ISLAMABAD: Finance Minister Asad Umar presented proposed amendments to the federal budget in the National Assembly on Tuesday.
The “mini budget” approved earlier today by the federal cabinet is expected to introduce new taxes, including super tax, worth Rs158 billion.
The development budget will be reduced by Rs450 billion and recommendations in this regard are in their final phase, sources said.
Sources further said, “The amendments in Finance Act 2018 should bring down the budget deficit from 6.6 per cent to 5 per cent.”
For the budget deficit to be decreased, it is necessary that expenditure is brought down from Rs608 billion which is why new taxes are being levied and development budget is reduced, sources added.
The budget also includes recommendations to lower the income tax exemption slab. The exemption limit will be lowered to Rs0.8 million per year from the existing Rs1.2million per year, sources said.
Further, the tax exemption slab for other incomes will also be changed accordingly.