• Govt expects to net Rs1.76 trillion from new revenue measures
• Significant increase in tax rates for the salaried, new progressive tax rates for property transactions
ISLAMABAD: The government has announced a stunning Rs1.761 trillion in new revenue measures for the next fiscal year, which, a deeper examination reveals, may contribute to another bout of inflation in the country. The focus of the budget seems to be on withdrawing most exemptions from sales tax and customs duty which, though not fully reflected in the finance minister’s budget speech on the floor of National Assembly, is evident from the language of the Financial Bill 2024.
Federal Board of Revenue Chairman Zubair Tiwana avoided sharing details about the exemptions being withdrawn when he was asked relevant questions at a technical briefing held at the FBR’s headquarters. He also avoided sharing hard copies or any specifics of the measures being taken with the media, presumably to maintain the ‘positive impression’ that had been created by the budget speech.
The withdrawal of tax exemptions is expected to generate an additional Rs500 billion in revenue, according to the FBR chairman, but many analysts believe the quoted amount is modest and the revenue generated will be far greater.
In his briefing, Mr Tiwana said that Rs30bn in sales tax exemptions had been revoked from the health sector alone and another Rs47bn from the poultry sector. The withdrawal of exemptions in these two areas could spark an inflationary bout in the coming months as price increases are passed on to consumers.
Source:.dawn.com/news
Saturday, May 9, 2026
