Finance Minister Miftah Ismail will wind up the discussion in the National Assembly for the budget for the next fiscal year 2022-23 on Friday (today).
As per the details, the total outlay of the budget will be increased to Rs. 9.9 trillion from Rs. 9.5 trillion. The federal government will impose Rs. 876 billion in new taxes in the budget 2022-23 to meet the revenue target of Rs. 7.42 trillion.
Sources said that the government after pressure from the International Monetary Fund (IMF) agreed to slap Rs. 1,200 tax on salary earners of Rs. 50,000 to Rs. 100,000 and a 2.5 percent income tax on earnings from Rs. 600,000 to Rs. 1.2 million per annum. Earlier, the finance minister in the budget speech had proposed to exempt up to Rs. 1.2 million in annual salaried income from tax.
Sources said the government also decided to impose a 1 percent Income Support Levy on people and companies earning Rs. 150 million a year, 2 percent on those having an income of Rs. 200 million, 3 percent additional rate has been proposed for the Rs. 250 million annual income earners and 4 percent for Rs. 300 million annual income.
In the budget, the government had proposed a 2 percent rate for only those earning over Rs. 300 million a year and Rs. 38 billion in additional revenue.
Apart from this, the government has fixed the Rs. 750 billion petroleum development levy (PDL) target for the next year and the government will impose a Rs. 50 per liter maximum PDL on petroleum products by March 2023.
The primary budget surplus target will be Rs. 152 billion whereas the overall budget deficit target will also be at Rs. 3.8 trillion or 4.9 percent of Gross Domestic Product.
The pension budget has also been increased to Rs. 609 billion from Rs. 530 billion, and the budget for running the civilian government to Rs. 600 billion from Rs. 550 billion after the IMF showed concern that these have been understated in the budget.
Sources said that the subsidy amount has also surged to Rs. 680 billion from Rs. 530 billion for next year. This has been increased keeping in view the base tariff of electricity which has reached Rs. 24 per unit.