Travel Allowance of Lawmakers: Members of parliament now receive a travel stipend of Rs. 25 per kilometer, an increase of 150 percent over the previous amount of Rs. 10 per kilometer. Additionally, rather of being canceled, the unused annual airline tickets for members of parliament will now be carried over to the following year.
