Budget 2018-19: Govt to increase prices of Mobile phones and Imported Cars

The government will announce the Federal budget 2018-19 Pakistan on Tuesday. Newly inducted Finance Minister of Pakistan, Asad Umer will brief the much-awaited federal budget in front of National Assembly. In Budget 2018-19: Taxes on Smartphones is expected to be Increased. This is not a very good news for Telecom companies as well as mobile phone sellers or users.

In the upcoming Federal budget 2018-19 Pakistan, the govt is expected to raise the price of a few imported items that include mobile phones, cigarettes, and imported cars among others in the upcoming finance bill. We have to pay more taxes because the government is not fulfilling its duties. If the bill is passed as it is expected, then you have to pay more taxes.

Federal budget 2018-19 Pakistan

The Federal Board of Revenue has proposed changes to the way Pakistanis are taxed. If the government approves these proposals, people on salaries will see a cut in their upcoming salaries. Right now, you don’t have to pay tax if you earn less than a total of around one million or more than a year. If you fall into this category all you pay is a flat rate of up to Rs2,000. It will be changed under the new system, you will pay tax if you earn more than 4 million per year.

Taxes on income

There will be no income tax if your annual income is Rs400,000 or less.

There will be a fixed tax of Rs1,000 if your annual income is Rs800,000 or less.

There will be a fixed tax of Rs3,000 if your annual income is Rs1.2 million or less.

If your annual income is more than Rs1.2 million, but less than Rs2.4 million, you will pay 5% of the amount that exceeds Rs1.2 million.

If your annual income is more than Rs2.4 million, but less than Rs3 million you will pay Rs60,000 plus 15% of the amount above Rs2.4 million.

If your annual income is more than Rs3 million, but less than Rs4 million, you will pay Rs150,000 plus 20% of the amount above Rs3 million.

If your annual income is more than Rs4 million, but less than Rs5 million, you will pay Rs350,000 plus 25% of the amount above Rs4 million.

If your annual income is more than Rs5 million, you will pay Rs600,000 plus 29% of the amount above Rs5 million

So if the changes are made in Federal budget 2018-19 Pakistan, if you earn Rs100,000 a month, your boss will cut Rs3,333 from your salary as opposed to the Rs166 cut under the rules now.

Also Read: Budget 2018-19: Taxes on Smartphones Increased

Shaheer Riaz

A motivated and accomplished Tech Blogger & Graphic Designer, love to write tech blogs and create new designs plus all-time foodie. Studies Bachelors in Computer Sciences.
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