JUNE 2022 – PAKISTAN 2022/2023 FEDERAL BUDGET SPEECH It is important that employers note the following: Pakistan 2022/2023 Budget speech and tax changes In addition, the Finance Bill 2022 was passed by the Punjab Assembly today, 23 June 2022. ยทย ย ย ย ย ย ย GDP will be increased from Rs 67 trillion to Rs 78.3 trillion. ยทย ย ย ย ย ย ย Inflation will be reduced from 11.7% to 11.5% during the next financial year. ยทย ย ย ย ย ย ย Tax to GDP ratio is currently 8.6%. Government plans to raise this ratio to 9.2% of GDP during the next financial year. ยทย ย ย ย ย ย ย Gross deficit that stands at 8.6% of GDP during the current fiscal year will be decreased gradually. In the next fiscal year, it will be decreased to 4.9%. ยทย ย ย ย ย ย ย The current budgetary proposals aim to tax the sectors that have either remained out of the tax net or hovered in the periphery and not paid taxes as per the actual capacity. ยทย ย ย ย ย ย ย The conflict between Russia and Ukraine poses a risk to Pakistan’s economy. ยทย ย ย ย ย ย ย Monetary tightening and fiscal consolidation may slow down economic growth. Tax measures announced: ยทย ย ย ย ย ย ย To impose 2% additional tax on income taxpayers with thirty million rupees annual income. ยทย ย ย ย ย ย ย To promote special economic zones to boost manufacturing. ยทย ย ย ย ย ย ย Definition of resident individual amended to include Pakistani citizens not resident in any other country. ยทย ย ย ย ย ย ย To raise the tax exemption limit for salaried income taxpayers.
To view the Finance Bill, 2022, follow the link. |
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