Islamabad, Oct 12: Pakistan Mini-Budget Planned with New Taxes to Address Revenue Shortfall
Later in the fiscal year, the administration intends to present a Pakistan Mini-Budget ideas for this have already been sent to the International Monetary Fund (IMF).
According to an official document, the government has proposed emergency tax measures totaling Rs130 billion in the event that tax income is insufficient.
One of the suggested remedies is a 5% rise in the excise charge on sugary or sweetened beverages, which is anticipated to bring in an extra Rs2.3 billion a month.
document also proposes a 1% advance tax on machinery imports, which is expected to generate Rs. 2 billion each month.
A 1% advance income tax on the import of industrial raw materials is another measure the government is thinking about implementing.
This tax may bring in an estimated Rs3.5 billion a month. One per cent tax on suppliers and business importers will probably add another Rs1 billion a month.
The Federal Board of Revenue (FBR) experienced a Rs90 billion deficit in the first quarter of the current fiscal year, prompting the recommended steps. The government anticipates that these additional levies will aid in closing the budget deficit and avert further economic hardship.
The new tax policies implemented by a government subsequent to the June federal budget introduction constitute a mini budget.
Every mini budget is now worth at least Rs200 or Rs300 billion, whereas previously they were only allowed to be worth Rs30 or Rs40 billion. A mini budget is a tax revenue increase that occurs after the budget’s tax targets are not met.
