The federal budget will be presented on June 11, with the possibility of scrapping 20 billion tax breaks

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The federal budget will be presented on June 11, with the possibility of scrapping 20 billion tax breaks

ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) fourth finance minister Shaukat Tareen will present his first budget in Parliament on June 11.

Salary increase

The total volume of the budget for the next financial year will be around Rs. 8000 billion, the salaries of the employees are expected to increase by ten to fifteen percent, the size of the economy will reach Rs. The economic growth rate will be 4.8%, Rs 3,060 billion will be spent on loans and interest.

Tax exemptions are likely to be abolished for various sectors. Tax exemption abolished Income tax exemption of more than Rs 20 billion is likely to be abolished in the next budget.

There are proposals to abolish income tax rebates of Rs 4 billion on salaried class medical allowances, corporate agricultural income profits, and businesses in the tribal areas. Read also: Budget 2021-22 The target for tax collections is set at Rs 5,829 billion.

Budget deficit

According to FBR sources, it is recommended to abolish income tax exemption for social security institutions, LNG terminals, and operators. It could be Rs. The defense budget will be Rs. 1400 billion and the annual development program will be Rs. 900 billion.

The development budget of the provinces will be Rs.1000 billion, Rs.530 billion can be set aside for subsidies.

The defense budget is likely to be more than Rs 1,400 billion. Revenue In the next budget, the tax revenue could be Rs 5820 billion and non-tax revenue Rs 1420 billion.

Amnesty for the construction sector is likely to be extended. With the consent of the IMF, the construction amnesty scheme is likely to be extended to September or December 2021.

Read more: Indonesia Barred Citizens From Paying Hajj

Under the ordinance, the period can be extended by 3 or 6 months. 350 projects worth Rs 140 billion were registered under the scheme for the construction sector and the deadline for this scheme is June 2021.

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