Fiscal Budget 2019-20

[Zulfiqar]

Where is the GDP figure and growth rate figure to prove above data wrorng?

Development expense is less than half of Interest payment and less than defense budget and jut 1/7th of non planned expenditure. This is a sorry state of affairs. What development will happen with this tiny development budget figure?

Read the document and calculate the defense exp as percentage of total outlay and you will find out why Dawn was wrong. I don't do hard work for free.

About our state of affairs. Let us worry about that!

Thanks, I missed that part totally. IMHO, interest & defense expenditures should be deducted from provincial and federal budget as per formula of funds allocations.

Defense should be federal due to various issues. Int Exp should be deducted province wise wherever applicable such as circular debt related PHPL loans while considering the share of discos in total debt e.t.c

 

[Sugarcane]

ISLAMABAD (APP) - The Gross Domestic Product (GDP) is expected to pick up and grow at 4 percent during the upcoming fiscal year 2019-20, with contribution of 3.5 percent from agriculture, 2.3 percent from Industry and 4.8 percent from services sector, according to Annual Plan 2019-20 released by the government here Tuesday.

According to the plan, the growth targets are subject to risks of extreme weather fluctuations, interruptions in envisaged reforms and non-aligned monetary and fiscal policies.

However, the targets are attainable with revived agriculture sector, growth in industrial sector and pick up in private sector credit and expected competition and spill over effects of projects under China Pakistan Economic Corridor (CPEC).
Meanwhile, in the backdrop of highest-ever macroeconomic imbalances and resultant adjustment drive, the economic growth was anticipated to decelerate during the current fiscal year (2018-19), it said adding that the growth decelerated from 5.5 percent in 2017-18 to 3.3 percent in 2018-19.

Two important commodity producing sectors including agriculture and manufacturing witnessed negative growth due to certain reason.
The Annual Plan targets workers’ remittances to reach the level of US$24 billion during the year 2019-20 while the current account deficit is projected to be contained at 3 percent of GDP.

On fiscal, monitory and Capital Market development side, the government would initiate various reforms for fiscal consolidation during 2019-20, it said adding that the State Bank of Pakistan has started tight monetary policy during FY18 and continued this during FY19.

The average inflation during 2019-20 is projected around 8.5 percent while the capital market is expected to remain vibrant during 2019-20 as a result of the measures to be adopted by the Securities and Exchange Commission of Pakistan.

The exports are projected to reach at $26,187 million in 2019-20 from $24,656 million estimated for FY 2018-29 whereas on account of higher growth trajectory, imports are expected to marginally increase by 0.8 percent and reach the level of $53,664 million in 2019-20 from estimated total of $53,248 million for 2018-19.

The Current Account Deficit (CAD) is projected to be contained at $8,312 million (3% of GDP) during 2019-20 as against estimated deficit of US$13,179 million (4.7% of GDP) by the end of outgoing fiscal year

http://dunyanews.tv/en/Business/495500-Annual-Plan-predicts-4-percent-growth-in-upcoming-Fiscal-Year

Looks like Dawn is dishonest in reporting again. It should be classed as untrustworthy source on PDF.

 

[Sugarcane]

http://dunyanews.tv/en/Pakistan/495499-Complete-Budget-2019-20-speech-Pakistan

Do anybody knows details about this change? Does this mean that if I buy from registered retailer, get proper invoice than I can get 5% tax refund in return filing?

 

[I.R.A]

http://dunyanews.tv/en/Pakistan/495499-Complete-Budget-2019-20-speech-Pakistan

View attachment 564768
Do anybody knows details about this change? Does this mean that if I buy from registered retailer, get proper invoice than I can get 5% tax refund in return filing?

"The customers of Tier-I retailers are proposed to be entitled to receive a cash back of upto 5% of the tax involved in manner and extent as may be prescribed by the Board."

This falls under sales tax and cash refund would be of sales tax not income tax. Most probably.

