The parliament is likely to approve the budget for the fiscal year 2022-23 (FY23) worth Rs. 9.9 trillion today (Wednesday) with some major amendments.
Sources told ProPakistani that the government has made major changes in the budget targets including an upward revision in the tax collection target for the Federal Board of Revenue (FBR) and other expenditures for the next fiscal year against the one unveiled on June 10, 2022, by Finance Minister Miftah Ismail under pressure from the International Monetary Fund (IMF).
The government has increased its tax collection target from Rs. 7 trillion to Rs. 7.24 trillion for the next fiscal year. Consequently, the government has increased the customs collection target from Rs. 950 billion to Rs. 1,005 billion. The government has also increased the target of GST collection from Rs. 3,008 to Rs. 3,300 billion, sources said.
The government has also imposed a 10 percent super tax on 13 big sectors including sugar mills, textile, cement, banking, airlines, steel, automobile, beverage, fertilizer, cigarettes, chemical, oil and gas, and LNG terminals. It has also changed the tax slabs of income tax for salaried persons.
The government has also revised the target of pension expenditures from Rs. 530 billion to Rs. 609 billion for the next fiscal year. The target of the civilian government expenditures has been revised from Rs. 550 billion to Rs. 600 billion for FY23.
The overall primary budget surplus target, revenues excluding interest expenses, has remained unchanged at Rs. 152 billion. The overall budget deficit target also remains unchanged at Rs. 3.8 trillion.