Pakistan Budget 2019/20

[last_knight]

Can someone summarise it.

Any Significant change of trend ?
And comparison with 2016-17 and 2017-18 ( 2018-19 comparison won't be fair because it was election year).

 

[MenInG]

Can someone summarise it.

Any Significant change of trend ?
And comparison with 2016-17 and 2017-18 ( 2018-19 comparison won't be fair because it was election year).

Here is the oppositions summary....


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font-family:Arial,sans-serif; font-size:14px; font-stylermal; font-weight:550; line-height:18px;"> View this post on Instagram</div></div><div style="padding: 12.5% 0;"></div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"><div> <div style="background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"></div> <div style="background-color: #F4F4F4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"></div> <div style="background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"></div></div><div style="margin-left: 8px;"> <div style=" background-color: #F4F4F4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"></div> <div style=" width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg)"></div></div><div style="margin-left: auto;"> <div style=" width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"></div> <div style=" background-color: #F4F4F4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"></div> <div style=" width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"></div></div></div></a> <p style=" margin:8px 0 0 0; padding:0 4px;"> <a href="https://www.instagram.com/p/BykiuzKhwLy/" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-stylermal; font-weightrmal; line-height:17px; text-decorationne; word-wrap:break-word;" target="_blank">As the federal budget is being announced in the National Assembly, opposition members have raised a ruckus, and are gathered around treasury benches and chanting anti-government slogans. Many are carrying placards saying 'Go Niazi Go' and 'Say no to IMF budget'. #Budget2019 </a></p> <p style=" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; line-height:17px; margin-bottom:0; margin-top:8px; overflow:hidden; padding:8px 0 7px; text-align:center; text-overflow:ellipsis; white-spacewrap;">A post shared by <a href="https://www.instagram.com/dawn.today/" style=" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; font-stylermal; font-weightrmal; line-height:17px;" target="_blank"> Dawn Today</a> (@dawn.today) on <time style=" font-family:Arial,sans-serif; font-size:14px; line-height:17px;" datetime="2019-06-11T1332+00:00">Jun 11, 2019 at 6:22am PDT</time></p></div></blockquote> <script async src="//www.instagram.com/embed.js"></script>

 

[aqeelPK]

Corporate owners & industrialists given major tax reliefs. Sanctions lifted from non filers. Further taxes imposed on salaried persons & daily used items. Duty reduced on mobile phones while milk & sugar are now luxury items in Pakistan.
Budget deficit is more than 3000bn Rs. The only plan put on the floor so far is to cover it up by taking more loans (mainly foreign loans, no more loans from State Bank as they can't afford to pay govt anymore). Hammad very proudly announced that Govt managed to get loans from UAE, Saudis & IMF, presented it as major achievement in 1st year of govt. Subsidies to public institutes are more or less same. No increase or reduction in defence budget. Import duty on paper's raw material reduced significantly (wonder who is into that business )

 

[aqeelPK]

10% reduction in federal minister salaries. Everyone applauded as if they had sacrificed their children for the motherland. Taxes increased on almost everything (700bn of new taxes) except Fertilizers where majority of duties & taxes have been reduced & we all know the reason why.

 

[Angrez Pakistani]

<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Minimum wage increased to Rs17,500<br><br>Read live updates on <a href="https://twitter.com/hashtag/Budget20?src=hash&ref_src=twsrc%5Etfw">#Budget20</a> here: <a href="https://t.co/vY4fVgAjuk">https://t.co/vY4fVgAjuk</a></p>— Dawn.com (@dawn_com) <a href="https://twitter.com/dawn_com/status/1138430653891002368?ref_src=twsrc%5Etfw">June 11, 2019</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[last_knight]

10% reduction in federal minister salaries. Everyone applauded as if they had sacrificed their children for the motherland. Taxes increased on almost everything (700bn of new taxes) except Fertilizers where majority of duties & taxes have been reduced & we all know the reason why.

Farmers and agriculture, main pillar of economy. Good relief for them. Not everything is linked to JKT.

From farmers to markets to consumers, agriculture loop contributes to economy at every level. This relief will facilitate them.

 

[last_knight]

Corporate owners & industrialists given major tax reliefs. Sanctions lifted from non filers. Further taxes imposed on salaried persons & daily used items. Duty reduced on mobile phones while milk & sugar are now luxury items in Pakistan.
Budget deficit is more than 3000bn Rs. The only plan put on the floor so far is to cover it up by taking more loans (mainly foreign loans, no more loans from State Bank as they can't afford to pay govt anymore). Hammad very proudly announced that Govt managed to get loans from UAE, Saudis & IMF, presented it as major achievement in 1st year of govt. Subsidies to public institutes are more or less same. No increase or reduction in defence budget. Import duty on paper's raw material reduced significantly (wonder who is into that business )

Reducing import duty on raw material of Papers is another good step. It facilitates paper manufacturing within Pakistan.

Currently, Indonesia supplies 95% of paper in Pakistan and I heard there is just one person who has license to import papers ( wonder who is that person). PPP, PMLn govts couldn't issue a license to another competitor.

Better to import raw material instead of products.

 

[WebGuru]

Fertilizers where majority of duties & taxes have been reduced & we all know the reason why.

Not everyone is a jageerdar there are million of small farmers and this will really help them.

