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Featured Finance Minister Shaukat Tarin presents budget for FY2021-22

VCheng

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Before deep pockets start the propaganda that defence budget is 80% of total budget, here are actual figures of defence budget from Budget 2021.

1373/8487 * 100 = 16.1 %

Defence budget is only 16% of total budget. Note that and pass it on.
Plus Pensions. Plus Strategic Projects. Plus whatever is spent over budgetary allocations. All necessary, of course.
 

ghazi52

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Proposal to tax internet data usage criticised as reactions to budget pour in

  • Finance Minister Shaukat Tarin announced proposals in speech earlier on Friday


Ali Ahmed
11 Jun 2021



The Pakistan Tehreek-e-Insaf (PTI) government presented its third budget with a total outlay of Rs8,487 billion on Friday.

Apart from all the figures and analysis, the budget is also a day that allows Pakistanis to give their two cents on the country's economic conditions.

Presented by the newly-seated Finance Minister Shaukat Tarin, the budget started off with usual sloganeering from the opposition members, much to the annoyance of many but something that has become a part of the speech in recent years.

“The traditional screaming and chanting inside the Parliament during the budget speech is so annoying. This trend should stop,” said journalist Wajahat Kazmi.

Members of the government lauded the measures taken in the Budget 2021-22. Minister for Maritime Affairs Ali Haider Zaidi termed it a ‘progressive budget’ and was of the view that it will benefit SMEs, non-conventional exports and will also generate mass level employment.

Meanwhile, skeptics were of the view that the budget will not bring any change in their daily lives.

Others expressed concern over the proposal to increase the tax on mobile internet usage. Former head of Digital Pakistan, Tania Aidrus, pointed out that taxing the internet further is a ‘regressive’ move, which will not help the move towards a 'Digital Pakistan'.

Pakistan targets 4.8% GDP growth in upcoming fiscal year.

In its budget proposal, the government said that in order to "reap reasonable revenue, federal excise on mobile phone calls exceeding three minutes at Rs1 per call, SMS message at Rs0.1 per SMS, and internet data usage at Rs5 per GB is being proposed. This will result into mild taxation of a broad spectrum of population."

However, reports started circulating that the 'regressive measure' could be rejected when the Finance Bill is presented in the lower house of parliament.


Meanwhile, remembering past measures, an individual congratulated former finance minister Abdul Hafeez Shaikh for ‘stabilizing and streamlining’ the economy.


Others were more critical of the government, terming the allotment of budget as ‘unfair’ and catering only to the elite.
 

fitpOsitive

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Federal budget tomorrow



APP
10 Jun 2021




ISLAMABAD: The incumbent government, led by Pakistan Tahreek-e-Insaf (PTI), is all set to present its third budget for the fiscal year 2021-22 in the Parliament on June 11 (Friday), amid the third wave of Coronavirus (Covid-19), which had affected world economies including Pakistan.

The budget will be presented by Federal Minister for Finance and Revenue, Shaukat Tarin.
The last line was : inna lillahi wa inna ilyhi rajioon. 😁
 

ghazi52

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Budget Allocation 91 Billion for water security..........


Dasu Hydropower Dam........................ 57 billion PKR
Diamer Bhasha Dam............................. 23 billion PKR
Mohmand Dam....................................... 6 billion PKR
Neelum Jehlum Hydropower Project... 14 billion PKR


1623432172621.png
 

Patriot forever

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Proposal to tax internet data usage criticised as reactions to budget pour in

  • Finance Minister Shaukat Tarin announced proposals in speech earlier on Friday


Ali Ahmed
11 Jun 2021



The Pakistan Tehreek-e-Insaf (PTI) government presented its third budget with a total outlay of Rs8,487 billion on Friday.

Apart from all the figures and analysis, the budget is also a day that allows Pakistanis to give their two cents on the country's economic conditions.

Presented by the newly-seated Finance Minister Shaukat Tarin, the budget started off with usual sloganeering from the opposition members, much to the annoyance of many but something that has become a part of the speech in recent years.

“The traditional screaming and chanting inside the Parliament during the budget speech is so annoying. This trend should stop,” said journalist Wajahat Kazmi.

Members of the government lauded the measures taken in the Budget 2021-22. Minister for Maritime Affairs Ali Haider Zaidi termed it a ‘progressive budget’ and was of the view that it will benefit SMEs, non-conventional exports and will also generate mass level employment.

Meanwhile, skeptics were of the view that the budget will not bring any change in their daily lives.

Others expressed concern over the proposal to increase the tax on mobile internet usage. Former head of Digital Pakistan, Tania Aidrus, pointed out that taxing the internet further is a ‘regressive’ move, which will not help the move towards a 'Digital Pakistan'.

Pakistan targets 4.8% GDP growth in upcoming fiscal year.

In its budget proposal, the government said that in order to "reap reasonable revenue, federal excise on mobile phone calls exceeding three minutes at Rs1 per call, SMS message at Rs0.1 per SMS, and internet data usage at Rs5 per GB is being proposed. This will result into mild taxation of a broad spectrum of population."

