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Asad Umar presents amended finance bill for 2018-2019
By Our Correspondent
Published: September 18, 2018
SHARE TWEET EMAIL
ISLAMABAD: Finance Minister Asad Umar on Monday presented an amended finance bill for the year 2018-2019 on the floor of the National Assembly.
Addressing fellow parliamentarians, Umar said that the country is engulfed in a severe economic crisis, emphasising that the deficit can reach a mark of 7.2% if present conditions prevailed.
“Rupee depreciation has hit the common man most,” he added.
Umar stressed upon the importance of pulling the country out of its debt burden and said that it is the new government’s top priority.
Asad Umar rejects concessions for former Sindh governor
He warned the import cover at present is less than two months, which may build pressure on the rupee.
There was a loss of Rs450 billion in the power sector in one year, Umar informed the Lower House. This loss can climb to Rs2.9 trillion if not curbed.
He asked for recommendations from fellow parliamentarians and assured that they will be deliberated upon.
“Increasing employment, enhancing economic stability and supporting imports are our top priority. Circular debt has reached Rs1,200 billion. We will have to make tough decisions to cope with the current financial conditions.”
The finance chief also said pensions will increase by 10%.
“Foreign loans have risen from Rs60 billion to Rs95 billion.”
Lamenting the current foreign debt, Umar explained that when the rupee depreciates, the gas rates also fall simultaneously.
“It’s the time to take decisions.”
Recounting current hurdles the government has to face, Umar said that all steel mills have been shut and all loans of the national flag carrier have to be paid by the federation.
Umar said, “Improvement will not come from merely going to the IMF but it will come when there is employment, improvement in the agriculture sector and increase in exports.”
He said they had to take a lot of measures to improve governance, electricity and gas issues.
“But for everything to take effect, it will take time, and time is something we don’t have. Hence we have to take emergency measures.”
The minister also said, “We have increased the burden on affluent people.”
PBC urges Asad Umar to focus on ‘Make in Pakistan’
Highlights of the revised Finance Bill
The key points of the PTI mini-budget: protect the poor, support farming, industry
September 18, 2018
Samaa Web Desk
Federal Minister for Finance, Revenue and Economic Affairs Asad Umar presented a mini-budget, the government’s plan for how much money it will earn and where it will spend it in the ongoing financial year.
The mini-budget is a revised version of the budget presented by the former government of PML-N. It was presented in the National Assembly on Tuesday.
Two points stand out. The government wants to protect low-income and poor people and has tried to pass on new taxes to those who earn more. Secondly, it wants to support agriculture and industry and make them competitive in exports so they create jobs and earn foreign exchange.
Key points:
Overall
The budget deficit (loss), because the government will spend more than it will earn, will balloon by Rs890 billion to Rs2.7 trillion or 6.6% of GDP. This is its highest-ever level, compared to what the previous budget stated (Rs1.89 trillion or 4.9% of the GDP).
The government’s revenue will drop Rs350 billion and expenses will increase Rs250 billion, according to the revised estimates.
Development (schools, clinics, roads)
The government has raised the development budget 10% from Rs661 billion to Rs725 billion.
Rs50 billion will be spent on Karachi projects
CPEC projects will continue without any cuts
Taxes on income
There will be no income tax if your annual income is Rs400,000 or less.
There will be a fixed tax of Rs1,000 if your annual income is Rs800,000 or less.
There will be a fixed tax of Rs3,000 if your annual income is Rs1.2 million or less.
If your annual income is more than Rs1.2 million, but less than Rs2.4 million, you will pay 5% of the amount that exceeds Rs1.2 million.
If your annual income is more than Rs2.4 million, but less than Rs3 million you will pay Rs60,000 plus 15% of the amount above Rs2.4 million.
If your annual income is more than Rs3 million, but less than Rs4 million, you will pay Rs150,000 plus 20% of the amount above Rs3 million.
If your annual income is more than Rs4 million, but less than Rs5 million, you will pay Rs350,000 plus 25% of the amount above Rs4 million.
If your annual income is more than Rs5 million, you will pay Rs600,000 plus 29% of the amount above Rs5 million.
If your annual income is more than Rs5 million, you will pay Rs600,000 plus 29% of the amount above Rs5 million
Tax on non-filers
The government will charge 0.6% tax on non-cash transactions above Rs50,000 (up from 0.4%).
But non-filers can buy new cars and property because they government has removed the blanket ban, which barred non-filers from purchasing new assets.
Items which will become expensive
Duties on 300 luxury items will go up.
These include luxury cars (1800 cc and above), imported food (think cheese) and high-end mobile phones.
Duties on cigarettes will also go up.
Subsidies
The government will give Rs100 billion as a subsidy in the petroleum tax, which means they will now collect Rs200 billion in petrol tax as opposed to Rs300 billion suggested previously.
Farmers will get subsidies of up to Rs7 billion on urea (fertilizer) purchases.
Punjab-based industries will get gas at subsidized rates as Rs44 billion have been allocated.
The government has also given a Rs4.5 billion subsidy for the construction of 8,276 low-cost houses for the labour class.
The government is introducing a health card for residents of Islamabad and FATA. It will provide a subsidy of Rs540,000 per family.
The government has removed duties from 82 imported items that are used in export-oriented industries and announced a Rs5 billion subsidy for this purpose.
The government has increased pensions by 10% for low-income pensioners (about 85% of total pensioners).
By Our Correspondent
Published: September 18, 2018
SHARE TWEET EMAIL
ISLAMABAD: Finance Minister Asad Umar on Monday presented an amended finance bill for the year 2018-2019 on the floor of the National Assembly.
