Lahore: The federal government will table a budget of PKR 7.5 trillion for the fiscal year (FY) 2020-21 in the national assembly today — a news source reported. The revenue collection target will be set for PKR 4.95 trillion.
A special incentive package is also expected to be introduced in the budget. The government had already introduced a number of similar measures earlier this year, but some had been left to be announced in the upcoming budget. In this regard, more than PKR 200 billion is expected to be allocated for public-private development projects.
Additionally, the government has plans to introduce a luxury tax in the federal capital. Under this initiative, owners of large homes, villas and farm houses will have to pay an annual luxury tax of PKR 100,000 to 200,000. In case of farmhouses, the tax will be introduced at the rate of PKR 25 to PKR 80 per square foot. The homes owned by widows will, however, be exempt from such taxes.
The government is also going to be introducing a comprehensive centralised loyalty programme for overseas Pakistanis sending remittances through banking channels. Such overseas Pakistanis will be issued debit cards and loyalty cards. Other incentives under consideration include a reduction in withholding tax, and reduced fees for their children in Overseas Pakistanis Foundation (OPF) Schools.
Moreover, the salaries of public servants will be raised. It is further expected that sales tax exemptions will be removed. The government will also likely increase the income tax and Federal Excise Duty for non-filers. A proposal to increase General Sales Tax from 17% for non-filers is under consideration as well. The government is also expected to impose a 0.6% Withholding Tax on the deposit of foreign currency.
