After going over it clause by clause on Wednesday, the National Assembly (NA) unanimously agreed to enact the Finance Bill, 2022, also known as the federal budget.
Similar to the previous year, there was almost no opposition to the bill’s passing.
The government moves one step closer to restarting the International Monetary Fund (IMF) program with the approval of the budget for the fiscal year 2022-2023.
The budget was presented by Miftah Ismail on June 10 with a spending plan of Rs9.5 trillion. For fear of political fallout, the government refrained from enacting unpopular tax policies. However, once the IMF requested that Islamabad take concrete steps to stabilize the economy, the administration gradually had to draw back a number of relief programs.
Today’s session, which was presided over by NA Speaker Pervez Ashraf, saw the presentation of the Finance Bill, 2022 by Minister of State for Finance and Revenue Dr. Aisha Ghous.
Pasha declared at the start of the session, which started after a delay of more than two hours, that the budget for the next fiscal year was not altered at the IMF’s request.
She insisted that eighty percent of the amendments had a direct fiscal connection. We want to tax the wealthy and help the poor, she declared.
She continued by saying that the PTI government’s agreements with the Fund were being carried out by the coalition government.
Following the state minister’s words, the NA started passing the budget measure section by clause.
During the procedure, the amendment to impose an Rs. 50 fee on petroleum goods was adopted by the lower house of parliament.
Miftah Ismail, the finance minister, responded to this by stating that there isn’t now a tax on petroleum items.
“The house has given the government authorization to charge a petroleum fee of Rs. 50 per liter on petroleum products. There is currently no hope or consideration of instantly increasing to this amount, he said.
The NA also adopted changes that will tax IT and software consulting services by 5 percent and collect sales tax from merchants via electricity bills.
Additionally, a change to remove the compensation for the salaried class was authorized. For individuals making less than Rs0.6 million annually, there will be no tax under the new rates. A fixed tax of 2.5 percent of the amount beyond Rs0.6m must be paid by anyone making between Rs0.6m and Rs1.2m.
Those making between Rs1.2 million and Rs2.4 million must pay a set tax of Rs15,000 plus 12.5 percent of the amount over Rs1.2 million. The tax rate is Rs136,000 + 20 percent of the amount beyond Rs2.4 million where taxable income exceeds Rs2.4 million but does not exceed Rs3.6 million.
Those making between Rs. 3.6 million and Rs. 6 million must pay Rs. 405,000 + 25% of the amount over Rs. 3.6 million. For income between Rs. 6 and 12 million, the tax is Rs. 1 million + 32.5 percent of the amount beyond Rs. 6 million. When taxable income exceeds Rs. 12 million, the tax is Rs. 2.9 million + 35% of the excess.
The NA also adopted a change that would impose a super-tax of 1-4 percent on individuals who earn between Rs150 million and Rs300 million annually. Additionally, a 10 percent “super tax” on big businesses was approved.
