Published On: Tue, May 23rd, 2017

Pakistan Fiscal budget 2017-18 expected on May 26

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Pakistan Fiscal budget 2017-18A summary has been sent to President Mamnoon Hussain suggesting that the National Assembly and Senate sessions should be summoned on May 24 and 26, Prime Minister also suggested the President to present Pakistan Fiscal budget 2017-18 in these sessions. A request has also been sent to summon joint session of both houses on June 1st, this will be the 4th address of the President since his election in September 2013.

The Finance Minister Ishaq Dar is expected to make budget speech in the National Assembly on May 26 and present the budget documents before the Senate. The Public-Sector Development Programme (PSDP) for 2017-18 and Economic Survey 2016-17 drafts have been finalized as well.

According to inside reports the government has decided to increase the salary and pension of government employees, however, the rate of increase is yet to be decided.
As per information there are no reliefs expected from the budget unless Prime Minister intervenes during meeting after his visit from Riyadh.

No new tax will be imposed in the budget, adding that the focus is on the rationalization and reverse cascading of tax rates. Duties and taxes will be brought down on raw materials in order to provide incentives to the local industry.

Tax officials have conducted meetings with representatives of various sectors of the commerce industry in the last two days. The representatives submitted detailed summary of seeking amendments in tariffs, duties and taxes based on the proposals from stakeholders.

Tax officials in a briefing with Dar have concluded that the government will continue with the zero-rating of five sectors – textile, leather, sports, carpet and surgical. A few more sectors will also be considered in the zero-rating regime – rice milling and processing, fish packaging and processing, meat and meat processing and pharmaceutical.

A major relief in taxation is expected for the stock market. A tax credit of up to four years, against the existing provision for two years, may be allowed to attract new listings on the stock exchange. The withholding tax rate on commission and stock exchange services will also be reduced this year.

Another proposal is to enhance the exemption threshold to Rs500,000 from the existing Rs400,000 for the salaried class.

It said tax officials are also working on another proposal to change the definition of a resident person. In case the government agrees to the proposal, it will be binding on all nationals to disclose their assets abroad.

Another proposal is to enhance the limit of the probing of tax details of a filer up to 10 years in backdates. Currently, officials can only probe tax details up to five years in the case of return filers. For non-filers, the probe can be made up to 10 years.

The Federal Board of Revenue wants to reduce duties on cigarettes on the recommendation of two major players, although the health ministry demands a further increase in rates.

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- An enthusiast working in Dubai as an Assistant Operations Manager. Writing about Pakistan and the latest happenings, trends around the globe is my passion. A dreamer, learner and a major foodie.