 

[Syed1]

Sales tax on food items reduced

 

[Syed1]

10% reduction in federal minister salaries. Everyone applauded as if they had sacrificed their children for the motherland. Taxes increased on almost everything (700bn of new taxes) except Fertilizers where majority of duties & taxes have been reduced & we all know the reason why.

Sugar sales tax increased but but but JKT is sugar tycoon. Your conspiracies theories not sticking

 

[Bewal Express]

Sugar sales tax increased but but but JKT is sugar tycoon. Your conspiracies theories not sticking

These idiots think that every PM is as selfish as NS/AZ and will allow the national budget to be hijacked for the personal gain by a few members linked to the family businesses.

 

[WebGuru]

IK trolling the opposition

<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Troll level <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> <a href="https://twitter.com/hashtag/Budget2019?src=hash&ref_src=twsrc%5Etfw">#Budget2019</a> <a href="https://t.co/gN3ocB3dKP">pic.twitter.com/gN3ocB3dKP</a></p>— Ali Salman Alvi (@alisalmanalvi) <a href="https://twitter.com/alisalmanalvi/status/1138452520983060480?ref_src=twsrc%5Etfw">June 11, 2019</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[Angrez Pakistani]

<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Minimum wage increased to Rs17,500<br><br>Read live updates on <a href="https://twitter.com/hashtag/Budget20?src=hash&ref_src=twsrc%5Etfw">#Budget20</a> here: <a href="https://t.co/vY4fVgAjuk">https://t.co/vY4fVgAjuk</a></p>— Dawn.com (@dawn_com) <a href="https://twitter.com/dawn_com/status/1138430653891002368?ref_src=twsrc%5Etfw">June 11, 2019</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Now I'd love to see how much this increase in minimum wage proportionately contribute to national income at the end of the fiscal year. It will be the only indicator that can determine whether wages are actually increasing and whether or not more wage earners are being brought into the tax net.

 

[Syed1]

Now I'd love to see how much this increase in minimum wage proportionately contribute to national income at the end of the fiscal year. It will be the only indicator that can determine whether wages are actually increasing and whether or not more wage earners are being brought into the tax net.

The minimum income for income tax is 600,000. I do not know Pak's tax laws very well but I think that amount is annual income, meaning anybody who earns Rs. 50,000 a month they will pay 5% income tax which amounts to Rs. 2,500.

 

[WebGuru]

The minimum income for income tax is 600,000. I do not know Pak's tax laws very well but I think that amount is annual income, meaning anybody who earns Rs. 50,000 a month they will pay 5% income tax which amounts to Rs. 2,500.

 

[Syed1]

Full budget speech

 

[Syed1]

Is that Rs. 2000 tax on annual basis or monthly?


If it is annual then idk why people are crying. These are miniscule amounts.

 

[WebGuru]

Is that Rs. 2000 tax on annual basis or monthly?


If it is annual then idk why people are crying. These are miniscule amounts.

Annual basis.

 

[Syed1]

Annual basis.

So somebody who earns Rs. 600,000 a year and pays just Rs. 2000 which amounts to just a tax rate of 3% and people are crying haye mehngai tankhuwa daar tabqay ko tax mein diboo diya



In Canada I pay 32% tax on my income and my income is considered middle income not even that high. At the higher tax brackets the tax rate is close to 50%.



Dunya ki haar ayashi chahye, khoobsurat roads parks chahyein, behtareen school hospital chahyein, leken 3% tax dehna hai. Mashallah

 

[aqeelPK]

Is that Rs. 2000 tax on annual basis or monthly?


If it is annual then idk why people are crying. These are miniscule amounts.

There was no direct income tax on annual salary of upto 12 lakh, now its 2k-14.5k. Persons with monthly salary of 200k or more suffered a lot. Monthly tax deductions doubled. e.g. monthly tax deduction on 200k monthly salary increased from 5k to 11.5k, monthly tax deduction on 250k monthly salary increased from 10k to 22k & so on.

 

[last_knight]

Annual basis.

So somebody who earns Rs. 600,000 a year and pays just Rs. 2000 which amounts to just a tax rate of 3% and people are crying haye mehngai tankhuwa daar tabqay ko tax mein diboo diya



In Canada I pay 32% tax on my income and my income is considered middle income not even that high. At the higher tax brackets the tax rate is close to 50%.



Dunya ki haar ayashi chahye, khoobsurat roads parks chahyein, behtareen school hospital chahyein, leken 3% tax dehna hai. Mashallah

No. I think it's monthly.

 

[WebGuru]

So somebody who earns Rs. 600,000 a year and pays just Rs. 2000 which amounts to just a tax rate of 3% and people are crying haye mehngai tankhuwa daar tabqay ko tax mein diboo diya



In Canada I pay 32% tax on my income and my income is considered middle income not even that high. At the higher tax brackets the tax rate is close to 50%.



Dunya ki haar ayashi chahye, khoobsurat roads parks chahyein, behtareen school hospital chahyein, leken 3% tax dehna hai. Mashallah

IIRC in 2017-18 this tax started from 400,000/year salary and PMLN Govt increased it to min 1.2million/year salary in their final budget 18/19 to make awaam happy before elections.

 

[Syed1]

There was no direct income tax on annual salary of upto 12 lakh, now its 2k-14.5k. Persons with monthly salary of 200k or more suffered a lot. Monthly tax deductions doubled. e.g. monthly tax deduction on 200k monthly salary increased from 5k to 11.5k, monthly tax deduction on 250k monthly salary increased from 10k to 22k & so on.

