On June 11, Federal Minister of State for Revenue, Hammad Azhar presented the budget for the fiscal year 2019-20. The said budget is the first by PTI government lead by Imran Khan. The 7,036 billion budget with the tax plan of 1.405 trillion, is in line with the agreements with International Monetary funds’ bailout packages.
As understanding, the technicalities and the difficult financial terminology are difficult for common men, not to mention the noise in the assembly hall. We have compiled the highlight of yesterday’s budget.
- The minimum salary is raised from 16000 to 17500Rupees.
- The Salaries of government employees from grade 1 to 16 are increased by 10 percent, while from grade 17 to 20 will see an increase of 5 percent.
- The sales tax on sugar is increased from 8% to 17%.
- The price hike will affect every food item except for chicken and eggs is increased.
- The minimum taxable salary in this budget year is 50,000 per month or 600,000 per annum.
- 1.15 trillion Rupees are allocated for defense in the budget2019. Same as it was in the last fiscal year, as the military voluntarily refused the annual increase in the budget.
- The salaries of the Prime minister and the federal cabinet will be decreased by 10%
- GST is maintained at 17%, as it was during the previous government’s tenure.
- Prices of gas, petrol, and electricity are increased.
- 13.2% tax, duty is imposed on the sugary soda drinks. Increased 2 percent from the previous tax duty of 11 percent.
- The price of every box of cigarettes is increased 10 rupees, as the sin tax is imposed on the cigarettes.
- 80 billion PKR is allocated in the budget 2019-20 for building the water reservoirs.
- 10 billion rupees are allocated for the Prime minister’s youth development program.
- In the budget 2019-20, 7579.2 billion rupees are allocated to prevent climate change
- 2,000 million for tourism and clean, green Pakistan movement.
- 190 billion rupees are allocated by the government in the budget for the ration card scheme and to provide nutritious food to the deserving children.
- 40 billion subsidies will be provided to the gas and electricity sectors.
These are some of the key points of the budget for fiscal year 2019-20. Overall, it doesn’t look promising for the common Pakistani. But during the tough times, We are facing as a nation, we should all support the government.