Acting President Sanjrani approves Finance Bill 2023-24

Finance Act to take effect from July 1; new measures include Rs215 billion additional taxes

ISLAMABAD:

Acting President Sadiq Sajrani approved the Finance Bill 2023-24 on Monday after the National Assembly passed the bill a day earlier with certain amendments to the proposed budgetary measures with the revised outlay of Rs14.48 trillion.

The approved budget 2023-24 focuses on economic stability, sustainable and inclusive growth as well as curbing inflationary pressures.

The new measures included Rs215 billion additional taxes through amendments to the original bill, which was presented on June 9. The bill set a target of 3.5 per cent growth rate in gross domestic product (GDP).

The house passed the bill a day earlier, moved by Finance Minister Ishaq Dar, with a majority vote. The house echoed with thumping of the desks as the budget was approved. Now the Finance Act will take effect on July 1.

The budget was approved a day after Dar announced fiscal adjustments worth Rs300 billion, including fiscal tightening measures as demanded by the International Monetary Fund (IMF) in a final push to clinch a much-delayed rescue package.

Read Rs215b new taxes imposed to placate IMF

The new measures announced by Dar, while winding up the budget debate included increasing tax burden on the salaried class and withdrawing the $100,000 asset-whitening scheme, suggesting that the government accepted majority of the IMF demands.

According to the approved Finance Bill, the revenue collection target of the Federal Board of Revenue (FBR) had been revised upward to Rs9,415 billion in the wake of Rs215 billion new taxes.

The house approved increases in the funds allocation to the pensions of retired government employees; the National Finance Commission (NFC) award for the provinces and the allocation for the Benazir Income Support Programme (BISP).

A 2.5 per cent tax was levied on the annual income of Rs2.4 million; tax on sale and purchase of property was increased from one to two per cent; five per cent federal excise duty (FED) on fertiliser and the FED on juices was increased from 10 to 20 per cent.

By amending the Petroleum Development Levy Ordinance, the limit of petroleum development levy (PDL) was increased from Rs50 per litre to Rs60 per litre.

Rs2,000 tax was levied on old-technology fans besides 20 per cent tax on old bulbs from January 1.