linktax.pk

27/06/2024

The Pakistan federal budget for the fiscal year 2024-25, presented by Finance Minister Muhammad Aurangzeb, outlines several key financial measures and allocations. Here are some of the notable highlights:

1. Total Expenditure and Revenue:
• The total federal expenditure is set at Rs. 18.87 trillion.
• The government aims to enhance tax revenue and reduce non-development expenditures to narrow the fiscal deficit .
2. Defense and Development:
• The defense budget has been increased by 17% to Rs. 2.12 trillion .
• Significant funds have been allocated for ongoing and new development projects, including Rs. 23 billion for IT projects and Rs. 4 billion to promote electric bikes .
3. Tax Reforms and Adjustments:
• A new capital gains tax of 15% on filers and 45% on non-filers irrespective of the holding period.
• Exporters will now be under the normal tax regime.
• General Sales Tax (GST) on textile and leather products sold by Tier-1 retailers has been increased from 15% to 18% .
• Sales tax on computers and laptops has doubled from 5% to 10%, and on smartphone imports valued above $500 to 25% .
4. Employee Salaries and Pensions:
• There is a proposed salary hike of 15-20% for government employees, along with increased monetization for officers in higher grades.
• An increase in the minimum wage from Rs. 32,000 to Rs. 36,000 has been announced .
5. Social and Economic Initiatives:
• The Punjab government has announced free solar systems for the public.
• Other measures include a 5% Federal Excise Duty on new residential and commercial properties, and withdrawal of tax exemptions on imported hybrid cars .

These measures are part of a broader strategy to stimulate economic growth, which is projected to accelerate to 3.6% in the upcoming fiscal year, while also managing inflation and external debt pressures .

09/01/2024

09/01/2024

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14/02/2023

Big businesses make case for renegotiating NFC award

Big businesses have demanded that the Nation finance Commission (NFC) award, which is basis for resource distribution among federal and provincial government, should be renegotiated to enable the federation to manage its fiscal account.

Accounting for Rs2tr under non-tax revenue, total funds available with the federation amount to Rs4.5tr on Day 1 of the new fiscal year.

09/02/2023

Tax ratio drops to 4.4 pc in first half

Fiscal deficit reaches unprecedent Rs1. 7tr.provinces turn in Rs101bn cash surplus against Rs800bn

Amid fiscal challenges, Pakistan's tax-to-GDP ratio dropped further by 0.4pc in the first half (July to December) of the current fiscal year to 4.4pc from 4.8pc of the same period last year According to half- yearly data on fiscal operation released by the Ministry of Finance on Wednesday, the non-tax revenue remained unchanged at 1.1pc of GDP in the first half of the year and stood at Rs967bn, supported by a massive Rs378bn from the state Bank of Pakistan and a record Rs378bn from the state bank of Pakistan and a record Rs178bn of petroleum development levy on oil products.

08/02/2023

Grey market loses lustre as banks offer higher rates

Dollar price in Kabul market plunges to Rs273

For the first time the dollar rate against the rupee in the grey market fell significantly lower than that of the opening on Tuesday, reflecting a loss of attraction for dollars smuggling to Afghanistan.

The dollar sold at Rs273 in the grey market. The situation has changed after the free- floating of the exchange rate in Pakistan. The dollar rate in interbank appreciated by 98 paisa to Rs276.28 from Rs275.30 a day before.

07/02/2023

Deposit 50pc supper tax in seven days SC order

Verdict will boost FBR’s collection to bridge shortfall in FY23

The supreme Court on Monday modified an interim order of the Lahore High Courts (LHC) and directed wealthy taxpayers to deposit their 50 percent due super tax directly with the Federal Board of Revenue (FBR)within one week.

A three-member bench, headed by Chief Justice of Pakistan Umar Ata Ban dial, took up the FBR plea against the impugned interim order which had stayed the recovery proceedings from high earning tax-payers.

06/02/2023

If Pakistan defaulted …

The currency would have drastically lost value since too much rupee would have been chasing too few goods. When Pakistan’s dollars reserve fell below $5 billion in December, and its credit default risk had reportedly become too high for analyst to ignore the possibility of an imminent default, the central bank made a policy decision to allow the opening of import letter of credits (LC) in a staggered manner to ensure spreading of the dollar reserve over a longer period of important time.

03/02/2023

Exports fall over 15pc in January

The country’s exports shrank for fifth month in a row dropping by 15.42 percent year-on-year to $2.21 billion in January raising fears about the closure of industrial units especially textile and clothing across the country.

One of the main reasons behind the falling export was the exchange rate instability. The discontinuation of duty drawbacks local taxes and levies by the government has also created liquidity issues for the export sector.

02/02/2023

Rupee slips against dollar

The dollar price slightly appreciated in the interbank market on Wednesday, indicating that the exchange rate can find a sustainable level but the market lacks clarity given that foreign exchange reserves have dropped to a critically low level.

Exchange companies reported that the dollar was available at a price of Rs275 against the rate of Rs276.50 a day ago, showing a decline of Rs1.50.