The federal budget 2022-2023 has been tabled in the Parliament. As expected, it has come with a mixed bag. Where the government has provided tax relief, it has also levied new taxes.
- Cars up to 850cc to have tax of Rs.10,000.
- Cars from 851cc up to 1000cc to have tax of Rs.20,000.
- Cars from 1001cc up to 1300cc to have tax of Rs.25,000.
- Cars from 1300cc up to 1600cc to have tax of Rs.50,000.
- Cars from 1601cc up to 1800cc to have tax of Rs.150,000.
- Cars from 1801cc up to 2000cc to have tax of Rs.200,000.
- Cars from 2001cc up to 2500cc to have tax of Rs.300,000.
- Cars from 2501cc up to 3000cc to have tax of Rs.400,000.
- Cars of 3001cc and up to have tax of Rs.500,000.
- 2% Advance Tax proposed on Electric Vehicle (EV).
- Price of imported phones to go up due to tax levy.
- Rs.8,000 price increase on phones worth $700.
- Rs.4000 price increase on phones worth $500.
- Rs.1800 price increase on phones worth $350.
- Rs.600 price increase on phones worth $200.
- Rs.200 price increase on phones worth $30 – $100.
- Those owning more than one immoveable properties worth Rs.25 million or more will be taxed at 1% of imaginary income that will be 5% of the property. However, personal home will be exempt from this tax.
- 15% Capital Gains Tax imposed on Immoveable property held for up to 1 year.
- Capital Gains Tax will reduce 2.5% each year to zero percent after 6 years.
- Advance Tax on sale and purchase of immoveable property – 2% (Filers), 5% (non-Filers).
- Sale and purchase of property by tax filer – 2% (Previously 1%).
- Sales Tax has been reduced to ZERO on import of solar panels and their distribution.
- Income Tax (taxable income) slab has been moved up from Rs.600,000 to Rs.1,200,000 per annum.
- Energy consumers who consume less than 200 units of electricity will be given loans to buy solar panels.
- Government to provide interest free loan up to Rs.500,000 to youth. This is a great opportunity to start a small business in Pakistan.
- Air Travel – Up to Rs.50,000 duty on Club, Business and First Class.
- Budget proposes to end tax credits on IPOs, mutual funds, and insurance and pension funds.
Federal Budget 2022-23: Pros and Cons
- Pakistan is an agrarian economy. In the budget, the government has proposed no custom duty on agriculture machinery. This is a welcome step.
- Similarly, a fixed tax rate regime has been proposed for small retailers based on their electricity bills. This is also a positive step.
- However, the elephant in the room is still there – subsidies. In the present budget, a large sum of subsidy to the tune of Rs.699 Billion has been proposed.
- It is worth reminding our readers that in the federal budget 2020-21, the then government subsidized the economy by Rs.450 Billion. The next year, 2021-22, this amount went up to Rs.660 Billion and now it is Rs.699 Billion. So, the subsidies keep going up.
Will this affect Pakistan’s negotiations with the IMF? And what do you make of this budget? Let us know in the comments section.
Importing solar energy is a positive step
I am a salary person
Plz make a budget according to our salaries
How to survive below 50k salary person
I request plz think about poor salary person
Budget 2022-23, is good, under the present IMF, negotiations going on, political turmoil, Clarity is required regarding import of Agricultural Tractors in CBU conditions, agricultural equipments, solar panels, and increase in salaries, from 25000/ currently to Rs.40000/ because of inflation. EV advance tax 2% on small vehicles, if imposed will discourage, new importers, due to increase in price.