ISLAMABAD: Important decisions taken over the new Budget for the FiscalYear 2020- 2021.
In a step to provide relief to the masses, the federal government hasdecided to present a tax-free budget for the fiscal year 2020-21.
Sources privy to the matter said that the government will not introduce anynew tax in the forthcoming budget while harsh measures will be taken tocurb tax evasion. Federal Board of Revenue will be given specialdirections/powers to stop tax evasion in the country.
The government will curtail its expenditures and will not increase pensionof the retired government employees, the sources added.
“International Monetary Fund (IMF) is emphasizing the government to setRs5,100 billion tax collection target for the fiscal year 2020-20 while theFinance Division proposed to set target of Rs4,600 billion.”
Read Top Stories
In view of ongoing tense situation in the region, it will be difficult forthe government to cut defence budget, the sources said and added Rs1,400billion would be allocated for the defence.
Earlier on June 3, Adviser to Prime Minister on Finance, Abdul HafeezShaikh had said that the federal government will not impose new taxes inthe budget for the next fiscal year.
Abdul Hafeez Shaikh, while talking exclusively to ARY News programme ‘PowerPlay’, had elaborated the preparations of the federal government tofinalise the next budget. He had said that the matter of salaries was animportant phase of a budget which was usually approved by the federalcabinet during the last days of finalising the budget.
