Budget 2024-25: Hike in levy on petrol, diesel proposed

ISLAMABAD: The Pakistan Muslim League-Nawaz (PML-N) led federal government proposed a significant increase in the petroleum levy on petroleum products, ARY News reported.

Presenting the federal budget for the fiscal year 2024-25, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said that the government proposed an increase of 33 percent on petrol and diesel.

The National Assembly has been proposed by the government to okay an increase of levy on petrol and diesel from Rs 60 to Rs 80 per litre.

Similarly, the proposal sought a 50 percent increase in the levy on high-octane, light diesel, and ethanol has been increased. After approval of the proposal, Rs 50 would be charged on per litre high-octane, light diesel, and ethanol.

The finance minister said that the government has proposed 18 percent sales tax on different categories of mobile phones.

The federal government proposed significant changes in tax policies, aimed at increasing revenue. Similarly, there is a proposal to withdraw exemptions on various items depending on their categories.

The government also proposed to increase import duties on luxury cars worth over $50,000. The budget proposal also asked the House to increase the import duty on steel and paper products.

Muhammad Aurangzeb presented Pakistan’s budget for the fiscal year 2024-25 with a total outlay of over Rs18 trillion amid protest by the opposition lawmakers belonging to Pakistan Tehreek-e-Insaf (PTI)-backed Sunni Ittehad Council.

The National Assembly (NA) session began with recitation of the Holy Quran followed by the national anthem with Prime Minister Shehbaz Sharif also in attendance.

At the outset of his speech, Finance Minister Aurangzeb said that PM Shehbaz Sharif and his team should be congratulated over his efforts in the past one year to revive the economy. He vowed that Pakistan will soon be on the path of inclusive and sustainable economic growth.

The finance minister announced a 101 percent increase in the development budget, noting that 81pc has been allocated for ongoing schemes and 19pc for new schemes.

He also announced development projects in Azad Kashmir and merged districts, adding that completion of ongoing development projects will be government’s top priority. “The government would focus on export, equity, empowerment, environment, and energy under the 5-E framework,” he added.

The government has allocated Rs5 billion allocated for the Quaid-e-Azam Health Tower in Islamabad, Rs7bn for development projects in the poorest districts, Rs6bn for the Karakoram Highway project, Rs4bn for digitalisation of the national economy, Rs2bn for the establishment of Danish school in Islamabad and Rs5bn for the establishment of 7 Danish schools in Azad Kashmir and Gilgit-Baltistan.

Referring to the energy projects, the finance minister said Rs21bn has been allocated for a 600 MW power plant in Jamshoro, Rs14bn for a 500 kV transmission line in Lahore, Rs18bn for the Karachi Coastal Power Project and Rs45bn for the Mohmand Dam Hydro Power Project.

The budget also includes relief measures for government employees, including 25pc increase in salaries for BPS1-16, 20pc increase in salaries for BPS17-22, and 15pc increase in pensions for retired employees. Meanwhile, the minimum monthly wage has been increased from Rs 32,000 to Rs 37,000.