ISLAMABAD – The government is all set to present one thousand billionrupees mini budget as the cabinet is likely to reduce income tax exemptionsgranted.
According to the sources, the government is planned to present amendmentsto the budget in a National Assembly. A meeting has been called on Thursday(today), which will be chaired by Prime Minister Imran Khan, to discussthis.
As per sources, the government is likely to present mini-budget as to makesignificant amendment to Finance Bill 2018-19. The cabinet is expected toapprove the Income Tax Ordinance Amendment, which will reduce taxexemptions granted by the previous government. This means more people willhave to pay income tax again.
The sources said that the Custom Duty expected to increase by one per centand The Federal Board of Revenue (FBR) proposed to impose new taxes worthRs300 billion and increase the income taxes on salaried persons. Followingthis, the prices of more 400 things will be increased.
According to sources, the PML-N government had introduced tax exemption forannual income up to Rs1.2 million. The new government will reduce the slabfrom Rs1.2 million to Rs0.4 million. The proposal has been given to takethe rate of income tax will sustain on the same level from June 30.
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Meanwhile, the rate of fines will be increased for the tax defaulters.Ministry of Trade has prepared the tariff lines policy for mini-budget. Theinvestment policy and new five-year trade policy is also likely to bepresented by the government.
On Wednesday, the PTI-led government will make a significant amendment tothe Finance Bill 2018-19 along with changes to the amnesty schemeintroduced by the previous government.
A joint Parliament session is expected to be held on Monday evening.President Arif Alvi will address the session. Prime Minister Imran Khanhad earlier issued directives to postpone they joint Parliament session bytwo days following the death of former prime minister Nawaz Sharif’s wife.
