Shaukat Tarin hints at increase in taxes


Former finance minister Shaukat Tarin speaks on the floor of the Senate in Islamabad, on June 23, 2022. — YouTube/PTVNews

ISLAMABAD: The International Monetary Fund (IMF) has asked the Pakistani government to impose further taxes of Rs440 billion, former finance minister Shaukat Tarin said Thursday.

“The actual budget will be unveiled now,” the ex-finance minister told the Senate after the money lender and Pakistan reached a “broad agreement” on the budgetary and fiscal measures for the next fiscal year (FY) 2022-23.

The PTI leader, speaking on the floor of the Senate, said the Upper House of the Parliament is fulfilling formalities by debating the budget as the “actual budget” will be presented in the National Assembly — after it is tuned in line with the IMF’s demands.

The statement came hours after Finance Minister Miftah Ismail revealed in a press conference that the coalition government had imposed taxes on the rich in the budget for the next FY23.

Miftah said another 1% supertax would be imposed on people earning more than Rs150 million, 2% on income of more than Rs200 million, 3% on people earning more than Rs250 million and 4% on income of more than Rs300 million per annum.

He revealed that he would wrap up the federal budget for the next fiscal year 2022-23 tomorrow with his closing speech in the Lower House of the Parliament.

Although the finance minister did not disclose further details about the agreement with the IMF, according to details available with Geo.tv and Ismail Iqbal Securities, here is a list of some other proposed changes in the federal budget.

Item

Budget

Revised

Budget outlay increased Rs9,502 billion Rs9,900 billion
Change in FBR’s collection base in FY22 Rs7,004 billion Rs7,442 billion 
Poverty tax to be imposed in slabs >Rs300 million, 2% tax >Rs150 million, 1% tax
>Rs200 million, 2% tax
>Rs250 million, 3% tax
>Rs300 million, 4% tax
Pension target revised Rs530 billion Rs609 billion
Civilian govt expenditures revised  Rs550 billion Rs600 billion
Gas Infrastructure Development Cess collection target reverted due to litigation Rs200 billion No target set
Custom duty collection target revised Rs953 billion Rs1,005 billion
Increase in personal income tax target Rs47 billion relief Not available 
Annual tax exemption limit revised

Rs1.2 million Rs600,000



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