Key Highlights of Budget 2024-25
Finance Minister Muhammad Aurangzeb presented the federal budget for 2024-25 on Wednesday, detailing a total outlay of Rs. 18.9 trillion.
Here are some of the key tax proposals outlined in the budget:
Income Tax:
- Income tax exemption for salaried taxpayers to remain at Rs. 600,000 per annum.
- Revision of income tax slabs.
- Exporters to be taxed at the normal rate of 29% instead of the fixed rate of 1%.
- Capital gains tax on real estate and securities set at 15% for filers and 45% for non-filers.
- Withholding income tax rates on transfer of immovable property differentiated for timely filers, delayed filers, and non-filers.
- Increase in advance income tax collection from non-filer distributors, wholesalers, dealers, and retailers from 1% to 2.25%.
- Shift of income tax on registration of motor vehicles from engine capacity to value.
Sales Tax:
- Increase in sales tax on textiles and leather from a reduced rate of 15% to a standard rate of 18%.
- Standard sales tax rate of 18% on mobile phones.
- Introduction of a sales tax withholding regime for bronze, coal, and plastic scrap.
- Removal of sales tax exemption on iron and steel scrap.
- End of exemption for FATA/PATA newly merged districts.
- Change in default surcharge rate from 12% to KIBOR+3%.
- Sales tax to be charged at the time of supply or receipt of payment, whichever is earlier.
- Introduction of Best Judgment Assessment concept in sales tax.
- Mandatory electronic sales invoicing for all businesses.
These proposals highlight the government’s aims to streamline tax policies and enhance revenue collection in the upcoming fiscal year.
