Punjab to present ‘tax-free’ budget on June 12

LAHORE: The Punjab government has decided to present a tax-free budget for the fiscal year 2024-25 on June 12, Provincial Finance Minister Mujtaba Shujaur Rahman said on Monday.

In a statement, the provincial minister said that the federal budget is scheduled to be announced on June 11, and Punjab will follow suit a day later.

However, Shuja said, if the federal government changes the date, Punjab will present its budget on June 14 instead.

The upcoming budget will be tax-free, the minister announced, adding that the Punjab Kisan Card will be launched on August 14 with a package of Rs400 billion.

Additionally, the government is in talks with foreign companies to improve public transportation in the province, Shuja revealed.

Earlier in May, it was reported that Pakistan government will present the financial year 2024/25 annual budget on June 10.

The budget was originally due to be presented on June 7 but was delayed because of Prime Minister Shehbaz Sharif’s visit to Beijing from June 4 to June 8, said sources.

Prime Minister Shehbaz Sharif will visit China from June 4 to 8 at the invitation of President Xi Jinping, Ministry of Foreign Affairs (MoFA) said on Friday.

During the three-segment trip, the prime minister will visit the cities of Xi’an and Shenzhen, besides Beijing, the Foreign Office spokesperson Mumtaz Zahra Baloch announced at her weekly press briefing.

Inflation is likely to increase in the 2024-25 federal budget as the International Monetary Fund (IMF) has ‘asked’ Pakistan to reduce sales exemptions further.

Read more: IMF ‘dissatisfied’ with Pakistan’s steps of bringing real estate into tax net

As per details, the prices of milk, tea, sugar, rice, flour, and packed milk are likely to increase in the budget 2024-25 as the international lender has asked Islamabad further to reduce the sales tax exemptions for fresh loan.

The IMF has demanded imposing a 5-10% sales tax on the zero-rated sales tax sector, the sources said and added that pressure is being asserted to end tax exemptions in FATA and PATA by June 30.

According to budget proposals for the FY2024-25, Pakistan is likely to end exemption on sales and income tax, phase-wise.