The 2024-25 federal budget has been officially passed by the National Assembly during its session in Islamabad today.
Finance Minister Muhammad Aurangzeb announced amendments to the Finance Bill 2024 which were approved by Speaker Ayaz Sadiq on live television.
Below are some key takeaways from the proposed changes in measures mentioned in the amendment document and announced by the Finance Minister.
Increased FED on Airline tickets: The federal government has hiked the excise duty on business and club class air tickets up to Rs. 350,000.
Petroleum Development Levy (PDL) Up by Rs. 10/Liter: The government has decided to increase the PDL by Rs. 10 per liter on MS petrol and High-Speed Diesel (HSD).
10% Surcharge on High Earners: The federal government has imposed a 10 percent surcharge on the tax liability of high-earners.
Income Tax on Developers: 15 percent of revenues will be considered deemed income and 29 percent income tax will be applicable on it.
Tax on hybrid Vehicles: The reduced rate of 8.5 percent and 12.75 percent for hybrid vehicles with engine capacity of up to 1800cc and between 1801-2500cc, respectively will continue. However, proposed amendments have limited this benefit till Jun 30, 2026.
FED on cement increased to Rs. 4/kg: In an unexpected move, where, per news reports were quoting possible reversion of increase in FED on cement, the Finance Minister has proposed to further increase FED on cement from Rs. 3 per Kg to Rs. 4 per Kg.
One year Extension to FATA PATA on sales tax: The government has extended sales tax benefits given to FATA PATA for one more year till 30th June 2025.
Exporters will pay normal corporate tax instead of 1%: The government has maintained its earlier stance of taxing export income at corporate tax of 29 percent + applicable super tax. Previously, exporters were paying 1 percent of export turnover which was full and final.
Capital Value Tax (CVT) on property: CVT on farmhouses and 2 kanal homes in the federal capital.
Setting up Tax Fraud Investigation Wing Inland Revenue: The functions of the Tax Fraud Investigation Wing Inland Revenue shall be to detect, analyze, investigate, combat and prevent tax evasion and fraud.
Increase in Travel Allowance of Lawmakers: The travel allowance for members of parliament has been raised from Rs. 10 per kilometer to Rs. 25 per kilometer, an increase of 150 percent. Moreover, the unused annual airline tickets for members of parliament will now carry over to the following year instead of being canceled.
For updates on everything about the Federal Budget, visit this link.
