Pakistan Budget FY 2022-2023


#Budget Highlights
#FinancialYear2022_23 (FY23)

Finance Minister Miftah Ismail presented the federal budget of Rs. 95.2 trillion for the financial year 23-2022 on Friday.

The total expenditure of the federal government in the financial year 23-2022 is estimated at Rs. 9,502 billion, 800 billion for programs, 1523 billion for defense, 530 billion for pensions, and 65 billion for HEC.

Budget Fiscal Year 2022-23 (FY23): A custom duty on agriculture machinery is abolished to promote growth and investment in the sector.

Budget FY23: PKR 10 billion has been allocated for the improvement of climate projects.

Budget FY23: Sales tax on solar panels imposed by the last govt has been removed.

Budget FY23: PKR 202 billion has been allocated for Transport & Communications sector.

FY23 Budget: GDP target set at 5%.

FY23 Budget: Inflation target at 11.5%.

Budget FY23: Fiscal deficit to be targeted at 4.9% of GDP in FY23.

Budget FY23: Exports & Imports target at USD 35bn, & imports at USD 70bn, respectively.

Budget FY23: Current account deficit is targeted at 2.2% of GDP as compared to the 4.1% deficit of FY22.

Budget FY23: Remittances are expected at USD 33.2bn in FY23 as compared to USD 31.1bn in the last year.

Budget FY23: PKR 3,950bn for debt servicing has been allocated as compared to PKR 3,144bn in FY22.

Budget FY23:Targeted subsidies at PKR 699bn.

Budget FY23: Total tax collection target at PKR 7,004 bn as compared to Tax collection of PKR 6,000 bn in FY22.

Budget FY23: Allocation for the Benazir Income Support programme has been increased to PKR 364bn as compared to 250bn in the last year.

Budget FY23: PSDP allocation set at PKR 800bn.

Budget FY23: PKR 65 billion has been allocated to Higher Education Commission.

Budget FY23: PKR 21 billion has been allocated for an increase in the production of crops and livestock.

Budget FY23: A youth employment policy program will be started for the fresh graduates of Pakistan with a 25% women quota.

Budget FY23: Free laptops to be distributed on merit among students.

Budget FY23: PKR 40.5 billion DLTL claims to be released immediately by the FBR along with sales tax pending refunds.

Budget FY23: Industrial feeders have been exempted from load shedding.

Budget FY23: Nine Special Economic Zones to be established on the CPEC route.

Budget FY23: Filmmakers to be given tax holidays for the next five years.

Exports rebate will be provided on movies and dramas exports for the next 10 years.

Budget FY23: Distributors & film producers to be exempted from the imposition of 8% withholding tax. Along with this, Custom duty on the import of machinery for the entertainment industry will be abolished.

Budget FY23: Sales tax on import of media and entertainment industry slashed to zero to promote media & entertainment industry.

Budget FY23: PKR 800bn has been set for PSDP in FY23 which has been PKR 1,000bn in 2018.

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Budget FY23: PKR 136 billion has been allocated under PSDP for provinces, Azad Kashmir and Gilgit Baltistan.

Budget FY23: PKR 73 billion has been allocated to the Energy sector for the improvement in transmission, distribution & production of electricity. Under this allocation, PKR 12bn would be spent on Muhamand Dam.

Budget FY23: PKR 183 billion has been allocated for water and energy projects.

Budget FY23: PKR 202 billion has been allocated for the Transport and Communication sector.

Budget FY23: To ease the common man’s life under Sustainable Development Goals, PKR 70 billion has been allocated.

Budget FY23: PKR 51 billion has been allocated for Higher Education projects.

Budget FY23: To improve the country’s health system, and availability of treatment, PKR 24bn has been allocated.

Budget FY23: PKR 10 billion allocated to combat climate changes.

Budget FY23: PKR 17 billion was allocated for the Information and Technology sector.

Budget FY23: PKR 11 billion has been allocated to improve agriculture productivity.

Budget FY23: PKR 20 billion has been allocated for the K-IV project.

Budget FY23: Minimum salary eligible for income tax has been increased to PKR 1.2 million as compared to PKR 0.6mn to facilitate the salaried class.

Budget FY23: Income exempted for AOP, Business Individuals has been increased to PKR 0.6 million from PKR 0.4 million.

Budget FY23: Income tax on Behbood certificates, Pensioners account has been decreased to 5% from 10%.

Budget FY23: Fixed income and sales tax to be charged from small retailers. This tax will be collected through electricity bills. Amount PKR 3-10K.

Budget FY23: Initial 100% depreciation allowed for Industrial units as compared to 50%.

Budget FY23: Properties having the value of PKR 25 million will have to pay 1% income tax on rental income which will be equal to 5% of the fair amount of the property. This tax will not be applicable for personal residence.

Budget FY23: 15% capital gain tax to be charged on immovable properties sold under a one-year holding period.

Budget FY23: Advance tax for filers for property transactions has been increased to 2% from 1%. And same has been increased to 5% for the non-filers.

Budget FY23: The banking sector is to be taxed at 42% from the current taxation of 39%.

Budget FY23: Payments made through Debit, Credit, and Pre Paid cards to a foreign country would be charged with 1% & 2% advance WHT for filers and non-filers.

Budget FY23: Banks will provide cheap financing for the purchase of solar panels for households using less than 200 units of monthly electricity.

Budget FY23: 5% sales tax on tractors abolished to zero.

Budget FY23: Sales tax on import of Sunflower, Canola, wheat, and seeds has been abolished.

Budget FY23: 50 beds Not for Profit hospitals would not be charged with local utilities (free electricity, water & other facilities).

Budget FY23: A custom duty on agriculture machinery has been abolished.

Budget FY23: Custom and additional customs duties along 400 tariff lines have been rationalized.

Budget FY23: More than 30 pharmaceuticals API have been exempted from Customs duty.

Budget FY23: Tax evasion in the country is estimated to be PKR 3,000 billion.

Budget FY23: Salaries of Govt employees to be increased by 15%.

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