LCCI explores implications of federal budget 2023-24

Expresses concern over imposition of new taxes, reversal of relief measures

LAHORE:

The Lahore Chamber of Commerce & Industry (LCCI) hosted a highly significant seminar titled “Post Budget Session – Federal Budget 2023-24: Implications and Way Forward.” Under the chairmanship of LCCI President Kashif Anwar, the event aimed to dissect the recently passed federal budget and its potential ramifications. Distinguished speakers, including Muhammad Ali Latif, President of the Institute of Chartered Accountants of Pakistan (CFA), as well as renowned Chartered Accountants Rafaqat Hussain and Faisal Iqbal Khawaja, shared their insights and perspectives on the budget’s amendments, tax implications, and relief measures.

President Kashif Anwar commenced the seminar by drawing attention to the numerous new amendments introduced in the federal budget. Expressing concern over the imposition of various new taxes, Anwar lamented the withdrawal of several initially announced reliefs during the budget speech. He underscored the seminar’s primary objective of illuminating attendees on the different dimensions of the Federal Budget 2023-24.

Chartered Accountant Rafaqat Hussain delivered a comprehensive presentation on the budget, with a focus on the tax structure. Hussain disclosed that income tax accounted for a substantial portion, comprising 45% of all taxes. Additionally, he highlighted that customs duty constituted 13%, federal excise duty contributed 6%, and sales tax made up 36% of the total tax revenue. Hussain also noted the exemption of unbranded dairy products from taxes. Notably, he mentioned that all amendments pertaining to the information technology (IT) sector had been reversed following an agreement with the International Monetary Fund (IMF).

In his address, Chartered Accountant Faisal Iqbal Khawaja expressed concern over the reversal of relief measures in the budget, specifically mentioning the turnover threshold for SMEs, which had been increased from Rs250mn to Rs800mn. Khawaja underscored the distinction between properties of capital nature and revenue nature, emphasising that industries generate revenue while properties fall under the former category. He also highlighted challenges associated with bringing non-filers into the tax net due to issues with tax declarations and procedures.

Published in The Express Tribune, July 7^th, 2023.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.