Pakistan's Budget 2020-21 Highlights

Minister for Industries Hammad Azhar presents Budget 2020-21. Here are some of the key pointers & highlights from this year’s budget. Keeping in mind, Corona situation, maximum relief for common man has been ensured in this budget. It can be rightly called a “Relief budget”, said Hammad Azhar while presenting the budget.

Hammad Azhar’s Live Budget 2020-21 Speech

https://www.facebook.com/PTIOfficial/videos/713700236073144/

Video Credits: PTV News, PTI

Pakistan’s Budget 2020-21 Highlights

Rs. 100 bn allocated for Corona fund, Rs. 50 bn allocated for Utilities Stores & Rs. 100 bn allocated for relief in Electricity & gas bills.
There will be no tax on coronavirus & cancer diagnosis kits & the import taxes on kids food supplement and diet food have been abolished too.
Now, people will have to show their CNICs while making a purchase of over Rs100,000. Earlier, this was applicable on Rs50,000 purchase.
PM Khan envisions an end to “dependancy syndrome” in a bid to encourage innovation & exports. Hence all Customs Duties on 1,623 tariff Lines elimitaed. Over 20,000 raw materials (20%of total raw materials imported) will reduce costs, encourage local industries.
Rs. 200 bn have been allocated for daily wagers. Rs. 50 bn allocated for SMBs for relief in their bills.
The government has allocated Rs208 billion for the Ehsaas Programme for the alleviation of poverty and helping the poor.
This year, Pakistan has allocated Rs70bn for water projects.
Tax relief worth Rs. 15 bn given on health supplies especially amidst corona situation.
Additional Rs. 10 bn allocated for agricultural sector & catering to locust issue. This is in addition to previously allocated Rs. 50 bn for this sector in PM’s stimulus package.
Artists are our asset. On President Arif Alvi‘s recommendations, artist welfare fund has been increased from Rs. 25 crore to Rs. 1 bn.
Special grant of Rs. 10 bn for Balochistan & Rs. 50 bn for Azad Kashmir have been allocated.
Higher education is a focus of our govt. HEC’s funds worth Rs. 60 bn have now been increased to Rs. 64 bn.
Federally administered hospitals in Lhr & Karachi including Sheikh Zayed hospital in Lhr & Jinnah Hospital (JPMC) in Karachi to get Rs. 13 bn additional funds.
Rs. 20 bn allocated for Science & technology. Rs. 5 bn allocated for educational reforms.
Govt of Pakistan allocates Rs. 6 bn to combat climate change.
Hotel & hospitality industry has taken a huge hit due to COVID lockdowns. Reduction of 0.5% tax on hotel industry has been proposed.
Rs. 20 bn allocated for Science & technology. Rs. 5 bn allocated for educational reforms.
FED on caffeine-related products is being increasd from 13% to 25% to discourag its use. Excise duty has also been imposed on doubl cabin pick-up.
FED on cement has been reduced by 25paisas to Rs1.75.
The federal excise duty will be increased on e-cigarettes. The FED on imported cigarettes, ‘bidi’, and cigars has been increased to 100%, it was 65% before. The tax on cigarette’s filter rod has been increased from Rs0.75 to Rs1.

Conclusion

NO NEW TAX, generous funds for healthcare sector, innovation in education sector through tech, special grants to Balochistan, AJK & Gilgit-Baltistan, funds for daily wagers, agricultural sector, combatting climate change & locust attack, that’s PM Khan’s #Budget2020 for you.