Miftah Ismail presented the federal Budget 2018-19 today. Following are the announcements which are made in Budget Speech 2018-19. Total outlay of the budget is Rs.5661 Billion. Here is brief in Budget 2018-19 in a glance.
1. 10% Increase in the Salary and Pension of Government Employees in the Budget 2018-19
Government has increased 10% percent on both salary and pension of retired employees . Minimum pension set to Rs. 10000 Rupees and the retired Government Employees who are attaining age of 75 years will get Rs. 15000 Minimum Pension as announced in the budget speech 2018. Government has also increased House Rent Allowance HRA @ 50% on the running HRA of Basic Pay Scale 2008. Medical Allowance also increased . Check the HRA chart here. Housing is a serious problem for government employees in major cities. House rent ceiling is being increased by 5 0 percent and similarly House Rent Ceiling also increased @50%. Overtime allowance of staff car drivers a nd dispatch riders is being increased from Rs.40 per hour to Rs.80 per hour.
2.EXEMPTION FROM SALES TAX FOR DAIRY, LIVESTOCK AND AGRICULTURE
Urea is chargeable to sales tax @ 5%, DAP @ Rs.100 per 50 kg bag and other fertilizers like NP, NPK, SSP, CAN are also charged reduced fixed rates of sales tax. To promote agricultural growth reduction in rate of sales tax to 3% across the board on all fer tilizers is proposed. It is further proposed that the rate of sales tax on supply of natural gas to fertilizers plant for use as feed stock, presently chargeable @ 10%, may be reduced to 5% to cater for cash flow issues of fertilizers manufacturers in view of reduction in rate of sales tax on fertilizers. Likewise, rate of sales tax on LNG imported by fertilizer manufacturers for use as feed stock is also proposed to be reduced from 5% to 0%.
3. Sales Tax on Computer Parts
Currently , Personal Computers and laptops are exempt from sales tax. However, exemption is not available in respect of computer parts. In order t o promote local assembling and manufacturing of laptops and computers , it is proposed that exemption on 21 types of computer parts imported by manufacturers may be granted.
4. Federal Excise Duty on Cigarettes
Federal excise duty on locally produced cigarettes is proposed to be enhanced in respect of Tier - 1, TIER - 2 and TIER - 3 to Rs 3964, Rs 1770 and Rs 848 per thousand cigarettes respectively