The budget for the year 2021-2022 was presented in the National assembly on Friday. The government of pakistan tried its best to overcome the high price ranges of products so that the living standard of people may be improved. Prime Minister of Pakistan has also made a clear statement about this budget that everyone would be happy because there is a lot of reduction of taxes in t he upcoming budget. And it is true to some extent because because this budget has relief for many industries and business owners. However the budget has different imposition for different type of consumers and sellers. Lets take an overall look of this budget.
About 36% budget is fixed for the Debt repayment, 16.2% budget is specified for the defence, 11.4% is for development ,13.7% for provinces, 5.7% for pensions, 5.6 for federal expenses, 8% for subsidies, 1.2% for corona emergencies and 2.2% budget is specified for Salaries.
In other words if we calculate the percentage of direct and Indirect Taxes, then it includes 66% Indirect Taxes and 33% Direct Taxes. Although the budget is growth oriented but it may cause demand pull inflation. The positive impact will be that the purchasing power of people will be increased and jobs will be created.
There is different type of tax imposition positive and negative aspects according to the variability of product like there is profit for the auto mobile companies because locally manufactured cars having an engine capacity of 850cc or less will be exempted from VAT while the sales tax will also be reduced. If some buyer want to get car on money then buyer have to pay extra cash to get instant delivery and in his condition he will not to wait for months.
Government of pakistan has imposed taxes on mobile cars . The consumers have to pay Rs 1 per call if its duration exceeds from 3 minutes and Rs 0.1 on every sms and Rs 5 on every GB of iinternet.However the energy minister Hammad Azhar denied to the FED applied to internet data as prime minister and federal cabinet had not approved it. According to his tweet ” It will not be included in the final draft of the finance Bill that is placed before parliament for approval,” .