On Wednesday, Finance Minister Muhammad Aurangzeb presented the Federal Budget for 2024-25, which has a total outlay of Rs18.9 trillion. A significant aspect of the budget is the imposition of various taxes on non-filers, aiming to encourage people to become taxpayers.
Proposed Tax on Mobile Balance Recharge
One notable proposal is the imposition of a 75 percent tax on mobile balance recharges for non-filers. If the proposal is approved, this would mean that for every Rs100 prepaid recharge, non-filers would only receive Rs25 worth of credit, with Rs75 being deducted as tax. This measure is intended to incentivize individuals to file their taxes.
Legislative Process and Implementation
The budget has been tabled in both the National Assembly and the Senate, seeking approval. Should the finance bill be passed, the new taxes will take effect from July 1, 2024.
Income Tax Reforms
In his budget speech, Finance Minister Aurangzeb emphasized the necessity of income tax reforms. He highlighted the Federal Board of Revenue’s (FBR) recent efforts to implement these reforms. Additionally, he proposed maintaining the income tax exemption for individuals earning up to Rs600,000 annually, ensuring that lower-income earners remain unaffected by the new tax measures.
The proposed budget reflects the government’s efforts to increase tax compliance and broaden the tax base, with a particular focus on ensuring that more individuals contribute to the country’s revenue through the formal tax system.