However, reports started circulating that the 'regressive measure' could be rejected when the Finance Bill is presented in the lower house of parliament.


Meanwhile, remembering past measures, an individual congratulated former finance minister Abdul Hafeez Shaikh for ‘stabilizing and streamlining’ the economy.


Others were more critical of the government, terming the allotment of budget as ‘unfair’ and catering only to the elite.
Budget Allocation 91 Billion for water security..........


Dasu Hydropower Dam........................ 57 billion PKR
Diamer Bhasha Dam............................. 23 billion PKR
Mohmand Dam....................................... 6 billion PKR
Neelum Jehlum Hydropower Project... 14 billion PKR


View attachment 752489
 

Meengla

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Trillions and Billions are spoken like nothing in both America and Pakistan alike! In America of just 2-3 decades ago, 'the millionaire next door' was a big thing, as was a 'Karore-pati' in Pakistan. No so anymore. My job at the University of Karachi in early 1990s was Rs. 2000/month and that went quite a way meeting some expenses. And the first budget presented by the Benazir Bhutto govt after the 1988 election had promised Rs. 2 billion for the welfare of the people to which the Opposition politicians didn't believe that the extra Rs. 2 billion could be available in Pakistan then!
How times have changed!
Having said this, I think every Pakistani should be proud that Pakistan fought off the Covid scare and these budgetary numbers, even if they might be somewhat exaggerated, are still stunning when compared with so many of the world economies which have actually contracted. Kudos!
 

ghazi52

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What some of the budget measures mean
  • Business Recorder helps break down some of the proposals that may impact you


BR Web Desk
11 Jun 2021



1623432446377.png




When all is said and done, not every budget measure impacts everyone directly. But almost all of them have a trickle-down effect on every Pakistani. Here are Business Recorder’s picks of some features of Budget 2021-22 that have stood out at first glance, and are apart from the usual allocation numbers.

- Federal excise duty proposed on internet data usage at Rs5 per GB.


Many have criticised the proposal, and it is likely to be removed before the budget is implemented from 1 July.

- No change in tax rates for salaried class individuals.

Contrary to earlier belief that the salaried class will get a ‘relief’, they have to be satisfied with having no new taxes imposed on their monthly incomes.

- Removes WHT on bank transactions.

This comes as a positive for filers of income tax returns, and is likely to help traders and businesspersons.

- Federal excise duty to be removed from small cars with engine capacity up to 850cc. Reduced rate of sales tax at 1% on local supply of electric vehicles.

This is likely to bring the prices of small cars down. In the case of electric vehicles, we will have to wait and watch when Pakistan starts producing them locally.

- Tax on the so-called ón’ money on vehicles, if vehicle is disposed without registration, is to be retained.

This proposal is not going to sit down well with car dealers who rely on early deliveries to make a profit.

- Reduction in threshold of monthly electricity bill for withholding tax on electricity consumption from 75,000 to 25,000 from domestic users not appearing on Active Taxpayers’ list.

If you are a non-filer, and your electricity bill is Rs25,000 or more, then bad news for you. This measure is meant to serve as a punishment for non-filers.

- Reduction in tax rate on capital gain tax on disposal of securities from 15% to 12.5%.

One of the most keenly-awaited measure for stock market investors, and is likely to give a boost to the KSE-100 Index.

- Reduction in tax liability by 25% for women entrepreneurs.

This is being seen as a positive for women's inclusion in the formal sector.

- Exemption from tax on import of books and agriculture equipment.

Good news for those who want to read books, and import agricultural equipment. We wonder why the two exemptions were clubbed together in one sentence.

- Removal of requirement of updating tax profile.

This requirement, when first introduced, drew a lot of criticism. However, all you needed to do was update your profile on the FBR website, just like you would on a social media page. Nonetheless, it has been removed.

- Deletion of withholding tax on domestic & international air travel.

This is likely to bring the cost of travel down. How much of it is passed on by the airline to the consumer is another matter.
 

ghazi52

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Key announcements during budget speech

  • Rs900 billion allocated for federal PSDP
  • Minimum wage has been increased to Rs20,000
  • Pensions and federal government employees' salaries will see a 10pc increase
  • Rs12 billion allocated for agriculture sector
  • Rs66 billion to be provided to the Higher Education Commission for education programmes, and Rs44 billion under the development fund
  • Rs118 billion for power distribution
  • Rs61 billion for Viability Gap Fund
  • Rs14 billion for Climate Change mitigation projects
  • $1.1 billion for vaccines procurement
  • Rs100 billion for Covid-19 Emergency Fund
  • Rs12 billion special grant for Sindh
 

ghazi52

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Salient features of Budget 2021-22

  • Pakistan moves into the next fiscal year with a growth target of 4.8% in mind
  • Several proposals hailed as positive for economy


BR Web Desk
11 Jun 2021




In an attempt to generate stimulus and offer enough incentives that would help it reach a growth target of 4.8%, the federal government unveiled its third budget on Friday.
Here are the salient features:



