The government has announced the budget for the next fiscal year with an outlay of Rs 7132 billion. Under the new budget no new taxes have been imposed. The GDP growth for the next fiscal year has been targeted at 2.1 percent with 6.5 percent inflation.
Rs45bn has been allocated for tax relief to industries and individuals. Of these, Rs25bn has been given in reduced duty rates and abolishing of two per cent additional customs duty on industrial raw materials and semi-finished products.
The second major relief to the industrial sector is reducing the slab of 11pc on 90 tariff lines to 3pc or zero. These include raw materials and semi-finished products. Furthermore, the government reduced customs duty on 200 tariff lines from 20pc, 16pc, and 11pc to lower rates.
Under the new budget withholding tax has been reduced from 5pc to 2pc on raw materials and 1pc on capital goods while regulatory duty on hot-rolled coils of iron and steel has been reduced from 12.5pc and 17.5pc to 6pc and 11pc, respectively.
Industry experts appreciated and termed the budget the best under the current circumstances.
