According to details, Federal Minister for Industries and Production Hamad Azhar presented a budget of Rs 72.94 trillion for the next financial year 2020-2021, which is 11 percent less than the previous financial year.
Cheaper items
The government has reduced the price of milk, curd, cheese, butter and ghee in the budget, while rice, fruits, nuts, fish, poultry, eggs, honey, coffee and sweets have been given tax exemption.
Similarly, relief has been given to vegetables, oil, spices, sugar, soybeans, power supply of LED lights and sales tax on lenses has been abolished. It has been proposed to reduce maternal and child food supplements.
Tax reduction
The budget has reduced taxes on projectors, household electric appliances, paper, wallpaper, sports equipment, agricultural equipment, fertilizers, rubber, air travel, computer and office equipment.
According to Federal Minister Hamad Azhar, permission has been given to make mobile phones in Pakistan. The sales tax rate for making mobile phones in Pakistan is being reduced.
Presenting budget proposals, Hamad Azhar said that advance tax on autorickshaw motorcycle rickshaws up to 200 cc has been abolished.
Increase in tax duty
In the budget for the financial year 2020-21, the FED rate on imported cigarettes will be increased from 65% to 100% while the rate of FED on e-cigarette filter rods is also being increased.
Caffeinated energy drinks are subject to 25% federal excise duty, locally manufactured double cabins are subject to 7.5% federal excise duty and imported double cabins are subject to 25% federal excise duty.
