In accordance with Article 75 for the budget year 2024–2025, President Asif Ali Zardari accepted Finance Bill 2024.After the budget passed the National Assembly on Friday, Prime Minister Shehbaz Sharif advised the approval.
Two weeks ago, the federal government unveiled its Rs. 18.9 trillion FY25 budget. The measure was enacted on Friday with a majority vote after Finance Minister Muhammad Aurangzeb made multiple ground-breaking revisions and clause-by-clause readings.
Adjustments to the advance tax on the sale or transfer of immovable property for federal and provincial employees, members of the armed services, and people injured in battle are among the budget’s notable changes.A 10% surcharge will now be added to the income tax rate for Association of Persons (AoPs) with annual incomes above Rs. 10 million.
It is anticipated that a 5 percent excise levy on lubricating oil would generate an extra Rs. 15 billion in revenue. The foreign exchange rate on travel tickets has also increased. The tax on economy class tickets is Rs. 12,500, while business class tickets have greater costs based on the destination.
Property transfers or allocations by filers are subject to a 3 percent FED, while non-filers are subject to a 5 percent FED. Imported fruits and vegetables from Afghanistan, pencils, drawing supplies, diagnostic kits, and tractors now have an 18% sales tax. In Islamabad, private residences and farmhouses are now subject to a capital value tax, with different rates depending on the size of the property.
The ambitious tax revenue target of Rs. 13 trillion for the year beginning on July 1st is established by the new budget. This goal entails raising direct taxes by 48 percent and indirect taxes by 35 percent. It is anticipated that non-tax revenue, such as petroleum charges, will rise by 64%.The budget also calls for greater taxes on real estate capital gains and an 18% tax on mobile phones, textile, and leather goods.
