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KP To Present Budget For Eight Months Today

Peshawar (October 15, 2018): Khyber Pakhtunkhwa government will present the eight-month annual budget for the financial year 2018-19 today.

The total outlay of budget is over Rs613 billion.

KP Finance Minister Taimoor Saleem Khan Jhagra will present the budget for the financial year 2018-19 in the provincial assembly.

The session was called on October 11 earlier but was postponed till Monday (today).

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It was notified by Secretary Provincial Assembly in Peshawar.

Earlier, Khyber Pakhtunkhwa caretaker government presented 198 billion rupees budget for four months of the current financial year.

Earlier on September 18, Finance Minister Asad Umar presented the supplementary budget in National Assembly session.

The finance minister said fiscal deficit in FY18 amounted to 6.6 per cent of the Gross Domestic Product (GDP) even though the target was set at 4.1 per cent.

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While presenting the supplementary budget in the National Assembly session, federal minister for finance  Asad Umar announced that non-filers can now buy new cars and property. The PTI government has reversed the former government’s ban on these purchases by non-filers.

“The country stands at the same place where it was after five years,” Umar lamented, adding that the fiscal deficit might reach to 7.2 per cent [Rs2,900 billion] in FY19.

Umar recalled that the current account deficit increased from 2.5 billion dollars in 2012-13 to 18 billion dollars in FY18.

“In the five-year term [of the PML-N government], foreign debt increased by 34 billion dollar, while foreign exchange reserves continued to decline speedily,” Umar recalled. He further said that the depleting foreign exchange reserves have led to the Pakistan rupee’s depreciation.

Asad Umar said that govt withdraws the decision to increase petroleum development levy.

Rs5 billion relief provided to export industry, said Minister, adding that minimum pension is set at Rs10,000.Duty on expensive mobile phones to be increased said, Minister. Asad Umar said duty on 1800cc and above vehicles set at 20 per cent.

Non-filers to pay 0.6 per cent tax bank transactions, said Finance Minister.

The new health card system will allow citizens to buy medicine at lower prices. According to the finance minister, 4.5 million citizens will benefit from this scheme.

The government also proposed to remove regulatory duty on raw materials used by export industries. “Zero duty on raw materials will benefit the export industries by Rs 5 billion,” Umar noted. The finance minister said that unchanged gas tariff for the export industries is expected to provide a relief of Rs 44 billion to the export industry.

Furthermore, an increase in tax on expensive mobile phones was proposed.

“The previous government announced income tax relief for people belonging to all social stratas but we have decided to tax the upper class but the lower income groups will still be relieved of the tax as there is no taxation until you earn more than Rs1200,000 a month,” said Umar.Asad Umar said that the government is removing the petroleum levy imposed by the previous government while increasing the duty on expensive smartphones and luxury cars.

“I was astonished to learn that a cigarette packet which costs 50 to 60 dollars abroad is being sold for sometimes less than a dollar in Pakistan. Why we are selling this poison so cheap, so we have decided to increase taxation on all tobacco products,” said the minister.

He maintained that smartphones, only the expensive ones, will be taxed.

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