Business Tech

No mini-budget is coming, Finance Ministry rebuts the news

Finance Ministry rebuts news about mini-budget

The Finance Ministry here on Friday rejected the news item published in a section of the press claiming that government plans to present a mini-budget for the collection of Rs80 billion in revenue through an ordinance.

“The news is misleading and factually incorrect. There was no mention of imposition of Rs80 billion new taxes even through the promulgation of the ordinance,” the ministry said in a statement.

It clarified that Federal Minister for Finance and Revenue, Miftah Ismail in his press conference on August 18, 2022, said that the government had decided to lift the ban on imported items and withdraw the fixed tax on retailers imposed through the electricity bills.


Budget deficit rises despite higher tax collection

Govt unveils Rs9.502 trn budget to protect ailing economy

The government would promulgate an ordinance in a few days to charge variable taxes to traders, starting with a 5 per cent sales tax and a 7.5 per cent income tax that will remain in place for three months for all traders.

From October 1st, 2022, these taxes would be on consumption of 50 units, after which these taxes would gradually increase for higher consumption units.  

“Instead of fixed tax on retailers that will reduce the revenue of Rs42 billion, we will now revert to the old system of ad valorem tax,” it added.

This will mean a reduction in FBR revenue of Rs15 billion, which would be compensated by imposing taxes of Rs36 billion on tobacco and cigarettes.

Related posts