ISLAMABAD: Acting President Sadiq Sanjrani on Monday approved the Finance Bill 2023-24.
According to the Press wing President house, Acting President Sadiq Sanjrani has approved the Finance Bill 2023-24.
The Acting President approved the bill under Article 75 of the Constitution, it stated.
It is pertinent to mention here that the National Assembly on Sunday approved Finance Bill 2023-24 which was completely different from the one presented in the lower house of parliament on June 9, 2023.
The government has updated all the fiscal numbers on the instructions of the International Monetary Fund (IMF).
The total expenditure for 2023-24 is increased from Rs 14.460tr to Rs14.480 tr and pension estimate from Rs761 billion to Rs801bn.
Similarly, the subsidy estimate would now be Rs 1.064 tr and grants would be Rs 1.405 tr, adding as a result of all these measures, the overall budget deficit would come down, with a cushion of Rs300bn [Rs215 billion taxes and Rs 85 billion reduction in running expenditures].
The new Federal Board of Revenue target also increased to Rs 9.415 tillion from Rs 9.200 tillion on the instructions of IMF.
The new income tax rates for the salaried class has also been increased where taxable income exceeds Rs 2,400,000 but does not exceed Rs 3,600,000, the rate of tax would be Rs 165,000 plus 22.5% of the amount exceeding Rs 2,400,000.
Where taxable income exceeds Rs 3,600,000 but does not exceed Rs. 6,000,000, the rate of tax would be Rs 405,000 plus 27.5% of the amount exceeding Rs 3,600,000.
Where taxable income exceeds Rs 6,000,000, the rate of tax would be Rs 1,095,000 plus 35 percent of the amount exceeding Rs 6,000,000.
According to the amended finance bill, the government at the eleventh hour also increased sales tax (further tax) on unregistered persons to 4 percent from 3 percent to discourage supplies to unregistered retailers and distributors.
Meanwhile, there will be a 5 percent sales tax on Fertilizer, as per the finance bill 2023.
According to the Finance bill, the government has also enhanced advance tax on registration from all sorts of vehicles.
It is worth mentioning here that the State Bank of Pakistan in emergency MPC meetings has also increased policy rate by 100 pc to 22percent.
The government is trying its hard to get $1.1 billion under the ninth review of the IMF program so not only Finance minister Ishaq Dar has to change its stance but PM Shahbaz Sharif also met with MD IMF in Paris thrice in two days.
The ongoing IMF lending program is set to expire on June 30 and the Finance minister has already said that the next government will sign the new program with the IMF.