Addressing fellow parliamentarians, Umar said that the country is engulfed in a severe economic crisis, emphasising that the deficit can reach a mark of 7.2% if present conditions prevailed.
“Rupee depreciation has hit the common man most,” he added.
Umar stressed upon the importance of pulling the country out of its debt burden and said that it is the new government’s top priority.
Asad Umar rejects concessions for former Sindh governor
He warned the import cover at present is less than two months, which may build pressure on the rupee.
There was a loss of Rs450 billion in the power sector in one year, Umar informed the Lower House. This loss can climb to Rs2.9 trillion if not curbed.
He asked for recommendations from fellow parliamentarians and assured that they will be deliberated upon.
“Increasing employment, enhancing economic stability and supporting imports are our top priority. Circular debt has reached Rs1,200 billion. We will have to make tough decisions to cope with the current financial conditions.”
The finance chief also said pensions will increase by 10%.
“Foreign loans have risen from Rs60 billion to Rs95 billion.”
Lamenting the current foreign debt, Umar explained that when the rupee depreciates, the gas rates also fall simultaneously.
“It’s the time to take decisions.”
Recounting current hurdles the government has to face, Umar said that all steel mills have been shut and all loans of the national flag carrier have to be paid by the federation.
Umar said, “Improvement will not come from merely going to the IMF but it will come when there is employment, improvement in the agriculture sector and increase in exports.”
He said they had to take a lot of measures to improve governance, electricity and gas issues.
“But for everything to take effect, it will take time, and time is something we don’t have. Hence we have to take emergency measures.”
The minister also said, “We have increased the burden on affluent people.”
PBC urges Asad Umar to focus on ‘Make in Pakistan’
Highlights of the revised Finance Bill
- Rs6-7 billion subsidy has been announced to protect farmers
- Rs4.5 billion is being released to construct 8,276 homes
- The minimum pension is being increased by at least 10%
- The export industry is being given a relief of Rs5 billion in regulatory duty
- A subsidy of Rs44 billion is being given to support textile industry
- Banking transactions other than cash by non-filers to be taxed at a higher 0.6% withholding tax
- Taxes on tobacco products have been increased
- High-end cell phones will have a duty imposed on them
- Cars above 1800cc will have 20% duties imposed on them
- The tax exemption limit that had been increased from Rs400,000 to Rs1.2 million rupee is being maintained
The key points of the PTI mini-budget: protect the poor, support farming, industry
September 18, 2018
Samaa Web Desk
Federal Minister for Finance, Revenue and Economic Affairs Asad Umar presented a mini-budget, the government’s plan for how much money it will earn and where it will spend it in the ongoing financial year.
The mini-budget is a revised version of the budget presented by the former government of PML-N. It was presented in the National Assembly on Tuesday.
Two points stand out. The government wants to protect low-income and poor people and has tried to pass on new taxes to those who earn more. Secondly, it wants to support agriculture and industry and make them competitive in exports so they create jobs and earn foreign exchange.
Key points:
Overall
The budget deficit (loss), because the government will spend more than it will earn, will balloon by Rs890 billion to Rs2.7 trillion or 6.6% of GDP. This is its highest-ever level, compared to what the previous budget stated (Rs1.89 trillion or 4.9% of the GDP).
The government’s revenue will drop Rs350 billion and expenses will increase Rs250 billion, according to the revised estimates.
Development (schools, clinics, roads)
The government has raised the development budget 10% from Rs661 billion to Rs725 billion.
Rs50 billion will be spent on Karachi projects
CPEC projects will continue without any cuts
Taxes on income
There will be no income tax if your annual income is Rs400,000 or less.
There will be a fixed tax of Rs1,000 if your annual income is Rs800,000 or less.
There will be a fixed tax of Rs3,000 if your annual income is Rs1.2 million or less.
If your annual income is more than Rs1.2 million, but less than Rs2.4 million, you will pay 5% of the amount that exceeds Rs1.2 million.
If your annual income is more than Rs2.4 million, but less than Rs3 million you will pay Rs60,000 plus 15% of the amount above Rs2.4 million.
If your annual income is more than Rs3 million, but less than Rs4 million, you will pay Rs150,000 plus 20% of the amount above Rs3 million.
If your annual income is more than Rs4 million, but less than Rs5 million, you will pay Rs350,000 plus 25% of the amount above Rs4 million.
If your annual income is more than Rs5 million, you will pay Rs600,000 plus 29% of the amount above Rs5 million.
If your annual income is more than Rs5 million, you will pay Rs600,000 plus 29% of the amount above Rs5 million
Tax on non-filers
The government will charge 0.6% tax on non-cash transactions above Rs50,000 (up from 0.4%).
But non-filers can buy new cars and property because they government has removed the blanket ban, which barred non-filers from purchasing new assets.
Items which will become expensive
Duties on 300 luxury items will go up.
These include luxury cars (1800 cc and above), imported food (think cheese) and high-end mobile phones.
Duties on cigarettes will also go up.
Subsidies
The government will give Rs100 billion as a subsidy in the petroleum tax, which means they will now collect Rs200 billion in petrol tax as opposed to Rs300 billion suggested previously.
Farmers will get subsidies of up to Rs7 billion on urea (fertilizer) purchases.
Punjab-based industries will get gas at subsidized rates as Rs44 billion have been allocated.
The government has also given a Rs4.5 billion subsidy for the construction of 8,276 low-cost houses for the labour class.
The government is introducing a health card for residents of Islamabad and FATA. It will provide a subsidy of Rs540,000 per family.
The government has removed duties from 82 imported items that are used in export-oriented industries and announced a Rs5 billion subsidy for this purpose.
The government has increased pensions by 10% for low-income pensioners (about 85% of total pensioners).
