Wednesday , September 18 2019
Breaking News
Home / Islamabad / Hammad Azhar presents Budget 2019-20
Hammad Azhar presents Budget 2019-20

Hammad Azhar presents Budget 2019-20

ISLAMABAD: Minister of State for Revenue Hammad Azhar announced that the budget recommends a federal excise duty of Rs5,200 on every 10,000 cigarettes be imposed.

The minister for revenue says that the budget recommends that cars of upto 1000 CC see a federal excise duty of 2.5 per cent.

It is further recommended that cars which are more than 2000 CC in capacity see a federal excise duty of 7.5pc imposed.

Increase in federal excise duty on cigarattes advised

Duties will be reduced to boost non-traditional exports

To boost non-traditional exports like wooden furniture, duties will be reduced

To save Pakistan’s forests while safeguarding the furniture industry, duty on imported wood will be reduced from 100pc to 3pc

Steel duties will also be reduced to 5pc to help razor exporters

Duties will also be reduced on several domestic goods, printing and solar panels and chemical industry

Hydrocracker plant machinery to also be exempted from duty

Medicinal ingredients will be given a 3pc import duty exemption

Textile machinery and parts will be exempt from duties

Textile machinery and parts will be exempt from duties. Duty will also be lowered on flexible fibers and non-woven materials

Paper scrap and pulp will be exempted from custom duty as paper is an important input in the educational sector

On different types of paper, duty to be reduced from 20pc to 16pc. This will bring down prices of paper and books, and printing presses will get a boost

Sugar tax advised to be increased to 17pc

Sugar prices are likely to go up as it has been recommended that the sales tax, which previously stood at 8.5 per cent, now be increased to 17 per cent. Sugary drinks will also see an increased tax duty of 13.2 pc versus the previous figure of 11.25 pc.

Tax measures

Tax to GDP ratio is 12pc right now — among lowest in world. Will be brought to 20pc

Agenda for tax reform created that will give macroeconomic stability and help future generations

This agenda is part of the government’s medium term policy framework

The government has been foregoing Rs972.4bn in tax breaks to different sectors

Likewise, the present customs duty regime is losing the country Rs20bn in annual revenue

Govt giving final shape to a corrective customs tariff that will be implemented phase wise