The Federal Government of Pakistan presented its proposed budget for the fiscal year 2023-24 on 09 June 2023. The budget sets out an ambitious revenue collection target but unfortunately it seems unlikely given that there has been no emphasis on increasing tax base or targeting accumulated unused wealth.
The budget seems to be transitionary in nature and most of the proposed amendments are quick-grab measures to capture as much revenue / tax as possible from the existing tax base. Like previous budgets, there is neither any real effort to increase tax base (such as targeting unnecessary wealth accumulation) nor there appears to be any inkling to harmonize / unify various confusing tax regimes / policies.
Unfortunately, given the current economic situation and lack of serious effort from the people responsible, this budget fails to address key issues and generate any meaningful additional revenue for the exchequer.
· Keeping duties on import of essential items unchanged
· Facilitating trade facilitation and increasing ease of doing business
· Supporting industries and agriculture for growth
· Supporting Information Technology (IT) and IT enabled services sector and SME sector
· Total outlay: PKR 14.5 trillion
· Tax collection target: PKR 9.2 trillion; non-tax collection target: PKR 2.93 trillion
· GDP growth target: 3.5% per annum
· CPI expectation: 21% per annum
· Fiscal deficit: 6.5% of GDP
· Exports target: USD 30 billion
· BISP allocation: PKR 450 billion
Please click on the attached document to go through key proposals.
Comments