Good... tax is essential for any country to function. You live in South Korea. The minimum tax rate there is 6%. Which is still higher than Pakistan's 3%.

https://www.expat.com/en/guide/asia/south-korea/9639-tax-system-in-south-korea.html


but who am I kidding you have been programmed to oppose IK and PTI because of your political affiliations. Had they removed all taxes you would have still found a way to bash them.

 

[Angrez Pakistani]

Minimum wage is just a fiction for the majority of Pakistanis who work in the informal economy. I heard somewhere that only 5 million people in Pakistan have bank accounts, with more than 100 million adults working without them. Remove the people formally working bellow the taxable annual wage of 600,000 PKR and the tax net shrinks further.

 

[aqeelPK]

So somebody who earns Rs. 600,000 a year and pays just Rs. 2000 which amounts to just a tax rate of 3% and people are crying haye mehngai tankhuwa daar tabqay ko tax mein diboo diya



In Canada I pay 32% tax on my income and my income is considered middle income not even that high. At the higher tax brackets the tax rate is close to 50%.



Dunya ki haar ayashi chahye, khoobsurat roads parks chahyein, behtareen school hospital chahyein, leken 3% tax dehna hai. Mashallah

Bro, percentage gets higher as income increases. Problem is salaried person pays (or is robbed) direct income taxes, but businessmen don't pay. It is not fair system. Businessman with avg monthly income of 500k pays ZERO income tax while salaried person pays more than 50k.
Do you pay 17% GST on all purchases, more than 35% taxes on utility bills, 25% or more additional on food items & all kind of duties on imported & luxury items in CANADA?

 

[Syed1]

Bro, percentage gets higher as income increases. Problem is salaried person pays (or is robbed) direct income taxes, but businessmen don't pay. It is not fair system. Businessman with avg monthly income of 500k pays ZERO income tax while salaried person pays more than 50k.
Do you pay 17% GST on all purchases, more than 35% taxes on utility bills, 25% or more additional on food items & all kind of duties on imported & luxury items in CANADA?

There is a 13-15% tax on EVERYTHING across the board on top of the 30% tax that is automatically deducted on my income. If I go and sell my 10 year old beat up car and I have to pay tax on that as well. That is how much of the first world functions.

 

[aqeelPK]

Minimum wage is just a fiction for the majority of Pakistanis who work in the informal economy. I heard somewhere that only 5 million people in Pakistan have bank accounts, with more than 100 million adults working without them. Remove the people formally working bellow the taxable annual wage of 600,000 PKR and the tax net shrinks further.

& only 100,000 pay tax out of those 5 million. Hammad told it in budget speech.

 

[Syed1]

All the ruckus created I missed some important points regarding the tax breaks for companies to hire new graduates etc. I hope someone summarizes the key points of the budget in bullet form.

 

[aqeelPK]

There is a 13-15% tax on EVERYTHING across the board on top of the 30% tax that is automatically deducted on my income. If I go and sell my 10 year old beat up car and I have to pay tax on that as well. That is how much of the first world functions.

If Pakistanis get same facilities as Canadians & tax system is fair then they will have absolutely no complaints as well. btw, Pakistanis pay more than 43% in direct & indirect taxes on their incomes & spending.

 

[abdulqadir786]

So somebody who earns Rs. 600,000 a year and pays just Rs. 2000 which amounts to just a tax rate of 3% and people are crying haye mehngai tankhuwa daar tabqay ko tax mein diboo diya



In Canada I pay 32% tax on my income and my income is considered middle income not even that high. At the higher tax brackets the tax rate is close to 50%.



Dunya ki haar ayashi chahye, khoobsurat roads parks chahyein, behtareen school hospital chahyein, leken 3% tax dehna hai. Mashallah

I concur bro.

 

[Syed1]

