Budget 20-21 focuses on providing relief to the masses: Hafeez Sheikh
In the post-budget conference, PM’s aide says govt has cut its own expenditures to pass on relief to the public
Special Adviser to Prime Minister on Finance Hafeez Sheikh has said that the budget for next fiscal year is focused to cope with the impacts of Covid-19 and provide relief to the masses.
Addressing the post budget news conference in Islamabad on Saturday along with Information Minister Shibli Faraz and Minister for Industries and Production Hammad Azhar, the adviser said the basic pillar of the budget is that no new tax has been imposed in it rather concessions worth Rs40-50 billion have been given in taxes and duties to support the industrial sector and create job opportunities.
Sheikh said the government has taken the difficult decisions of cutting its own expenditures keeping in view the problems faced by the masses. He said the development outlay has been set at Rs650 billion while allocations for Ehsaas Programme have also been enhanced to protect the vulnerable segments of the society.
“The present government is taking loans to clear the loans taken in the past. He said we paid back Rs2700 billion of loans last year and this year we will pay back RS2900 billion in loans,” he clarified.
Giving a breakup of the relief given in taxes, the adviser on finance said regulatory duty on 1,623 tariff lines of raw materials are totally being done away whilst on others including those related to engineering sector are also being reduced.
The adviser said 10 different types of withholding tax are also being abolished.
Sheikh said massive relief has also been given to different sectors especially the construction. The Capital Gains Tax is being halved whilst the federal excise duty on cement has been cut.
The adviser said the sales tax for the retailers opting to link themselves with FBR is being reduced to 12%. The duty on hospitality sector is being reduced from 1.5% to 0.5%. He said taxes and duties are being abolished on the testing kits of corona virus and cancer.
He said the government also tried its level best to pass on the benefit of lowering petroleum prices to the people.
The adviser said the world institutions including the IMF, World Bank and Asian Development Bank are appreciative of the financial discipline shown by the present government.
Addressing the post budget news conference in Islamabad on Saturday along with Information Minister Shibli Faraz and Minister for Industries and Production Hammad Azhar, the adviser said the basic pillar of the budget is that no new tax has been imposed in it rather concessions worth Rs40-50 billion have been given in taxes and duties to support the industrial sector and create job opportunities.
Sheikh said the government has taken the difficult decisions of cutting its own expenditures keeping in view the problems faced by the masses. He said the development outlay has been set at Rs650 billion while allocations for Ehsaas Programme have also been enhanced to protect the vulnerable segments of the society.
“The present government is taking loans to clear the loans taken in the past. He said we paid back Rs2700 billion of loans last year and this year we will pay back RS2900 billion in loans,” he clarified.
Giving a breakup of the relief given in taxes, the adviser on finance said regulatory duty on 1,623 tariff lines of raw materials are totally being done away whilst on others including those related to engineering sector are also being reduced.
The adviser said 10 different types of withholding tax are also being abolished.
Sheikh said massive relief has also been given to different sectors especially the construction. The Capital Gains Tax is being halved whilst the federal excise duty on cement has been cut.
The adviser said the sales tax for the retailers opting to link themselves with FBR is being reduced to 12%. The duty on hospitality sector is being reduced from 1.5% to 0.5%. He said taxes and duties are being abolished on the testing kits of corona virus and cancer.
He said the government also tried its level best to pass on the benefit of lowering petroleum prices to the people.
The adviser said the world institutions including the IMF, World Bank and Asian Development Bank are appreciative of the financial discipline shown by the present government.