Budget 2023-24 Taxable and Non-Taxable Items Detail

Finance Minister Ishaq Dar presented the budget of 14 thousand 460 billion for the financial year 2023-24 in the session of the National Assembly. The details of items that have been taxed and exempted from tax in the budget have been revealed. Read the complete article to get the information about Budget 2023-24 Taxable and Non-Taxable Items Detail

After the imposition of an 18% tax, the price of tetra-pack milk, packet yogurt, canned butter, cheese, tin-pack fish, canned chicken meat, and egg packets will also increase.

GST on branded clothes increased from 12% to 15%. The budget will impose a 5 percent tax on coffee houses, shops, and food outlets, the tax will be on debit and credit card payments.

Tax on Withdrawing Cash from Bank

If a non-filer withdraws more than 50 thousand rupees from the bank, he will pay a 0.6% withholding tax on this amount.

The tax rate will be 10 percent for those involved in the construction sector, the minimum tax for listed companies has been reduced from 1.5 percent to 1 percent.

The rates of super tax imposed on those earning more than 15 crores per annum will be increased, and the withholding tax on sending foreign currency abroad through credit cards has been increased from 1 percent to 5 percent.

The rate of sales tax on the sale of leather and textiles has been proposed to be increased from 12% to 15%. If an overseas Pakistani buys immovable property in Pakistan, the existing 2% tax will no longer be levied, and a person who undertakes personal construction will get a 10% tax exemption for 3 years.

Tax on Usage of Debit / Credit Cards

Those who bring in $100,000 in remittances will not be asked for income tax, it has been proposed to increase the tax on using debit and credit cards to withdraw dollars from 1% to 5%.

Fine & Imprisonment on Hoarding Foreign Currency

The government has decided to make a law on the hoarding of dollars and foreign currency, there will be imprisonment and fines for hoarding foreign currency, and the new law will apply to organizations and individuals who hoard foreign currency.

Tax on offshore digital services is proposed to be increased from 10 to 15 percent, withholding tax rate on rental income and property purchase of overseas Pakistanis is proposed to be reduced from 2 to 1 percent.

Budget 2023-24 Taxes and non-taxes items

A fixed 10% tax has been proposed on the rental income of overseas Pakistanis of Rs 2 crore per annum, an additional one percent super tax has been proposed on profits of Rs 15 crore to Rs 20 crore per annum.

Filing of tax returns on time will also be mandatory, if the tax return is not filed there will be a penalty and if not filed on time there will also be a penalty.

According to sources, an additional penalty of Rs 200 per day has been proposed for tax defaulters. A maximum penalty of 25% has been proposed for non-filing of tax returns, and a penalty of Rs 2,000 has also been proposed for non-filing of withholding statements under section 165.

Exemption on IT Exports and Freelancers

IT exporters will be allowed to import hardware worth $50,000 duty-free, and freelancers on $24,000 annual IT exports will be exempted from sales tax registration and reporting.

The concessional rate of 0.25 percent will be maintained for the next three years to boost exports of the IT sector.

The rate of sales tax on IT services has been reduced from 15% to 5% in the limits of Islamabad. To promote investment in IT sectors, it has been proposed to give a 20% concessional tax on lending to banks. While SMEs were given the status to develop IT.

Exemption of Duty on Raw Material Sollar Panels & Herbal Medicines

Prices of herbal and Greek medicines are likely to come down, solar panels will be cheaper, customs duty on manufacturing raw materials has been abolished, and duty on import of solar panel machinery has also been removed.

Increase in Fund of BISP

The budget of the Benazir Income Support Program BISP has been increased from 360 billion rupees to 400 billion rupees, the limit of depositing money in welfare savings certificate and Shahada account has been increased from 5 million rupees to 75 lakh rupees, house building finance for indebted widows. The government will also pay off loans up to Rs. 1 million.

Giving good news to the people of Karachi in the budget, 17 and a half billion rupees will be provided in the next financial year for the four projects to provide water to Karachi.

An amount of Rs 59 billion has been earmarked for the 2160 MW Dasu Power Project. 12 billion rupees have been allocated for the completion of the 1200 MW Jamshoro Power Plant.

Another 10 and a half billion rupees have been set aside for the completion of the Mohmand Dam, and only 20 billion rupees will be saved for Diamer Bhasha Dam next year.

During the next financial year, the federal government will carry out development works worth 1150 billion rupees across the country, the provinces will spend 1559 billion rupees on their own development programs.

267 billion rupees will be spent on the transport sector and construction of roads, 100 billion rupees have been allocated for water supply, and 89 billion rupees have been set aside for energy projects including electricity and gas.

A special fund of 57 billion rupees has been included in the development program for the development of districts of former FATA in Khyber Pakhtunkhwa, 32 and a half billion rupees have been set aside for Azad Kashmir and 28 and a half billion rupees for Gilgit-Baltistan.

In the budget, 82 billion rupees have been allocated for education and higher education, and 26 billion rupees for the health sector.

In the budget to be presented by the finance minister, the country’s growth rate has been set at three and a half percent for the next financial year.

The rate of inflation is estimated to be 21%, the target of domestic exports has been set at 30 billion dollars, and the remittances of Pakistanis abroad have been set at 33 billion dollars. One thousand 74 billion rupees were allocated.

Salary increases by 30-35 percent while pension increases by 17.5%. Employees lying between grades 1-16 will get a 35% increase. Employees working in BPS -17 and above will receive a 30% increase.

Federal Budget 2023-24 approved by Prime Minister