Ijaz Kakakhel Islamabad
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday addressed the National Assembly (NA) to wind up the Federal Budget 2024-25 debate.
“Budget 2024-25 is based upon a homegrown reform plan under which the government wants to pull the country out of the current economic situation and for this economic reforms are needed,” said Aurangzeb as he began the discussion. He said the government aims to increase the tax-to-GDP ratio to 13 per cent, pursue the privatisationprogramme, and implement SOE and energy sector reforms.
The finance minister said the government intends to prioritize the private sector, correct the incentives and shift from a government-led to market-driven economy. “On the income tax front, before blocking mobile SIMs and banning international travel for non-filers, they will be provided an opportunity of a personal hearing. “Under Section 116, an explanation will be included in the declaration of foreign assets and assets of spouse, in case of spouse being dependent on the taxpayer.
He said stationary items will continue to be exempted to sales tax – contrary to the earlier announcement when GST was enhanced on this head. Moreover, the current reduced sales tax rate will continue to apply on HEVs (Hybrid Vehicles) mentioned in Schedule 8 and Serial No 73. “Under EFS 2021, zero rating on local supplies will continue,” he said.
These changes come after the Senate on Monday made 128 recommendations to the National Assembly for legal changes and amendments in the Finance Bill, 2024, including the restoration of certain exemptions and reduced tax rates on essential commodities, goods, and services.
The Senate sent the proposals to the National Assembly on the recommendation of the Standing Committee on Finance. The Standing Committee on Finance finalized the recommendations after a daylong session of the committee held at the Parliament House.