 

[VCheng]

There will be some agitation but it wont be as wide spread as what we saw in PMLN time. This is what i feel!

I hope there is no agitation since the country can ill-afford the disruption and economic losses.

They dont have mass street power
PTI had that and it exploited it to the max

Please see the above.

However, expect some considerable agitation in Faisalabad, Lahore, Sialkot, Karachi, Multan starting this week.

That would be a mistake.

 

[Sugarcane]

"The customers of Tier-I retailers are proposed to be entitled to receive a cash back of upto 5% of the tax involved in manner and extent as may be prescribed by the Board."

This falls under sales tax and cash refund would be of sales tax not income tax. Most probably.

I know it's about Sales Tax - However, it's not clear that refund will be on spot or should be via return filing.

 

[Verve]

Check from 27:40 for property

GST on industries on all Sales and then refund for export sales only is good. That's how it should be.

All GST enrolled businesses should submit quarterly input and output GST and get refunds or pay accordingly.

What's the Revenue/Sales threshold in Pakistan for GST enrollment?

 

[Zibago]

I hope there is no agitation since the country can ill-afford the disruption and economic losses.



Please see the above.



That would be a mistake.

They have to posses an item to use it
They dont have street power

 

[VCheng]

They have to posses an item to use it
They dont have street power

I hope you are correct.

 

[Zibago]

I hope you are correct.

Judging from outside can ruin one,s perspective
As a resident I can say with confidence that I know so

 

[VCheng]

Judging from outside can ruin one,s perspective
As a resident I can say with confidence that I know so

That is good, I will wait and see what happens next in this regard.

 

[zulu]

Need to extract that data from this problem is mostly GST covers on things peoples buy/services/imports but GST net of sellers is so small if they put them under the net its would be 10 fold .Economy of Pakistan one basic tragedy middle economy section total out of it
www.sbp.org.pk/ecodata/tax.pdf

GST on industries on all Sales and then refund for export sales only is good. That's how it should be.

All GST enrolled businesses should submit quarterly input and output GST and get refunds or pay accordingly.

What's the Revenue/Sales threshold in Pakistan for GST enrollment?

 

[Verve]

Need to extract that data from this problem is mostly GST covers on things peoples buy/services/imports but GST net of sellers is so small if they put them under the net its would be 10 fold .Economy of Pakistan one basic tragedy middle economy section total out of it
www.sbp.org.pk/ecodata/tax.pdf

I find it criminal to legislate GST in such a way that end retailer is the one paying it. Thankfully they've undone that now.

It's better that biggest chunk of GST is collected from the fewer manufacturers and wholesales instead of retailers. Far less administration to collect tax.

There should be a threshold on retailers being GST registered. Small business below a certain revenue threshold shouldn't need to be GST registered.

 

[zulu]

Sir just today bought an AC from Saddar Market every shop selling so much but no one under GST net all we got simple hand written paper.Why FBR not cracking down on them they always threaten to go on strike tell them "be my guest """khud 10 din shop band rahy gi tu hosh aa jayee ga.I m really not worried about budget if they implement new framework it would be helpful for economy on long run

I find it criminal to legislate GST in such a way that end retailer is the one paying it. Thankfully they've undone that now.

It's better that biggest chunk of GST is collected from the fewer manufacturers and wholesales instead of retailers. Far less administration to collect tax.

There should be a threshold on retailers being GST registered. Small business below a certain revenue threshold shouldn't need to be GST registered.

 

[Verve]

Sir just today bought an AC from Saddar Market every shop selling so much but no one under GST net all we got simple hand written paper.Why FBR not cracking down on them they always threaten to go on strike tell them "be my guest """khud 10 din shop band rahy gi tu hosh aa jayee ga.I m really not worried about budget if they implement new framework it would be helpful for economy on long run

Sir, the question is: are these shops paying GST to the supplier? If not, then the supplier/wholesaler/manufacturer should be charged GST instead.

As per my understanding, GST rule previously was that it's collected from the retailer. And now it will be collected from manufacturer.