Key Pointers of Pakistan's Budget 2019

Minister of State for Revenue Hammad Azhar unveiled Pakistan’s Budget 2019-20 today 11th June 2019.

Here are some of the Key Pointers of the presented Pakistan’s Budget 2019:-

Pakistan Federal Cabinet voluntarily agreed to reduction in 10% salaries
Government Employees Salaries: 10% Increase in Grade 1-16, 5% Increase in Grade 17-20, No Increase in Grade 21-22, 10% Increase in Pension Holders.
Budget on Education has been increased from PKR 35bn to PKR 57bn.
Persons employing fresh graduates (Graduated after July 1, 2017 from HEC recognized institutes/universities) would be given TAX CREDIT equal to the “amount of Annual Salary” paid to such graduates.
Govt allocates Rs29047 mln for Higher Education sector.
Sales tax on restaurants and bakeries reduced from 7.5 to 5%.
PKR 7579.200 million for various schemes of Climate Change allocated.
PKR 7,407mn allocated for Science Technology Research division.
“Kamyaab Jawaan” program to offer PKR 100bn loans for new businesses.
FED on cement increased from PKR 1.5/kg (PKR 75/bag) to PKR 2/kg (PKR 100/bag).
Federal Excise Duty on cigarettes increased from PKR 4500 to PKR 5200 per 1000 sticks.
Taxable income for salaried persons has been set at PKR 600,000/annum. For the non-salaried people, it is set at PKR 400,000/annum.
Tax to GDP ratio to be increased to 12.6pc.
Tax on dividends paid by power generation companies increased to 15% from current rate of 7.5%.
17% federal excise duty imposed on branded cooking oil.
13% federal excise duty imposed on cold drinks.
Food items supplied to bakeries and restaurants will be taxed at 4.5%.
Sales tax on sugar increased from 8% to 17%.
3% duty waived on 19 basic medical products.
Corporate tax rate fixed at 29% for next two years.
5% duty on LNG.
10% tax will be imposed on milk, cream, and flavored milk items.
Non-Filers can now purchase property.
Tax on immovable property decreased from 2% to 1%.
Govt would transfer Rs3,255 billion to provinces under the NFC award.
GST maintained at 17%.
3% VAT reduction on mobile phone imports.
Minimum monthly salary set at PKR 17,500/-
PKR 516 mln allocated for digitization of production & transmission infrastructure of Pakistan Television and Radio Pakistan.
Sales tax of 17% restored for five export-oriented sectors.
PKR 701 billion allocated for development (read roads, schools, hospitals, power plants etc).
Sales tax on export of PVC and PMC to Afghanistan and Central Asian Republics reduced to 0%.
Government expenditure decreased from PKR 460bn to PKR 437bn.
PKR 15 bn allocated for Mohamand Dam.
PKR 20bn allocated for Daimer Bhasha Dam.
PKR 43.5 billion allocated for the development of Karachi.
PKR 200 billion subsidy on electricity.