Now that the sixth and final budget of PML-N’s term has been announced, there is a major update regarding the pay increase in new budget 2018-19.
Salary Increase in Budget 2018-19
The federal government has proposed a 10% increment on salaries and pensions for government employees.
This decision came forward after Federal Finance Minister Miftah Ismail presented the budget with a total outlay of PKR 5.932 trillion on Friday, 27th April.
“Our government has consistently provided increase in pay and pensions of government employees over the last five years. Despite fiscal constraints a further relief is being provided to government servants and pensioners although the inflation this year currently stands at 3.8 per cent,” Miftah said
Previously, the minimum wage was set at Rs 6,000 which has changed to 10,000. On the other hand, for employees above the age of 75, Rs 15,000 has been allocated as the new amount for pensions. Moreover, family pensions have also increased from Rs 4,500 to Rs 7,500.
Miftah added that housing has become a very serious concern for government employees in major cities as rents have increased by 50%! “Similarly, house rent allowance is also being increased by 50 percent,” he added.
Key Features of Budget 2018-19
- Undistributed profit decrease to 5%
- Tax on individual income from 12 lacs and above will be taxed as per slab which has been decreased.
- Tax on bonus shares abolished
- Super Tax to be decreased by 1% yearly
- Remittance up to $100,000 is exempted from any sort of investigations and tax. Any amount above this value could be investigated by tax agencies
- REIT schemes will have flat 5% income tax rate
- Now withholding on services would be above Rs. 30,000/- and on supplies above Rs. 75,000/-
- Non-Filer bank transactions tax rate reduced to 0.4%
- Individuals income exempted up to 12 lacs. A nominal tax of Rs. 100 will be levied on the annual income of 4-8 lakh while Rs. 2,000 will be taxed on the income of above 8 lakh and below 12 lakh
- The government can purchase the immovable property by paying the double the price of value mentioned in the registered deed, within six months of the registration
- GST exemptions same as per last year
- Filer tax rate will be 1% against property sale and purchase
- FBR rate for property valuation stands abolished from 1st July 2018
- Exports refund will be paid within 12 months 1/7/2018
- Dividend tax decrease to 5%
- Data mining introduced for finding new taxpayers
- Corporate tax decreased by 25% up to 2023
- Audit of companies will be allowed once in 3 years
- AOP slab decrease to 30%
- 5 Sectors under SRO 1125 at 0 rated
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