1. Total outlay of the PSDP for the fiscal year 2018-19 is Rs 1.863 trillion
2. The share of federal PSDP is Rs 951 billion while that of provincial PSDP is Rs 912 billion
3. Rs 250 billion have been earmarked for alternative financing
4. National Highway Authority to get a share of Rs 155.966 billion
5. Sukkur-Multan Motorway to receive Rs 19 billion
6. Rs 20 billion earmarked for Diamir Bhasha Dam and land acquisition
7. Mohmand Dam to get Rs 15 billion
8. Rs 54.68 billion allocated for Dasu Hydropower project
9. Rs 29.046 billion allocated for development schemes of Higher Education Commission
10. Rs 10 billion for Prime Minister’s Youth Skill Development Initiative
11. Rs 48 billion set aside for Merged Areas 10 Years Development Plan
12. Rs 85.021 billion earmarked for Water Resources Division
13. Aviation Division to get Rs 1266.5 million for the fiscal year 2019-20
14. Rs100 million earmarked for Board of Investment
15. Rs 39.986 billion set aside for Cabinet Division
16. Climate Change Division to get Rs 7579.2 million
17. Rs100 million earmarked for Commerce Division
18. Rs 248.3 million fixed for Communication Division (other than NHA)
19. Rs 456 million to be provided to Defence Division
20. Defence Production Division to get Rs1700 million
21. Rs 333.25 million allocated for Establishment Division
22. Rs 4796.76 million earmarked for Federal Education and Professional Training Division
23. Rs 36.821 billion set aside for Finance Division
24. Rs 29.774 million allocated for Foreign Affairs Division
25. Housing and Works Division to get a share of Rs 2930.07 million
26. Human Rights Division will get Rs 142.9 million for upcoming fiscal year
27. Rs 2343.293 million allocated for Industries and Production Division
28. Rs 516.126 million earmarked for Information and Broadcasting Division
29. Rs 7341.617 million set aside for Information Technology and Telecom Division
30. Rs 339.958 million for Interprovincial Coordination Division
31. Rs 9,847.769 million for Interior Division
32. Kashmir Affairs and Gilgit Baltistan Division will get Rs 44.699 billion
33. Rs1340.225 million set aside for Law and Justice Division
34. Rs 3600.243 million earmarked for Maritime Affairs Division
35. Narcotics Control Division will get a share of Rs135.24 million
36. National Food Security and Research Division to get Rs12.047 billion
37. National Health Services Regulations and Coordination Division to have Rs13.376 billion
38. Rs 128.016 million allocated for National History and Literary Heritage Division
39. Rs24.457 billion for Pakistan Atomic Energy Commission
40. Rs 301.47 million for Pakistan Nuclear Regulatory Authority
41. Rs 581.812 million set aside for Petroleum Division
42. Rs 7,963.517 million for Planning, Development and Reform Division
43. Rs 200 million for Poverty Alleviation and Social Safety Division
44. Rs16 billion for Railways Division
45. Rs1000 million for Religious Affairs and Interfaith Harmony Division
46. Rs 1,818.23 million for Revenue Division
47. Science and Technological Research Division to get Rs 7,407.361 million
48. Rs 6,033.245 million set aside for SUPPARCO
49. Rs 202.828 million for Textile Industry Division
50. Rs 41.792 billion earmarked for NTDC/PEPCO
51. Rs 5000 million for Earthquake Rehabilitation and Reconstruction Authority (ERRA)
52. Rs 32.500 billion for Relief and Rehabilitation of IDPs
53. Rs 32.5 billion for Security Enhancement
54. Rs 2000 million for Clean Green Pakistan Movement/Tourism
55. Rs 1000 million for Gas Infrastructure Development Cess

 

[Syed1]

Meanwhile on the other side of the border India starts income tax at Rs. 250,000 as opposed to Pakistan's Rs. 600,000 and their tax rate is 5% compared to our 3%.

https://cleartax.in/s/income-tax-slabs





tax ke bhooj talay awaam ko pees diya

 

[aqeelPK]

Meanwhile on the other side of the border India starts income tax at Rs. 250,000 as opposed to Pakistan's Rs. 600,000 and their tax rate is 5% compared to our 3%.

https://cleartax.in/s/income-tax-slabs





tax ke bhooj talay awaam ko pees diya

Why are you focused on income tax only & that too of the lowest slab. Check the other taxes imposed in this budget. New taxes of of 700bn have been imposed. That is very significant weight when your national income is only 3800bn.

 

[Syed1]

Why are you focused on income tax only & that too of the lowest slab. Check the other taxes imposed in this budget. New taxes of of 700bn have been imposed. That is very significant weight when your national income is only 3800bn.

That's because the one who is earning the lowest is always the most vulnerable and feels the greatest pinch of taxation. Should I be concerned about some tycoon who instead of affording a Mercedes will now only be able to afford an Audi. Poor guy.

 

[natkhat-shahzada]

Sugar sales tax increased but but but JKT is sugar tycoon. Your conspiracies theories not sticking

Sugar sales tax increased for the common man, the subsidies for the Sugar mills are not reduced. Don't know what to make of this?

 

[natkhat-shahzada]

So somebody who earns Rs. 600,000 a year and pays just Rs. 2000 which amounts to just a tax rate of 3% and people are crying haye mehngai tankhuwa daar tabqay ko tax mein diboo diya



In Canada I pay 32% tax on my income and my income is considered middle income not even that high. At the higher tax brackets the tax rate is close to 50%.



Dunya ki haar ayashi chahye, khoobsurat roads parks chahyein, behtareen school hospital chahyein, leken 3% tax dehna hai. Mashallah

In theory you are right. However, you have to see the context. The buying power of the lower and middle class man is not much that it can afford the additional bit of tax. On top of that, we have to pay sales tax on every purchases and I don't know if the tax rebate actually works. I hope that they improve the tax rebate system because that will help in reducing the burden of the income tax.

 

[natkhat-shahzada]

IIRC in 2017-18 this tax started from 400,000/year salary and PMLN Govt increased it to min 1.2million/year salary in their final budget 18/19 to make awaam happy before elections.

It was a good move albeit politically motivated. I know a lot of people who came in tax net because of this. It should have continued in my opinion and the big mafias should have been targeted. But maybe it is easier said than done because there are these political compulsions.

 

[natkhat-shahzada]

All the ruckus created I missed some important points regarding the tax breaks for companies to hire new graduates etc. I hope someone summarizes the key points of the budget in bullet form.

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.

The issue is that the tax rebate is not given (or that easily). I don't know anyone in my close circles who were able to get tax rebate.

 

[WebGuru]

Not really sure how it's gonna work in a country like Pakistan but someone shared:

"If you buy things from a retailer whose cash register is integrated with FBR and u also take invoice from them, you will get 5% Sales tax refund."

