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Budget FY18 – Salient Features

The salient features of 2017-18 budget are as follows

  • Budget outlay is Rs4.75 trillion
  • Rs 1.001trillion has been set for development expenditure
  • Minimum wage has been increased from 14,000 to 15,000
  • Total tax revenue target for the upcoming year is Rs4.33trillion, out which FBR is directed to collect Rs4.01trillion.
  • Tax breaks for Agriculture, Textile and IT sectors
  • Rs 121billion allotted for 5.5 million under BISP

Industrial

  • Schemes of zero rates to prolonged for textiles and leather sectors
  • Cotton hedge trading to be introduced to promote textiles, Brand Development Fund to be created
  • Business to Business, Business to Customer communication to be fastened by launching an Online Portal for textile trading

Taxes

  • Taxes target to raise them to 15% of the GDP
  • Corporate Sector to witness a decrease of rates form 35% to 30%
  • Islamic Banking institutions to be taxed on similar levels as Commercial banks
  • Commercial import of clothing to be taxed at 6pc
  • taxes on car registrations have been cut on lowest three categories

Financial Sector

  • 8billion allocated for loans to low income individuals by Microfinance Institutions
  • Withholding taxes on branchless banking to be eliminated
  • Banking transactions to continue incurring withholding tax

Energy Infrastructure Development

  • A total sum of Rs 401billion to be allocated for energy projects
  • Dasu Hydel – Rs 54billion
  • 2 LNG Projects – Rs 70billion
  • Diamer Bhasha – Rs 21billion
  • Neelum Jhelum – Rs 19billion
  • Tarbela IV – Rs 16.4billion
  • Jamshoro plant – Rs 16.2billion

Roads and Highways

  • Rs 320billion to be allocated to Roads and highways (NHA)

Infrastructure

  • Pakistan Development Fund to be set up
  • Overseas Pakistanis to be incentivized to invest in Infrastructure of Pakistan

Agriculture Sector

  • Rs1.001trillion worth of loans to be given out in the upcoming year
  • Fertilizer subsidized
  • Prices of Urea bags to be lowered to Rs1400
  • SBP to digitize land record management systems to help loan facilitation
  • Tube wells will receive cheap electricity with the help of subsidies.
  • Agriculture set to receive loans at 9.9% from 1st July, 2017
  • Custom duty and sales tax to be abolished on imports of Agriculture sector
  • A target of 9.9% growth for agriculture has been set for the next year
Posted on: 2017-05-26T20:40:00+05:00
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