The government has also imposed tax on retail sales of vehicles and automobile accessories.
A 30% tax has been imposed on luxury SUVs valued between Rs20 million and Rs30 million. Vehicles worth more than Rs30 million will face a 40% tax, according to the budget document. However, no tax has been imposed on solar panels.
The budget proposes a 5% tax on purchases made from unregistered suppliers. The tax rate on distributors has been increased from 0.25% to 0.50%.
Federal budget size fixed at Rs18.77tr
According to the budget document, the size of the federal budget for the upcoming fiscal year has been set at Rs18,771 billion. The Federal Board of Revenue’s annual tax target has been fixed at Rs15,264 billion.
Gross revenue has been estimated at Rs20,600 billion, while non-tax revenue is projected at Rs5,336 billion.
The budget document shows that Rs8,848 billion will be transferred to the provinces in the next fiscal year. After provincial transfers, the federal government’s net revenue is estimated at Rs11,751 billion.
The government plans to borrow Rs2,034 billion from internal sources and Rs813 billion from external sources. It will also obtain Rs4,012 billion through T-bills, Pakistan Investment Bonds and Sukuk.
In addition, Rs161 billion is expected to be generated through the privatization of government institutions during the next fiscal year.
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