 

[natkhat-shahzada]

Not really sure how it's gonna work in a country like Pakistan but someone shared:

"If you buy things from a retailer whose cash register is integrated with FBR and u also take invoice from them, you will get 5% Sales tax refund."

The refund is from the amount you owe as tax. You are not given any money as cash. At max, the remaining balance is carried forward.

 

[Pete Rose]

So, before its 1971 all over again brigade shows up: a few things to highlight:
1 - the currency has depreciated significantly over the last two years, so in dollar terms the military budget has actually been cut.
2 - if 1971 is occupying your frontal lobe: even in rupees terms the military budget is not growing as much as the actual budget, which has been the case historically
3 - for the sorriest lot of you who want to share idiotic charts from PML era showing how ishaq dar actually gave lesser than budget to the military:
a - he inflated the actual currency exchange rate vs, planned currency exchange rate, so its the effect of being able to buy more with less
b - america/nato stopped paying the coalition support funds completely for the last two years, and thats where the military budget has spiked over the last two years.

but yes we can debate 1971 again, if you like

 

[sjahmed23]

Does Pakistan have property / real estate tax? If it doesn't then I am disgusted. The salaried workforce is already under the pump due to inflation and currency depreciation.

 

[Jin Chacha]

The reason the salaried class complains is not because of the amount of tax but because of the perceived injustice. The only people who pay tax in Pakistan are the salaried class as it is deducted at source. Increasing the tax rate for them even by a small amount is unfair unless the large business owners, corporate's and feudals are brought into the tax net. Unfortunately, these people are still sitting in parliament and it is practically impossible to go against them even if IK has the right intentions. The policy of all previous govts has been to squeeze the salaried class that is already in the tax net rather than bringing the big fish and undocumented small businesses in the tax net and the current budget is the same. Given the state of the economy IK has little choice but as things stand, the educated middle class has very little incentive to stay in Pakistan. This is part of the reason we lose so many educated people to the middle east and west.

 

[last_knight]

Minimum wage is just a fiction for the majority of Pakistanis who work in the informal economy. I heard somewhere that only 5 million people in Pakistan have bank accounts, with more than 100 million adults working without them. Remove the people formally working bellow the taxable annual wage of 600,000 PKR and the tax net shrinks further.

An important point in this budget :

Transactions/Salaries will go ahead if you show NTN number and in case of no NTN you have to record it against your NIC number (In national database I guess). So Black Market will be relatively hard to get access to.

 

[natkhat-shahzada]

So somebody who earns Rs. 600,000 a year and pays just Rs. 2000 which amounts to just a tax rate of 3% and people are crying haye mehngai tankhuwa daar tabqay ko tax mein diboo diya



In Canada I pay 32% tax on my income and my income is considered middle income not even that high. At the higher tax brackets the tax rate is close to 50%.



Dunya ki haar ayashi chahye, khoobsurat roads parks chahyein, behtareen school hospital chahyein, leken 3% tax dehna hai. Mashallah

I checked on few websites and the highest tax brack is 33%. Can you please correct me on this.

 

[Kianig89]

Nothing for poor and middle class except the pie of 10%pay rise

 

[Angrez Pakistani]

An important point in this budget :

Transactions/Salaries will go ahead if you show NTN number and in case of no NTN you have to record it against your NIC number (In national database I guess). So Black Market will be relatively hard to get access to.

Not enough to make any meaningful difference.

 

[Syed1]

I checked on few websites and the highest tax brack is 33%. Can you please correct me on this.

I'm sorry meri abhi otna level nahi howa to verify it first hand if its actually true or not, someone who mashallah se earns alot said on their income its about 50%. Its more a he said she said situation.


I checked online and here are the rates for Ontario, notice how as you go above in tax brackets the percentage is added.






Anyways Canadian taxation system is not comparable to Pak because people's incomes and buying power is higher I just brought it as a point that taxation levels in Pak are not as massive as being portrayed in the media. Better comparison would be with neigbouring India and they have higher tax rates than us.

 

[amvbfm]

So somebody who earns Rs. 600,000 a year and pays just Rs. 2000 which amounts to just a tax rate of 3% and people are crying haye mehngai tankhuwa daar tabqay ko tax mein diboo diya



In Canada I pay 32% tax on my income and my income is considered middle income not even that high. At the higher tax brackets the tax rate is close to 50%.



Dunya ki haar ayashi chahye, khoobsurat roads parks chahyein, behtareen school hospital chahyein, leken 3% tax dehna hai. Mashallah

Your 32% tax brings you a number benefits, our taxes (effectively a lot more than 32 if you add up the countless indirect taxes) bring us absolutely nothing. kaunsi ayashee ki baat kartay ho bhai, school hospital darkinar yahan logon Kay pass paani nahi. So please don't compare.

I agree that Miftah's cuts were a political stunt but disappointingly Imran hasn't done the salaried class any favors despite making countless promises about widening the tax base.

 

[Rathore]

govt abolished all scholarships programs

 

[Syed1]

Your 32% tax brings you a number benefits, our taxes (effectively a lot more than 32 if you add up the countless indirect taxes) bring us absolutely nothing. kaunsi ayashee ki baat kartay ho bhai, school hospital darkinar yahan logon Kay pass paani nahi. So please don't compare.

