Highlights of Pakistan’s Mini Budget 2019

Finance Minister Asad Umar presented the third finance bill 2018-19 in the National Assembly

“This is not a budget, this is a corrective package aimed at addressing various sectors of the economy,” the finance minister clarified at the start of his speech.

Key Pointers of Pakistan’s Mini Budget 2019

• Tax on income from loans to SME sector to be reduced to 20pc.
• Agricultural tax will be dropped to 20 per cent.
• To provide low-income housing, loans will be decreased to 20 per cent.
• Rs5 billion revolving fund (Qarz-e-hasna) will be introduced.
• Non-fillers will be able to purchase small and mid-size cars up to 1300CC, but the tax would be increased.
• Withholding tax for filers on banking transactions will be eliminated to encourage the culture of paying taxes.
• Rs20,000 fixed tax on marriage halls reduced to Rs5,000.
• Import on duty for newsprint will be eliminated.
• Pilot scheme to be introduced in Islamabad to facilitate traders in filing and paying taxes.
• Super tax on non banking companies to be abolished from July 1.
• Small businessmen will be submitting withholding tax returns only twice every year, they are exempted from submitting withholding tax returns every month. It envisages measures to boost manufacturing and exports, encourage low-cost housing and facilitate agricultural financing to promote economic activities. It also focuses on enhancing ease of doing business, simplifying procedures for setting up businesses and undertaking investment.
• The government has proposed reduction of taxes from 39 percent to 20 percent on small and medium enterprises, agricultural, and housing loans. This was announced by Finance Minister Asad Umar, while presenting Finance Supplementary (Second Amendment) Bill, 2019 in the National Assembly this evening.
• The Minister said a revolving fund with an amount of five billion rupees will to provide interest free loans for the construction of small houses.
• Withholding tax for filers is being withdrawn.
• Non-filers can purchase cars upto 1300 CC.
• Tax on marriage halls of 500 square feet will be reduced from 20,000 to 5,000 rupees.

Mini Budget Speech by Finance Minister Asad Umer

 

https://www.facebook.com/PTIOfficial/videos/2037385689632463/

 

The opposition constantly criticized on Asad Umar’s Mini Budget 2019, however this is the first budget ever in which taxes have been reduced, agriculture & farmers have been given relief, a common man is given tax cuts. All in all a decent mini budget 2019.