Prime Minister Shehbaz Sharif approves Federal Budget 2022-23 proposals which were presented in the Parliament on June 10, 2022. — PID
ISLAMABAD: Federal Minister for Finance and Revenue Miftah Ismail Friday
for the fiscal year 2022-23 in order to stabilise economic growth and control the increasing inflation. unveiled the coalition government's maiden federal budget
“The budget 2022-23 is a growth budget. It is based on a well-thought-out strategy to boost the economic growth earlier outlined in the medium-term budgetary strategy paper for FY23 to FY25, which gave a clear roadmap of the strategic priorities, revenue and spending policies of the government,” the document released by the Ministry of Finance read.
Read more: 'Balanced, stabilising', experts, businessmen weigh in on budget 2022-23
Here is a list of the salient features of the federal budget:
GDP growth target at 5% GDP projected at Rs78.3 trillion against Rs67 trillion this year Inflation expected at 11.5% in FY23 against 11.7% in FY22 Tax-to-GDP to be taken to 9.2% in FY23 against 8.6% in FY22 The fiscal deficit is to be reduced to 4.9% in FY23 against 8.6% in FY22 The primary surplus is expected at 0.19% in FY23 against a primary deficit of 2.4% in FY22 Imports projected at $70bn in FY23 vs $76 billion in FY22 Exports projected at $3 billion in FY23 vs $31.3 billion in FY22 Remittances estimated at $33.2 billion vs $31.1 billion in FY22 Current account deficit projected at 2.2% of GDP in FY23 versus 4.1% of GDP in FY22 Total interest payment of Rs3,144 billion; domestic interest payment: Rs2,770 billion and external interest payment R373 billion Debt ceiling at 60% of GDP Overdue receivables of the petroleum sector are estimated at Rs284 billion, while next year's allocation has been set at Rs71 billion Five-year tax holiday for film-makers, new cinemas, production houses Fixed income and sales tax on small retailers — to be collected with electricity bills 100% depreciation adjustment in the first year of operations for corporates and businesses Advance income tax at import stage to be made adjustable People having more than one immovable property worth more than Rs25 million will be assumed to have 5% rental income on market value, which will be taxed at 1% of this fair market value 15% capital gains on one year holding period, reducing by 2.5% for every additional year tax on immovable property Advance tax on filers to be increased to 2% from the previous 1% on purchase of property (non-filers: 5%) People/companies with income above Rs300 million to pay an additional 2% tax Increased advanced tax on autos above 1600cc Taxation increased on banks to 42% from the previous 39% (including super tax) Credit/debit card payments made outside the country to be taxed at 1% (filers) and 2% (non-filers), adjustable in full-year tax No sales tax on solar panels Annulment of sales tax on tractors, wheat, maize, sunflower, canola etc. Custom duty eliminated on agriculture machinery Custom duties rationalised on 400 items within the manufacturing sector Tariff rationalised on synthetic yarn (PSF) More than 30 pharma APIs free from custom duties 10% salary increase for government employees Pension increased to Rs530 billion