Fiscal Budget 2019-20

[Zibago]

The danger here is the opposition will start doing exactly what PTI did when it was seeking power. Pakistan will suffer yet again.

They dont have mass street power
PTI had that and it exploited it to the max

 

[Zulfiqar]

It's believed that reducing military expenses is important point of austerity measure for the imf deal

What happens to it now as pakistan refused to do so??

It reduced as percentage of budget year over year.

 

[Zhukov]

1,000 Monthly Tax deduction on 70,000 Salary.
Keep increasing Tax Slabs for Salaried Individuals while giving us no refunds for the excess tax we have paid.
All the Payable Tax is already deducted from our salaries. Then what is the point of Withholding Advance income tax on Internet, Cellphones, Electricity Bills?. We Responsible Salaried Filers are always paying more tax then legally required and we don't get any refunds.
No Medical Insurance, No Government provided Education up to higher secondary (Not even average let alone quality), Not even protection under law enforcement even having clean record.No Government Sponsored Post Retirements Senior citizen Benefits to Private Sector Employees. Fuel at 112 Rs. Even Bare bone living is getting out of hands.
I get it why government is doing this. And being a responsible citizen i accept it and will tighten my budget even further for my country. But this cannot be accepted as a normal. Their cannot be any progress when we cannot save anything.

If government fails to give us Health insurance and free Children Education up to secondary in return within 2 3 years of this heavy taxation then i am afraid some one like me have no other option left to either become a tax evader or (the Most Painful Step) leave this country for a better future for my Family. At least give us some sense of belonging to the state. State behaves like a Coercive Authoritarian Master on every aspect and not like a mother. Despite of people like us abiding by every law. Avoiding any shady corner.
God Bless Pakistan

 

[Surya 1]

The budget projects the economy will grow at a rate of 2.4 per cent ─ a massive decline from last year's projected growth rate of 6.2pc ─ and its revised growth rate of 3.3pc.

This is serious. generally I do not mind any of such figure but it seems that this will turn into a very high inflation and low income scenario in which the life of ordinary citizen shall become a hell.

My free advice to Pakistan government is to spend more and more on basic things. Agriculture, Animal husbandry, Education and solar electricity. This will bring the leaving standard of people up and make their life easy. There will be a feel good factor in Pakistan which shall pave the way for further development. Invest in basic to get the benefits 20 years later. Recent development post exit of Nawaz has badly hurt the Pakistan economy. One should not expect any reversal in near future. Now this will not simply improvement but it will be building from scratch.

 

[ziaulislam]

Agreed. But the problem is the way the gov. wants to end this blanket tax relief. The industry/exporters claim that if the refund payments are not made for years. If gov. wants to implement this proposed system them need to make sure refunds are paid at time of presentation of documents, even that means an investment being blocked for around 3 months (which is huge). If the refund delays mean the investment is blocked for 5-6 months (and this is the best case scenario) you can understand how the industry will suffer.


There will be some agitation but it wont be as wide spread as what we saw in PMLN time. This is what i feel!

so its lack of trust..
industrialist are not doing its job by lying
and govt is not doing its job by refund processing, the current govt has done a better job at refunds

so refund should be immediate by third party bank but tax should be at manufacturing stage

Agreed to most part of your post. But what is in there for a filer who pays taxes and has been doing this since long. I am a filer since 21 years and in service since the same. Taxes are deducted at source. what do i get(in daily life) for paying my taxes regularly that a non payer or a non filer won't get. even they can by property (invest money to earn more profit?), cars etc. This is the routine of every previous govt. so no change there. I am willing and ready to pay even hiked taxes but differentiate me from the non payers.

I have a case for you, there is a famous road in Multan Named as Bosan road ( one of the business hubs) a single marla shop can cost any thing from a crore to two depending upon location. Business activity is high there, rentals for same are around 40K min. Still u won't find a vacant one easily as earning s are high due to business activity. A non filer over there has an asset value multiple times higher than me (in fact lot of job oriented people cannot buy a property there in their whole life), earns big and then evades taxes (direct), pays indirect taxes just as me and remains un affected in the budget while I get the beating.

correct, the single aspect that will determine IK failure or not will be what happens this year.

the crisis of default is over, IMF program is signed, now there is no excuse to go hard on non fillers, confiscate their business if they dont declare or file..

till now the law allowed non filers to operate under declared fake accounts(before benami acts)

so i will be able to tell by December whether IK is serious or just kidding

 

[Zulfiqar]

This is serious. generally I do not mind any of such figure but it seems that this will turn into a very high inflation and low income scenario in which the life of ordinary citizen shall become a hell.

My free advice to Pakistan government is to spend more and more on basic things. Agriculture, Animal husbandry, Education and solar electricity. This will bring the leaving standard of people up and make their life easy. There will be a feel good factor in Pakistan which shall pave the way for further development. Invest in basic to get the benefits 20 years later. Recent development post exit of Nawaz has badly hurt the Pakistan economy. One should not expect any reversal in near future. Now this will not simply improvement but it will be building from scratch.

The dawn article is biased as usual.

The present govt has allocated PKR 180 B (Around 1185 M USD) for Benazir income support programme under grants and transfers. Previously it was PKR 124.7 B last year (Revised to PKR 118.66 B). They just moved the allocation to another budget head. Dawn conveniently forgot that.

Under social protection head, the govt has further budgeted PKR 190.59 B (1253 M $). This was increased from PKR 2.396 B (Revised to PKR 2.672 B).

That is PKR 370.59 B (2,438 M $) for supporting the lower income population.A huge increase over last year.

 

[Surya 1]

The dawn article is biased as usual.

