The prices of more than 400 products are likely to increase as Pakistan Tehreek-e-Insaf-led (PTI) government on Wednesday decided to present Mini Budget on Friday by improving Finance Bill 2018-19. The federal government has decided to enforce regulatory duties on 150 luxury products and to fix the income tax ratio to the June 30 level is also under contemplation in new mini budget which will be tabled on Friday.
The government also decided to cut down the federal development program through Mini Budget. Prime Minister Imran Khan has announced in a meeting to slash the Public Sector Development Programme (PSDP) budget. The meeting is likely to take decisions in this regard. The major customs duty suggestion is to increase the additional customs duty by 1% on 5,200 imported product lines, also, generating about Rs: 40 billion in taxes and the measure could cut the import bill by around $1 billion.
In order to curb imports, the government also considered reducing the age limit of imported cars from three years to two years and of jeeps from five years to three years.
The Federal Board of Revenue (FBR) has suggested to impose new taxes of Rs300 billion and also planned to increase the income tax of the salaried class. The previous PML-N government had given tax statement to those with an annual income of Rs: 1.2 million but now the government is as imposing tax on those earning Rs: 400,000 annually.
Moreover, Commerce Minister of Pakistan has set trade line policy while the federal government is likely to table investment and new five year commerce policy. Source further added that National Assembly’s session has been called on September 14 while finance bill would be presented in the same session.