The Budget Outlay for the financial year 2022–23 has been increased from Rs. 9.5 trillion to Rs. 9.9 trillion after talks with the International Monetary Fund (IMF) in addition to raising the tax collection target for the Federal Board of Revenue (FBR) to Rs. 7.426 trillion from Rs. 7.004 trillion.
The major macro targets will be finalized with the IMF and State Bank of Pakistan (SBP) within the next few days.
The categorical breakdown of the revised tax collection targets reveals that an income of more than Rs. 300 million per year will be taxed at the rate of four percent, which is double the originally proposed two percent.
Similarly, per the revised proposal, income over Rs. 150 million per year will be taxed at one percent, incomes of more than Rs. 200 million per year will be taxed at two percent, and incomes of over Rs. 250 million per year will be taxed at three percent.
Furthermore, the 15 percent increase in salaries and the five percent increase in pensions will be reversed, with the funds going to the contingency fund.
The tax collection target on pensions has been increased from Rs. 530 billion to Rs. 609 billion and civilian government expenditures have been revised from Rs. 550 billion to Rs. 600 billion.
The FBR collection base for FY22 has been changed to Rs. 6,100 billion from Rs. 5,818 billion. Likewise, the petroleum levy target has been decreased from Rs. 750 billion to Rs. 550 billion and the customs duty collection target has been revised to Rs. 953 billion from Rs. 1,005 billion.
The Gas Infrastructure Development Cess (GIDC) collection target of Rs. 200 billion has been reverted due to litigation, and lastly, the relief of Rs. 47 billion on the personal income tax target has been abolished.