Budget 2018-19Highlights

Umair Raza
Executive Editor
Magazine Positive Pakistan

Highlights of the Budget 2018-19

  The Democratic Govt has now become able to present the 5th budget of worth Rs.5.9 trillion yesterday in Islamabad. The budget includes the major benchmarks for the upcoming fiscal year GDP growth rate at 6.2%, inflation below 6%, tax to GDP ratio at 13%, with 5.8% in Industrial development & 3.8% growth in Agriculture. The amount of Rs.24.5 billion from the budget has been allotted for the FATA. The Net Public Debt to be contained at 3.2% of GDP while the foreign exchange reserves will remain at 15 billion Dollars.

Salient Features of the Budget 2018-19 are:
1- Individuals income exempted up to 12 Lacs
2- Tax on individual income from 12 lacs and above will be taxed as per slab which has been decreased.
3- Data mining introduced for new taxpayers search.
4- Remittance up to One Lac dollar exempt, above this will be investigated.
5- Immoveable assets undeclared the government within six months can purchase by double price to the declarant if not proper.
6- FBR rate for property valuation abolished.
7- Filer tax rate 1% against property sale and purchase.
8-       GST exemptions same as per last year.
9- 5 Sectors under SRO 1125 at 0 rated.
10- Exports refund will be paid within 12 months 1/7/2018.
11- Corporate tax decreased by 25% up to 2023.
12- Real estate investor’s tax reduced to 7.5%.
13- Non-Filer bank transactions tax rate reduced to 0.4%.
14- Tax audit only once in three year.
15- Super Tax decreased by 1% each year to end it up.
16- AOP slab decrease to 30%.
17- Undistributed profit decrease to 5%.
18- Tax on bonus shares abolished.
19- Dividend tax decrease to 5%.
20- Now withholding tax on services would be above Rs.30000/- and on supplies above Rs.75000/- Increased FED on cement to Rs1.50/kg from Rs1.25/kg (Rs1, 250/ton to Rs1, 500/ton).Increase rate of sales tax on steel sector to Rs13/unit of electricity consumed from Rs10.5/unit
21- Sales tax abolished on Fisheries sector.
22- Import of LNG 3% value addition tax abolished.
23- Import of Computer parts---sales tax abolished.
24- Increase in taxes on Cigarettes.
25- Eyesight glasses taxes reduced to 3%
26- Cancer medicines exempted from tax.
27- Further tax increase from 2 to 3%.
28- Hybrid car duty reduced to 25%.
29- Hotels exempted from tax.
30- Tax on banking transaction of more than 50,000 per day by nom-filers reduced to 0.4%.
31- Tax on fertilizers down from 5% to 3%.