Finance Ministry Rebuts News About Mini-budget

ISLAMABAD, (UrduPoint / Pakistan Point News - 19th Aug, 2022 ) :The Finance Ministry here on Friday rejected the news item published in a section of press claiming that government plans to present mini-budget for collection of Rs.80 billion revenue through ordinance.

"The news is misleading and factually incorrect. There was no mention of imposition of Rs.80 billion new taxes even through promulgation of ordinance," the ministry said in a statement.

It clarified that Federal Minister for Finance and Revenue, Miftah Ismail in his press conference on August 18, 2022 said that the government had decided to lift the ban on the imported items and withdraw fixed tax on retailers imposed through the electricity bills.

The government would promulgate an ordinance in few days to charge variable taxes to traders, starting with 5 per cent sales tax and 7.5 per cent income tax will remain in place for three months for all traders.

From October 1st, 2022, these taxes would be on consumption of 50 units, after which these taxes would gradually increase for higher consumption units. �"Instead of fixed tax on retailers that will reduce revenue of Rs. 42 billion, we will now revert to the old system of ad valorem tax," it added.

This will mean a reduction in FBR revenue of Rs.15 billion, which would be compensated by imposing taxes of Rs.36 billion on tobacco and cigarettes.