Punjab Assembly approves Rs5.4tr budget for FY 2024-25

LAHORE: The Punjab Assembly on Wednesday approved Rs5.4 trillion budget for the Fiscal Year (FY) 2024-25 by a majority vote, ARY News reported.

The new provincial revenues and budget measures will take effect from July 1, 2024, wherein taxes that had been in place for 70 years have been updated, said a statement issued today.

The Finance Bill was presented by Punjab Minister of Finance, Mian Mujtaba Shuja-ur-Rehman, and was approved by a majority vote under the chairmanship of Speaker Malik Muhammad Ahmad Khan. No new taxes were introduced, but existing taxes were rescheduled.

According to the Finance Bill passed by the Punjab Assembly, residential properties valued up to Rs5 million will be tax-free starting July 1. Commercial properties will incur a 0.07 per cent tax on their total value.

Properties valued between Rs10 million and Rs25 million will be taxed at 0.08pc, while those over Rs25 million will face a 0.09pc tax.

The registration fee for motorcycles and scooters is set at Rs1,500, with an additional 10pc annual fee for registration transfer within 10 years. Vehicles up to 1000cc will have a registration fee of Rs20,000, with a similar 10pc annual transfer fee. Vehicles between 1000cc and 2000cc will be taxed at 0.02pc of the purchase price, and those over 2000cc at 0.03pc.

Punjab is expected to receive Rs3,683.1 billion from the NFC Award and Rs960.3 billion in provincial revenues, a 54pc increase from last year.

The Punjab Revenue Authority is projected to collect Rs300 billion (a 25pc increase), the Board of Revenue Rs 105 billion (a 6pc increase), and the Excise Department Rs57 billion (a 25pc increase). The total budget for the Fiscal Year 2024-25 is Rs5.4 trillion, with an estimated total income of Rs4,643.4 billion.

During discussions on increasing the salaries and allowances of Punjab Assembly members, opposition member Rana Aftab raised a point of order questioning the government’s authority to increase these payments, suggesting that assembly matters should be decided by the Speaker.

Speaker Malik Ahmad Khan acknowledged the concern and noted the need to examine the question legally. Treasury member Sami Ullah Khan agreed, emphasising the need for the assembly to adjust salaries based on inflation.

Opposition member Ahmar Bhatti suggested that the legislature should control its own salaries and allowances. Treasury member Raja Shaukat Bhatti added that members should receive benefits according to the Blue Book.

Chief Whip Rana Shahbaz from the Sunni Ittehad Council urged the Finance and Industry Ministers to address issues faced by cotton and rice farmers. The Speaker instructed the ministers to engage with ginning factories if they were on strike.

Opposition member Rashid Tufail highlighted the increasing incidents of child abuse in Kasur, and opposition member Hamad Sana reported a recent case in his constituency. The Speaker directed the Minister for Parliamentary Affairs to take immediate action on incidents of sexual crimes against children. The session was adjourned until 2 PM on Thursday, June 27.