Government’s Budget Proposal for 2024-25 Aims to Eliminate Tax Exemptions

News Desk2 weeks ago

The facts state that in the upcoming financial budget, the federal government intended to end the current tax exemptions for the former Federally Administered Tribal Areas (FATA)/Provincially Administered Tribal Areas (PATA) region.

It is anticipated that the removal of tax exemptions in the FATA/PATA region will bring in an annual revenue of Rs 100 billion for the national exchequer.

According to sources close to the situation, the finance minister was briefed by the chairman of the Federal Bureau of Revenue (FBR) about the preliminary budget plan for the upcoming fiscal year, which has already been produced.

The federal government currently gives different sectors tax breaks totaling Rs 1,200 billion; however, the IMF has ordered Pakistan to phase down these tax exemptions in the upcoming

Read more25% Sales Tax Likely to Drive Up Car Prices in Pakistan

Asif Ali Zardari, the president of Pakistan, passed the Tax Laws (Amendment) Bill 2024 last week in accordance with Article 75 of the constitution.

According to a President House News release, the bill sought to change legislation pertaining to taxes and customs. The Sales Tax Act of 1990’s sections 30DDD, 43, 45B, 46, and 47 are among those that the measure amends.

Similar modifications have also been made to sections 122A, 124, 126A, 130, 131, 132, 133, and 134A of the Income Tax Ordinance 2001 as well as sections 29, 33, 34, and 38 of the Federal Excise Act 2005 through the amendment bill.

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