Budget of Pakistan For Year 2012-13 Announced

Today on 1st June 2012 budget of Pakistan has been announced for the year 2012-13 in which government fixed Rs. 545.36 billion for defense, Rs. 47 billion for education and Rs. 7 billion for health and fuel prices also decreased.

I condemned the reduction in education spending from 2 per cent to 1.8 per cent in the federal budget.

Objectives of the Budget:

1. Reducing the higher rates of Sales Tax from 22% and 19.5% to 16%.
2. Reducing Federal Excise Duty on cement from Rs. 500/ PMT to Rs. 400/ PMT
3. Elimination of excise duty on 10 items with the objective to further phasing out of Federal Excise regime.
4. Streamlining the sales tax regime by substituting zero-rating on certain items with a view to stop illegal refunds.
5. Increasing tax incidence on cigarettes by revising upward price tiers.