Budget 2024-25 Wrap-Up: Everything You Need to Know
Today, the National Assembly in Islamabad passed the government budget 2024-25.
Finance Minister Muhammad Aurangzeb announced changes to the Finance Bill 2024 on live television, which Speaker Ayaz Sadiq then passed.
Here are some of the most important things to know about the planned changes to measures laid out in the amendment document and approved by the Finance Minister.
Increased FED on Airline tickets: More than Rs. 350,000 has been added to the price of business and club class plane tickets by the federal government.
Petroleum Development Levy (PDL) Up by Rs. 10/Liter: The government has agreed to raise the price of MS gasoline and High-Speed Diesel (HSD) by 10 rupees per liter.
10% Surcharge on High Earners: Someone with a lot of money now has to pay 10% more in taxes because the federal government raised them.
Income Tax on Developers: 15 percent of the money made will be thought of as income, and it will be taxed at 29 percent.
Tax on hybrid Vehicles: The lower rates of 8.5% for hybrid cars with engines up to 1800cc and 12.5% for hybrid cars with engines between 1800cc and 2500cc will stay in place. This benefit will only last until June 30, 2026, though, because of planned changes.
FED on cement increased to Rs. 4/kg: News accounts said that the Finance Minister might reverse the increase in FED on cement, but in a surprise move, he wants to raise FED on cement even more, from Rs. 3 per Kg to Rs. 4 per Kg.
One year Extension to FATA PATA on sales tax: The government has given FATA PATA one more year of sales tax breaks, until June 30, 2025.
Exporters will pay normal corporate tax instead of 1%: The government has stuck to its original plan to tax export income at a rate of 29% plus any relevant super tax. Exporters used to pay 1% of their total export sales, which was the full and final amount.
Capital Value Tax (CVT) on property: CVT on two-kanal homes and farmhouses in the government capital.
Increase in Travel Allowance of Lawmakers: Members of parliament now get Rs. 25 per kilometer for travel, up from Rs. 10 per kilometer before. This is a 150 percent climb. Also, lawmakers’ annual airline tickets that they don’t use will now be carried over to the next year instead of being canceled.
For updates on everything about the Federal Budget, visit this link.
