Money Budget Preparations; Includes financial adjustments of Rs. 6 trillion and deductions

Sales tax exemption on import of mobile phones abolished, the tax rate on import of mobile phones will be increased
Money Budget Preparations; Includes financial adjustments of Rs. 6 trillion and deductions


ISLAMABAD – The government has started preparations to bring a mini-budget. According to details, the government has finalized a “money budget” under an agreement with the International Monetary Fund (IMF), which includes financial adjustments of Rs 6 trillion and spending cuts. 

In the adjustments finalized in the mini-budget, the government has decided to reduce the expenditure under Public Sector Development Program (PSDP) by Rs. 2 trillion and the general expenditure of the government by Rs. 50 billion.

In addition, the withdrawal of tax exemption will fetch the government about Rs 350 billion. The IMF wants tax measures of Rs 7 trillion, including withdrawal of tax exemption and revision of tax slabs.

However, in the agreement reached for the current financial year, a tax exemption of only Rs 350 billion will be abolished and this exemption will be maintained on food items, fertilizers, and pesticides.

In addition, in the mini-budget, the federal government has decided to increase the tax on imported mobile phones by removing the sales tax exemption. 

During the news briefing, Finance Ministry spokesperson Muzammil Aslam said that sales tax exemption on import of mobile phones is being abolished. Not only sales tax exemption on import of mobile phones will be abolished but also the rate of tax on import of mobile phones is being increased.

He said the tax was being raised on imports of mobile phones worth more than 200 200. With the imposition of 17% sales tax, the price of a mobile phone of Rs. 10,000 will be Rs. It will be Rs. 17,000

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