KARACHI – The federal government is set to present Rs14.5 trillion deficit budget for the fiscal year 2023-24 as it got the cabinet’s final nod.
The FY24 budget is the election year’s budget and the government is aiming to maintain a balance between IMF suggestions and providing relief to inflation-weary people.
Here’s a number of taxes that could affect you after this year’s budget
Super Tax – Petroleum Development Levy
The indirect tax dubbed as super tax is poised to help the state accumulate funds under the head of tax collection and cut down the budget deficit.
Reports suggest surge in the Super Tax on corporates and petroleum development levy from the current upper limit of Rs50 per litre.
Tax on Reserves/Bonus Shares
Sharif’s government has recommended a 5percent tax on bonus shares. The proposal could push firms to issue bonus shares in the current FY to avoid taxation.
Piles of new taxes on Non-Filers
In another desperate bid to rake in funds, Pakistani government mulls increasing tax rates for non-filers.
Income Tax was said to be among crucial taxes for salaries class as earlier government proposed cutting income taxes but gone are the days as federal government is likely to focus on increasing indirect taxation.
Tax on corporate reserves
Federal authorities proposed advance tax on the undistributed reserves of both listed and unlisted companies. Despite opposition, the government can implement it to cut down deficit.
Tax on exporters
Officials advised government to tighten noose on exporters that are not bringing foreign currency within a specified time period.
Bids to promote cashless payments at fuel pumps
Tax reforms authorities recommended government that petrol stations across the country should not take cash payments for PoL purchases.