18 per cent sales tax proposed on mobile phones: Budget 2024-25

ISLAMABAD: The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, unveiled significant changes in tax policies while presenting the federal budget for the fiscal year 2024-25. The announcement, made on the floor of the National Assembly, outlined several new measures aimed at bolstering the country’s revenue.

In his budget speech, Aurangzeb revealed a proposed 18 per cent sales tax on various categories of mobile phones. Additionally, he highlighted the government’s intent to withdraw exemptions on certain items based on their classifications, marking a shift towards broader tax inclusivity.

A notable proposal included in the budget is the increase in import duties on luxury cars valued over $50,000. Furthermore, the budget suggests heightened import duties on steel and paper products, reflecting the government’s strategy to increase revenue from high-value imports.

The budget for the upcoming fiscal year totals Rs18 trillion, as announced by Finance Minister Aurangzeb. The session commenced with a recitation of the Holy Quran, followed by the national anthem, with Prime Minister Shehbaz Sharif in attendance.

At the beginning of his address, Aurangzeb praised Prime Minister Sharif and his team for their efforts over the past year to rejuvenate the economy. He assured the assembly that Pakistan is on the cusp of achieving inclusive and sustainable economic growth.

A significant highlight of the budget is the 101 per cent increase in the development budget, with 81 per cent allocated for ongoing projects and 19 per cent for new initiatives. Aurangzeb emphasised the government’s commitment to completing existing development projects, particularly in Azad Kashmir and the merged districts.

Key allocations in the budget include Rs5 billion for the Quaid-e-Azam Health Tower in Islamabad, Rs7 billion for projects in the nation’s poorest districts, Rs6 billion for the Karakoram Highway project, Rs4 billion for the digitalisation of the national economy, Rs2 billion for establishing a Danish school in Islamabad, and Rs5 billion for the creation of seven Danish schools in Azad Kashmir and Gilgit-Baltistan.

The finance minister outlined the government’s focus on the “5-E framework,” which prioritises export, equity, empowerment, environment, and energy. He assured the assembly that these initiatives are designed to set Pakistan on a path towards economic stability and growth.

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