• GDP growth target has been set at 4.8%
• Total budget outlay set at Rs8,487 billion
• National PSDP outlay set at Rs2,102 billion
• Federal PSDP outlay set at Rs900 billion for FY22, up 43% year-on-year compared to Rs630 billion in FY21
• Large-scale manufacturing to grow by 6.0%
• Debt repayment to cost Rs3,060 billion
• Government sets NFC distribution target at Rs3,412 billion
• FBR's tax collection target set at Rs5.8 trillion for FY22 compared to PKR 4.7 trillion in FY21.
• An amount of Rs12 billion set aside for emergency agriculture program to ensure food security
• Total subsidy expenditure for FY22 stands at Rs682 billion
• No new tax implied on salaried class
• Minimum wage to be increased to Rs20,000
• Interest-free loans upto Rs500,000 to be provided to help alleviate poverty concerns
• Foreign auditors to be selected for E-audit system
• Karachi's transformation plan will be allocated Rs98 billion from the PSDP
• Reduction in rate of capital gains tax on disposal of securities from 15% to 12.5%
• Defence spending to be Rs1.37 trillion in the upcoming year
• Federal government employees' salaries and pensions would be increased by 10%
• Federal excise duty proposed on internet data usage at Rs5 per GB
• Tax on the so-called ón’ money on vehicles, if sold without registration, is to be retained
• Reduction in tax liability by 25% for women entrepreneurs.


• As per a brokerage house, the budget announcement is positive for the following sectors:

Flat Steels (cut in HRC duties),
Pharmaceuticals (cut in duties on import of APIs),
IT (Zero Rating),
Textiles/Consumers/Foods (reduction in duties) and Refineries (exemption on tax on BMR).


It was deemed neutral to positive for:

Power (allocation of subsidy towards PHPL and IPPs), Banks (removal of WHT for non-filers),

Cements and Rebar Steel (higher allocation for development expenditure)

Autos (reduction in duties on car below 850CC).
 

ghazi52

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Government sets minimum wage at Rs20,000


Govt unveils people-friendly budget as no new tax imposed on salaried class, economic growth target set at 4.8%


Our Correspondent
June 11, 2021


Unveiling the federal budget for FY22, Finance Minister Shaukat Tarin kicked off the national assembly session by recalling the state of the economy that the Pakistan Tehreek-e-Insaf (PTI) government had received when it came into power.

He said that the current account deficit was at a historic high of $20 billion but the government through its prudent policies managed to drag the economy out of trouble.

He said that the budget deficit was at a high of 6.6% and the foreign exchange reserves were at a critical level of $10 billion at the end of PML-N’s tenure. However, the situation has now improved.

He said that the responsibility to fix the economy fell to the PTI government as the previous government had hampered the economy by taking loans and artificially was fixing the dollar at Rs104 for five years.

Moving on, he said the biggest challenge to the government was to avoid a financial default.
Highlighting the success of the PTI government, the minister said they had managed to bring the current account from deficit to a surplus of $800 million. He said that the economy was on the road to stabilisation and growth.

Talking about the Covid-19 outbreak, he said that the government had managed the situation well and saved the economy from crisis.

From March-May we faced the third crisis but through timely action, we managed to come out of this situation.

Talking about agriculture, the minister said that the agriculture sector witnessed historic growth.
Tarin claimed that Pakistan has now entered the growth club. “Economy is on the way of growth.”

Pakistan faced two faceted problems, however, the country managed to remain protected from default.

During the outgoing fiscal year, the country witnessed historic growth in the agriculture sector. Meanwhile, the large-scale manufacturing sector recorded growth after many years and posted 9% growth during FY21, he added.

All crops showed growth, he added.

And services sector including transport, banking, insurance recorded significant growth compared to previous years.

Tarin highlighted that poverty reduced and jobs were created.

“We succeeded in fighting grave consequences of Covid-19, despite the severe third wave which created more havoc compared to the first two waves,” he added.


PHOTO: EXPRESS



“During these tough times, we enhanced hospital resources,” the finance minister said.

The low-income segment was benefited through the Ehsaas program which provided relief to 12 million households – covering 40% of the total population.

In the next fiscal year, the government expects $29 billion in remittances, he said.

With a record-high production in agriculture, the sector contributes Rs3.1 trillion to the national exchequer.

Growth in the large-scale manufacturing sector helped create jobs accommodating people who were laid off during the pandemic.

Sharing more details, the finance minister said that the e-commerce and fintech industry is expected to steer the online job ecosystem.

During the fiscal year 2020-21, tax revenue increased and showed 18% growth as tax receipts crossed Rs4 trillion.

Exports increased by a significant 14% as a rebate, duty drawback helped the sector flourish, he added.

Earlier in 2018 when the PTI government came into power, the current account deficit was a huge challenge, but now this is also under control.

Tarin mentioned that remittances rose 25% to $29 billion during FY21.
 

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