I agree that Miftah's cuts were a political stunt but disappointingly Imran hasn't done the salaried class any favors despite making countless promises about widening the tax base.

Comparing with Canada was wrong on my part. The two countries have very different dynamics.



However, Pak's taxation system is not even comparable to India and Bangladesh. Both countries have much higher tax-to-gdp numbers. I agree with your statement ke jitna tax jama bhi hota hai woh bhi lagta nahi hai.

 

[slipcatch]

If Pakistanis get same facilities as Canadians & tax system is fair then they will have absolutely no complaints as well. btw, Pakistanis pay more than 43% in direct & indirect taxes on their incomes & spending.

Why weren't you moaning like this and demanding for the facilities from previous government for the past 30 years, but i doubt that you are over 18.

It is the first year of this government, they can't provide everything that you forgot to ask from previous government in last 30 years.

Chill out with your incoherent complaint.

 

[sjahmed23]

People, it's not going to be perfect but the government provides you with an army that alone should make you happy that your taxes are being put to good use. Otherwise you would also be forced sing Modi Ji's praise.

People think in US government provides us benefits from the tax it collects? Bahah no, they squeeze like 60% from you if you add everything up and even then your health care is not free.

 

[amvbfm]

Comparing with Canada was wrong on my part. The two countries have very different dynamics.



However, Pak's taxation system is not even comparable to India and Bangladesh. Both countries have much higher tax-to-gdp numbers. I agree with your statement ke jitna tax jama bhi hota hai woh bhi lagta nahi hai.

I am not familiar with the taxation regimes of those two so won't comment. I agree about the tax to GDP figure but then you are ignoring the fact that this is being derived from a very small tax base (a complete directory of taxpayers is available on the FBR site, just look at the number of filers and you will have an idea) and a large proportion is from the salaried class who are taxed at source. When you consider that this is one of the segments hardest hit by the recent devaluation and inflation it is tragic that more taxes are being piled on them. Most of the business community despite their protests aren't affected as much as they always pass on the effects of inflation and devaluation to consumers. I dont mind paying higher taxes and tbh I don't have a choice but it is disappointing given what PTI had promised.

 

[amvbfm]

Why weren't you moaning like this and demanding for the facilities from previous government for the past 30 years, but i doubt that you are over 18.

It is the first year of this government, they can't provide everything that you forgot to ask from previous government in last 30 years.

Chill out with your incoherent complaint.

It is not an invalid complaint. To be honest almost every budget in Pakistan elicits similar reactions but in this case it has a lot to do with the promises made by IK regarding the widening of the tax base.

 

[Savak]

Most citizens around the world pay their taxes and then demand accountability from the government for their tax revenues. Pakistani's don't want to pay taxes and then they demand that the government provide them with UK, Canada type welfare facilities. Does not work like that, pay your taxes and then demand.

 

[Angrez Pakistani]

govt abolished all scholarships programs

Wait Whaaaaattttt???

 

[slipcatch]

It is not an invalid complaint. To be honest almost every budget in Pakistan elicits similar reactions but in this case it has a lot to do with the promises made by IK regarding the widening of the tax base.

It becomes invalid when you ignore the tax infrastructure and previous government incompetence.

 

[amvbfm]

It becomes invalid when you ignore the tax infrastructure and previous government incompetence.

Agree that the previous government was extremely incompetent and corrupt and we have a huge fiscal deficit to address but how does that mean that you further squeeze the only people who are paying their taxes every year when you made a totally different promise. Supporting IK is fine but that doesn't mean he should not be held accountable for his promises. That is the very mentality that gave birth to the kleptocrats who have ruined this country. Also you can't attribute everything to the previous government's incompetence. They ruined the economy, corrupted the system but now they aren't in power. Now PTI is in power, isn't it time PTI introduced some positive changes instead of using the "previous government's incompetence excuse" for everything. Even if the woes of the salaried class are entirely the result of the previous government's incompetence, shouldn't IK now address that instead of further squeezing the same class?

 

[slipcatch]

Can’t wait to read all these comments in next 5 to 10 years.

There will be lots of people who would be either hiding their face or disappear.

But one thing for sure, this is a change Pakistan and hopefully for the better.

 

[Savak]

I checked on few websites and the highest tax brack is 33%. Can you please correct me on this.

Highest Federal Tax Bracket is 33%, Highest Provincial Tax Bracket is 13%. If you also include property taxes in this, you are literally giving away 50% of your income to the govt. But those taxes pay for your pension, old age security, health care, utilities, law and order.

 

[Waseem]

There was no direct income tax on annual salary of upto 12 lakh, now its 2k-14.5k. Persons with monthly salary of 200k or more suffered a lot. Monthly tax deductions doubled. e.g. monthly tax deduction on 200k monthly salary increased from 5k to 11.5k, monthly tax deduction on 250k monthly salary increased from 10k to 22k & so on.

Pakistan's new tax brackets:

Rs 0 - 6Lakh = Rs0
Rs 6Lakh - 8Lakh = Rs2000
Rs 8Lakh - 14Lakh = Rs14500
Rs 14Lakh - 15Lakh = Rs79500
Rs 15Lakh - 18Lakh = Rs92000

Bangladesh's new tax brackets:


Tk 0 - 2.5Lakh = Tk0
Tk 2.5Lakh - 6.5Lakh = 10%
Tk 6.5Lakh - 11.5Lakh = 15%
Tk 11.5Lakh - 17.5Lakh = 20%
Tk 17.5Lakh - 47.5Lakh = 25%
Above Tk47.5 = 30%

We are not comparing ourselves with Europe/USA/Australia because it would be unfair so let's compare with Bangladesh, just to cover other key points, their per capita income is lower than Pakistan and GST is 18% as compared to Pakistan's 17%.

