Federal Minister for Finance and Revenue Shaukat Tarin on Friday wrapped up the budget debate in the National Assembly. While speaking, Tarin said that in the past, economic growth was temporary as it was achieved by taking loans but this government has taken and will take more steps to achieve sustainable and long-term growth.
The federal government has abolished tax on medical disbursement of government employees and salaried persons. In the budget, 10% tax was imposed on medical disbursement. Furthermore, there will be no tax on flour, wheat and internet services.
There will be a tax of Rs0.75 on mobile calls if it exceeds above five minutes. The span of auto incentives has been expanded to 1000cc.
The finance minister also said that the Real Estate Investment Tax (REIT) has been reduced to 15% while the tax on poultry products has been reduced from 17% to 10%. Property tax has also been reduced from 35% to 20%. To boost the local textile industry, the tax on textile products has been lowered from 12% to 10%.
The federal government is keen on establishing Agri malls which will reduce the intervention of middlemen, Tarin said. Furthermore, an additional amount of Rs25 billion will be given to the agriculture sector in the upcoming fiscal year.
The Value Addition Tax (VAT) on gold will remain at 17%. The tax rate on purchase of gold and silver will be 1% and 3% respectively.