The salient features of the budget 2021-22 are as follows:

  • PKR 244 billion for Gwadar airport and highway.
  • PKR 20 for development of south Balochistan
  • PKR 47 billion for Gilgit-Baltistan
  • PKR 60 billion for Azad Jammu and Kashmir
  • PKR 739 for Karachi transformation plan
  • PKR 12billion for agriculture
  • PKR 260 billion for the Ehsaas programme
  • PKR 900 billion for public sector development programs, which has been increased by 40%. The amount will be spent on water distribution, road infrastructure, special economic zones, combatting climate change, among other projects
  • PKR14 billion for Neelum-Jhelum hydro-power plant
  • PKR 118 billion for energy and power projects
  • PKR 25 billion for small dams in Sindh
  • PKR 23 billion for Diamer and Bhasha dams
  • PKR 10b for Kamyab Naujawan programme
  • PKR 22 billion for Jamshoro coal power plant
  • PKR 16 billion for KI, KII projects in Karachi and Tarbela power plant
  • PKR 54 billion for the development of KP’s merged districts
  • PKR 14 billion for tree plantation programs and combatting climate change
  • PKR 100billion for special development packages for the development of poorer cities
  • PKR 1.1 billion for the procurement of coronavirus vaccines to meet the target of vaccinating 100 million people by June 2022
  • PKR 100 billion for a covid-19 emergency fund
  • PKR 66 billion for HEC and education programs
  • PKR 12 billion for SME support programs

Other prominent features are:

  • The minimum wage to be PKR 20,000.
  • No new tax on salaried people.
  • Pension to increase by 10%.
  • For Grade 1 to 5 officers, integrated allowance to increase from PKR 450 to PKR 900.
  • Salaries of the government employees to increase by 10%.
  • Special technology zones will be formed in the country. Plants, machinery, and other equipment will be tax-free in these zones.
  • FBR to form special retail cells to facilitate people.
  • Action to be taken against those harassing taxpayers. Government to use tax machinery against those not paying taxes and those not filing them.
  • Withholding tax reduced by 40%. There will be no withholding taxes on banking transactions, margin financing, air travel services, debit card and credit transactions and discovery of minerals.
  • Withholding tax on mobile phones will be reduced by 10%, and then to 8%.
  • The government has reduced the Capital Gain Tax from 15% to 12.5%.
  • No federal excise duty on 850cc locally produced cars.
  • Sales tax on locally manufactured cars reduced from 17% to 12.5%.
  • Sales tax on locally made electric cars has been reduced to 1% from 17%.
  • No tax on certain locally made heavy motorcycles.
  • No import taxes on books and magazines.
  • No Customs duty on animal vaccines.
  • To facilitate the tourism sector, there will be either 0% Customs duty or discount on raw material being used in the sector.

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