What is shocking is PMLN's pathetic decision (on yet another front) when they increased minimum income tax payer bracket. No tax on upto Rs12lakh This is why we need to compare with countries in our region with similar economies.

 

[Waseem]

So after watching real analysis of budget rather than political discussion about budget, none of the experts said that it is disastrous by any means. Most analysts with knowledge of economy didn't really think there were too many other options and Kamran Khan's show in particular featured decent economists who had mostly positive views with some issues.

Political talkshows mostly discussed income tax brackets and it's impact which obviously wasn't so much positive because it impacts all the anchors and other employees in media houses.

 

[Syed1]

Pakistan's new tax brackets:

Rs 0 - 6Lakh = Rs0
Rs 6Lakh - 8Lakh = Rs2000
Rs 8Lakh - 14Lakh = Rs14500
Rs 14Lakh - 15Lakh = Rs79500
Rs 15Lakh - 18Lakh = Rs92000

Bangladesh's new tax brackets:


Tk 0 - 2.5Lakh = Tk0
Tk 2.5Lakh - 6.5Lakh = 10%
Tk 6.5Lakh - 11.5Lakh = 15%
Tk 11.5Lakh - 17.5Lakh = 20%
Tk 17.5Lakh - 47.5Lakh = 25%
Above Tk47.5 = 30%

We are not comparing ourselves with Europe/USA/Australia because it would be unfair so let's compare with Bangladesh, just to cover other key points, their per capita income is lower than Pakistan and GST is 18% as compared to Pakistan's 17%.

What is shocking is PMLN's pathetic decision (on yet another front) when they increased minimum income tax payer bracket. No tax on upto Rs12lakh This is why we need to compare with countries in our region with similar economies.

So suppose someone earns 15lakhs a year, that means Rs 125,000 a month they will have to pay Rs 92,000 in tax in a year meaning roughly Rs 8,000 a month. So after tax monthly income is Rs 117,000 instead of Rs 125,000. Haye yeh mehngayi..... awaam ko tax ke booj talay dibo diya

 

[Abdullah719]

National Assembly in chaos as deputy speaker asks Shehbaz Sharif to start budget speech

The National Assembly budget session started in pandemonium on Friday morning as PTI MNAs created a ruckus while former prime minister Raja Pervez Ashraf tried to address the assembly.

Initially, NA Speaker Asad Qaiser adjourned proceedings for ten minutes. However, the chaos persisted even after the proceedings resumed, forcing the speaker to adjourn the session till after Friday prayers.

When the session began again after 2pm, Deputy Speaker Qasim Suri repeatedly urged Leader of the Opposition Shehbaz Sharif to speak first, as per the rules of the house. However, the opposition leader insisted that the JUI-F lawmakers should be allowed to address the house first.

PTI minister Fawad Chaudhry and other MNAs opposed giving the floor to JUI-F's lawmakers, who were demanding they speak first. Suri said that Shehbaz should be the first to speak "unless he wants to forgo his turn". The back and forth between the deputy speaker and leader of the opposition went on for more than half an hour before the former finally got up to speak.

With the deputy speaker struggling to maintain order in the house, Shehbaz began his speech by criticising the government's economic policies. He accused the Imran Khan-led government of taking the dollar up "to the skies" and said its "propaganda machinery" could not hide the administration's "worst performance".

Earlier, when the point of order for the session was announced, PPP protested against the non-issuance of former president Asif Ali Zardari's production orders, who was arrested by the National Accountability Bureau (NAB) on Monday.

The speaker asked Shehbaz Sharif to begin his address.

Sharif said that Ashraf wanted to say something and he should be given the time to speak.

Taking the floor, the PPP leader brought up the production orders of Zardari.

"Currently Asif Ali Zardari is present in Islamabad at a distance of three minutes. He is a former president [and] his absence in this important session of the house and the non-issuance of his production orders will not be considered a good tradition in this house," said Ashraf.

Opposition stages walkout in Senate
Meanwhile, the opposition walked out of a Senate session due to the non-issuance of Zardari's production order and a lack of action on a resolution approved in the upper house regarding the references against judges.

PPP Senator Sherry Rehman said that NAB had arrested Zardari from his house, a day before the budget, adding that she had heard that arrest warrants for Zardari's sister Faryal Talpur had also been issued.

She said that the former president had been appearing in courts and for NAB's questioning.

"Politicians are being harassed," Rehman said. "These are retaliatory acts."

The opposition continued their protest outside the Senate.

Leader of the House in the Senate Syed Shibli Faraz expressed displeasure at the behaviour of the opposition.

"One political party is taking the house hostage," he said, adding that the government would not allow this and first the agenda of the house would be completed.

PTI's Dr Shahzad Waseem said that first production orders for former finance minister Ishaq Dar should be issued, who he said had not yet taken an oath since becoming a senator.

The opposition also discussed the federal budget which was presented in the NA by Minister of State for Revenue Hammad Azhar on Tuesday.

