In Budget 2018-19 the government will cut down the income tax and duty rates to provide respite in the lives of the common people of Pakistan. The government will announce a completely tax-free budget this time and reduce the already present hefty taxes, making life miserable for the people.
The adviser to the prime minister on finance informed that government is trying to create a balance between expansionary and combined fiscal policy. The aim is to bring down the budget deficit to almost 4.5% of total output in 2018-19. There are still internal reviews and changes going on to this set target.
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It is being claimed by the adviser that the withholding taxes will reduce in the upcoming budget especially those that have not positively affected the revenue development but just raised problems for the people. For the salaried class, the tax rates will also be reduced.
For the first time, the budget 2018-19 has been discussed by a government representative. It is expected that will be announced by April 27th. The government will announce fiscal budget at least six weeks early so that the caretaker government won’t have to make the decisions for the 2018-19 budget. As per the adviser, the export incentive schemes will be announced again as seen in the last budget.
He also added that there will be preferential treatment given to anyone in the upcoming 2018-19 budget.
The adviser also said, “It is the right of the next government to announce new development projects and the PML-N government will not take away this right.”
On tax policy, he clearly stated, “No new taxes will be imposed in the budget, instead, the government will reduce the number of withholding taxes that are contributing very little to the kitty, but are creating huge problems for the people.”