Today marks a pivotal moment as the federal budget for the fiscal year 2025-2024, amounting to Rs18.9 trillion, is set to be presented in the National Assembly.
However, the anticipation surrounding this budget is coupled with concerns over proposed tax reforms and potential price hikes on various consumer goods.
In the upcoming budget, the government plans to withdraw tax exemptions from several sectors, paving the way for a slew of additional taxes. It is estimated that these measures are likely to increase the prices of hundreds of items and introduce an additional tax burden of Rs2,000 billion on consumers. Consequently, the prices of hundreds of items are expected to rise, impacting the purchasing power of consumers across the nation.
Also Read: Rs18.9 trillion Federal Budget 2024-25 to be presented today
Among the items likely to see a price increase are:
- Old imported cars
- Imported mobile phones
- Imported food items
- Chocolate
- Milk
- Yogurt
- Clothes
- Soap, shampoo, hair colour, make-up, perfumes, and lotions
Imported milk and clothing, in particular, are expected to become more expensive.
The Federal Board of Revenue (FBR) has proposed an overall tax target of Rs12,970 billion for the fiscal year. To achieve this target, the government plans to increase the General Sales Tax (GST) rate from 18% to 19%, generating an additional revenue of Rs100 billion.
Also Read: PPP, PML-N settle differences over federal budget; PPP pledges support
Additionally, a 6% General Sales Charge (GSC) is proposed to be imposed on petroleum products, with an estimated revenue generation of Rs180 billion.
Federal Finance Minister Muhammad Aurangzeb is set to present the highly anticipated federal budget for the fiscal year 2024-25 in the National Assembly today. The proposed budget stands at approximately Rs18,900 billion, aiming to address various economic challenges while fostering growth and stability.
Government employees can expect a 10 to 15% increase in their salaries and pensions. The increment is anticipated to provide significant relief, especially to lower-grade employees.