PPP's Rehman said that the parliamentary committee was not consulted in the preparation of the budget. She said that a "tsunami" had taken place in the prices of oil, gas and food and drink items.

PPP stalwart Raza Rabbani said that the budget had been "illegally presented" in the NA.

Senate Chairman Sadiq Sanjrani said that a matter pertaining to the other house could not be discussed here.

While asking the Senate chairman to inquire with the NA speaker about the matter, Rabbani said that the budget had been made on the directions of the International Monetary Fund (IMF). Sanjrani took the floor back from the PPP senator.

In reference to Prime Minister Imran Khan's address on Tuesday night vowing to go after the "thieves who left the country badly in debt," PML-N Senator Abdul Qayyum said the premier should not use the language of thanaydaars (police station officers).

He offered the government assistance in improving the economic situation.

Zardari's production orders
On Thursday, a three-member opposition delegation called on the NA speaker at the latter’s official residence to make a formal demand for issuance of production orders for four arrested MNAs, including Zardari, to allow them to attend the ongoing budget session.

The opposition members — Syed Khursheed Shah and Senator Raza Rabbani of the PPP and Senator Mushahid Hussain Sayed of the PML-N — had urged the speaker to issue the production order for Zardari so that he could represent the people of his Nawabshah constituency during the debate on the federal budget.

Later, an official handout was issued by the NA Secretariat quoting Qaiser as saying that he was cognisant of his responsibilities and was playing his constitutional role.

The speaker had said that he was the custodian of the house and all the members were being treated with equality. He said the PPP and the PML-N members had requested him to issue the production order for Zardari.

https://www.dawn.com/news/1488170/n...er-asks-shehbaz-sharif-to-start-budget-speech

 

[Gharib Aadmi]

They raised the salaries of civil servants from grades 1 to 16 by 10%, as well as raised the pensions by 10%. They deserve a zero percent raise, yet some of them are still complaining.

 

[Junaid_ahmed]

So somebody who earns Rs. 600,000 a year and pays just Rs. 2000 which amounts to just a tax rate of 3% and people are crying haye mehngai tankhuwa daar tabqay ko tax mein diboo diya



In Canada I pay 32% tax on my income and my income is considered middle income not even that high. At the higher tax brackets the tax rate is close to 50%.



Dunya ki haar ayashi chahye, khoobsurat roads parks chahyein, behtareen school hospital chahyein, leken 3% tax dehna hai. Mashallah

The problem is 600000 is equal to $4000/year $330/month, now tell me can you run your family on $330?

 

[Savak]

The problem is 600000 is equal to $4000/year $330/month, now tell me can you run your family on $330?

In Canada the expenses are in dollars too my friend whereas the expenses in Pakistan is in Rupees. You have to compare proportionately

 

[amvbfm]

So suppose someone earns 15lakhs a year, that means Rs 125,000 a month they will have to pay Rs 92,000 in tax in a year meaning roughly Rs 8,000 a month. So after tax monthly income is Rs 117,000 instead of Rs 125,000. Haye yeh mehngayi..... awaam ko tax ke booj talay dibo diya

Firstly, those tax brackets are incorrect and I think someone with an income of 125,000 will pay lesser but that is not the real problem. The problem as you, a few others here and many in the country and the government are framing it is that the salaried class should not complain
1- because the increase in their taxes is minimal
2- they have paid taxes in tougher regimes
Both the points ignore the fact that the salaried class is the only class which consistently pays its taxes through thick and thin and is the one most affected by inflation, devaluation and indirect taxation. Traders, businessmen, agriculturists and service providers (who usually don't even pay taxes) pass on the effects of inflation and devaluation so they are not much affected by it. The salaried class on the other hand suffers a triple whammy of inflation and devaluation, direct and indirect taxes and stagnation of wages.

It is easy to dismiss an increment of 2000 or 3000 direct taxation on an absolute basis but for people already struggling to cope those are big amounts. Your trivializing the problem indicates your lack of knowledge about ground realities and those in Pakistan criticizing the increment as trivial speak either with the benefit of being a part of the privileged class (myself included) or having very few responsibilities due to their age. Also telling the salaried class to cut down their expenses is akin to "tell them to eat cake" situation. In the past years the cost of living has gone up considerably (in double digits) while wages have stagnated due to little economic growth.

The argument about paying higher taxes in previous regimes is also a flawed one, as firstly inflation and devluation weren't as bad during those times (doesn't mean I'm entirely blaming the PTI government for it) and secondly that is the very reason that a lot of the educated salaried class voted for IK and for change, with the expectation that there would be equitable taxation.

Lastly, as I have done multiple times, I ask you and others to not trivialize the problems of the common Pakistani taxpayer who is the actual lifeline of the economy of this country and never complains about contributing his or her share for the betterment of the country unlike the majority of its population who do nothing except extracting benefits at the cost of the less privileged.

 

[amvbfm]

In Canada the expenses are in dollars too my friend whereas the expenses in Pakistan is in Rupees. You have to compare proportionately

The inflation in Canada is 2%, in Pakistan it is in the double digits (around 9% if we take the official version). And remember that inflation is an exponential growth function so the cumulative difference bewteen 2% and 9% over a period of few years is a massive one.

 

[WebGuru]

National Assembly of Pakistan has approved the Budget 2019-20 with 176 votes in favor and 146 in opposing.

176 votes not a good sign for opposition if they were thinking about in house change.