The present govt has allocated PKR 180 B (Around 1185 M USD) for Benazir income support programme under grants and transfers. Previously it was PKR 124.7 B last year (Revised to PKR 118.66 B). They just moved the allocation to another budget head. Dawn conveniently forgot that.

Under social protection head, the govt has further budgeted PKR 190.59 B (1253 M $). This was increased from PKR 2.396 B (Revised to PKR 2.672 B).

This is not an opinion piece. They quote the DATA released by Government.

 

[Sugarcane]

Non-PSDP development expenditure, which includes expenditure heads such as Benazir Income Support Programme and Kamyab Jawan Programme, is estimated at Rs85.8 million.

However, the budget for the Benazir Income Support Programme was reduced to zero this year.

The above two statements are contradictory if I am not missing something.

The government estimates net revenue will reach Rs3,462.1bn in FY20 ─ an increase of 11pc from last year's budgeted net revenue.

Total tax revenue has been budgeted at Rs5,822bn. The bulk of the revenue will be drawn from FBR taxes, which are projected to reach Rs5,555bn in the coming fiscal.

What's the meaning of net revenue? Where difference between tax revenue (5,822bn) and net revenue (3,465bn) will go?

 

[Arsalan]

so its lack of trust..
industrialist are not doing its job by lying
and govt is not doing its job by refund processing, the current govt has done a better job at refunds

so refund should be immediate by third party bank but tax should be at manufacturing stage

yes the refunds have been much better under this current gov. still need to improve. Please understand that it is not possible for small and medium level exporters to have this kind of investment blocked for 5 months (and with a fear that it will be way over 5 months if history of such dealings is taken into account).
"industrialist are not doing its job by lying", sorry, lying about?

Yes the refunds should be via third party. This is what the export industry was demanding at last when it was made certain that the tax are coming for sure. The demand was that the refund is paid by the bank at the time of presentation of shipment documents to the bank as that will ensure, A) that the money is blocked for 2 to 3 months compared to 5 months and that too uncertain, B) there will be little chance of any delay so the uncertainty factor (killer for business) will be dealt with.

However the gov. is saying they will make sure refunds are made in 2 months time. This means 5 months of investment blockade. Now the next step will be to wait and see if the gov. actually manages to pay the refund even in 2 months as they promise.


However, expect some considerable agitation in Faisalabad, Lahore, Sialkot, Karachi, Multan starting this week.

correct, the single aspect that will determine IK failure or not will be what happens this year.

the crisis of default is over, IMF program is signed, now there is no excuse to go hard on non fillers, confiscate their business if they dont declare or file..

till now the law allowed non filers to operate under declared fake accounts(before benami acts)

so i will be able to tell by December whether IK is serious or just kidding

ABSOLUTELY!

 

[Zulfiqar]

This is not an opinion piece. They quote the DATA released by Government.

They did not do their job correctly as they are biased. I am also quoting figures from the budget.

The above two statements are contradictory if I am not missing something.





What's the meaning of net revenue? Where difference between tax revenue (5,822bn) and net revenue (3,465bn) will go?

Net revenue subtracts the provincial share.See page 50 of below document.

 

[Sugarcane]

Net revenue subtracts the provincial share.See page 50 of below document.

Thanks, I missed that part totally. IMHO, interest & defense expenditures should be deducted from provincial and federal budget as per formula of funds allocations.

 

[WAJsal]

The Reforms Regarding Real Estate and Debt Instruments Are Truly Revolutionary If Implemented This Can Transfer Trillions Of Rupees To More Productive Sectors.I Suggest People Watch Kamran Khan On This

Can you elaborate on this? Thank you.

 

[zulu]

Check from 27:40 for property

Can you elaborate on this? Thank you.

 

[Surya 1]

They did not do their job correctly as they are biased. I am also quoting figures from the budget.




Net revenue subtracts the provincial share.See page 50 of below document.


View attachment 564751

Where is the GDP figure and growth rate figure to prove above data wrorng?

Development expense is less than half of Interest payment and less than defense budget and jut 1/7th of non planned expenditure. This is a sorry state of affairs. What development will happen with this tiny development budget figure?

 

[Sugarcane]

To reduce circular debt, the amount from budget for energy distribution and to increase transmissions lines accordingly to generating capacity is really good step.

This will help our industry & total production cost can be regionally competitive in future.

Government will be borrowing 2,168 billion as per budget. So, that's simply taking new loan for paying another one - problem will not fix until we achieve balanced (if not surplus) budget. However, if government really fix electricity distribution and transmission system than we surely will be saving a lot, same way fixing FBR can remove budget deficit the revenue even with currently imposed taxes but nothing concrete is done yet on this very important and critical factor.

Tu usa beth kei bakwas kar rha hai. Jo tax pay kar rhe hain ab unki kya ghalti? Yeh government jo existing tax base hai usi ko hi chodei ja rhi hai... bajae logo ko force karei kei woh tax dei. In bc nei budget kei andar even yeh bi dala tha Non-Filers can now purchase property, **** PTI seriously. People have less and less incentives now to become filers. There should be extremely harsh shit done on non filers for example they cant buy cars, cant go overseas, cant fuckin buy property but PTI government is actually favoring these non filers with their bullshit policies

Well I do agree, Why the f*ck people will file tax return, get themselves documented where they can be asked questions about their assets, declared income and tax paid when there's no incentive or punishment for not doing so. IK is surely an idiot of highest level if he think that his sermons will make people taxpayers and filers.

Baqi sab chodo yaar meri salary is baar sirf 2600 rupay badhi hai

Agar tumhari salary barh kar 50,001 ho gai hai tu apni company se kaho aik rupaya increment kum kar dain warna lainay k dainay par jaain gay.