The federal government has set a target of Rs356 billion in federal excise duty (FED) in the upcoming budget 2021-22.
The cigarette and tobacco industry will be the biggest contributor to the national exchequer in the next financial year with more than Rs134 billion in FED.
According to a budget document seen by The Correspondent, Rs33.64 billion FED has been set for the Beverages Concrete Sector, while Rs5.13 billion will be generated from the beverages sector.
According to the document, Rs4.32 billion has been set for petroleum products and Rs102.41 billion target set for the cement sector.
The FED on gas sector will contribute Rs11.97 billion to the earning. The services sector target is set at Rs14.95 billion.
The government is expected to earn Rs2.17 billion from FED imposed on imported goods.
The government has decided to convene session of the National Assembly on June 11 to table the budget for the financial year 2021-22. The session was convened after Adviser to the Prime Minister on Parliamentary Affairs Babar Awan met with Speaker Asad Qaiser.
The budget schedule was finalised during the meeting. Furthermore, parliamentary and national affairs were also discussed by the Pakistan Tehreek-e-Insaf (PTI) leaders. The budget will be presented by Finance Minister Shaukat Tarin in the assembly and later it will also be tabled before Senate as the debate on it will be concluded by June 28.
The total volume of the budget could be around Rs8,000 billion while the economic growth target has been set at 4.8 per cent.
In addition to this, a total of Rs47bn has been allocated for an increase in government employees’ salaries. For pensions, an extra amount of Rs47.7bn is being allocated. It is estimated that a total of Rs527bn will be allocated in pensions. Furthermore, the government will not impose any new taxes on the salaried class.
The budget will spend Rs3,060bn on loans and interest. The budget deficit for the next financial year could be Rs2,915bn. A sum of Rs900bn will be spent on the annual development program.
A total of Rs530bn can be set aside for subsidies. Defense budget likely to be more than Rs1,400bn. The non-tax revenue could be Rs1420bn in the next budget.
Target to increase GDP volume to Rs52,000bn Inflation is expected to be 8% in the next financial year 2021-22.