Budget 2021-22: Govt proposes tax cut to bring down car prices

ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government is all set to unveil the federal budget 2021-22 in the National Assembly today (Friday).

Well-placed sources told ARY News that the federal government has proposed to cut tax and duties on small cars in the budget for the fiscal year 2021-22 in order to bring their prices down.

Also Read: With Rs 8tr outlay, PTI govt to unveil budget for FY22 today

They said sales tax, excise duty and additional customs duty on cars up to 850cc will be slashed.

Besides, the sources added, the government has proposed to reduce tax on new motorcycle brands and tractor models.

Also Read: FBR aims for over Rs2,500bn sales tax

The sources relayed that the federal government has proposed Rs1,330 bn defence allocation with Rs3,105 billion to be earmarked for interest payments. Gross domestic product (GDP) growth target has been set at 4.8 per cent in the budget 2021-22.

The Federal Board of Revenue’s (FBR) tax collection target for the forthcoming fiscal year will be set at Rs5,829 billion, they said, adding the government has projected export target at $26.80 billion while import at $55.30 billion.

The federal government will pitch the current account deficit target at $2.30 billion in the budget 2021-22 while foreign remittances at $31.30 bn. It plans to earmark Rs994 billion for various grants while Rs501 billion for subsidies.