By: J3f13Mcom0012

Saman Khurshid

International Business
Budget 2015-16

SUBSIDIES
Total subsidies for Financial Year 2015-16 has been
Subsidy to WAPDA/PEPCO:

Total subsidies for WAPDA/PEPCO

80000
60000
40000
20000
0

In Million Rs.

Subsidy to KESC:
Total subsidies for KESC

Amount
25000
20000
15000
10000
5000
0
PPick up KESC's Tariff Differential

Amount

Subsidy to USC:
Total subsidies for USC

Amounts In Million Rs.

Ramzan Package
Sale of Sugar
Support for Sugar
Export

Subsidy to PASSCO:
Total subsidies for PASSCO

In Million Rs.

Cost differential
for sale of wheat
Wheat Reserved
Stock
Support for Wheat
Freight Subsidy on
Sugar export

Subsidy to OTHERS:
Total subsidies for OTHERS

In million Rs.
Oil Refineries &
OMCs
Sale of Wheat in
FATA
Sale of Wheat in
Gilgit Baltistan
Sale of Salt in Gilgit
Baltistan

Agriculture

Agriculture remains a major focus of our government despit

e the devolution of much of the operational responsibilities t
o the provinces
Credit Guarantee Scheme for Small and Marginalized Farmers
Crop Loan Insurance Scheme (CLIS)
Livestock Insurance Scheme
Agriculture Credit
Interest Free Loans for Solar Tube Wells
Increase in the Value of Production Index Units (PIU)

Import Promotions

Import and Local Supply of Agricultural Machinery and Equipment

Import of Agricultural Machinery
i. Customs duty from existing rate of 5-20% to 2%;
ii. Sales Tax from 17% to non-adjustable Sales Tax at 7%; and,
iii. WHT from 6% to 0%

Exports Promotion
weak performance of the exports during the year

decline in global commodity prices

The following measures are being adopted for

promotion of exports :
EXIM Bank of Pakistan (Specialized DFI)
Exports Refinance Facility (ERF)
Long Term Finance Facility
Removing Anti-exports bias in Imports
Export Development Initiatives
Establishment of Pakistan Land Port Authority

Tax Proposals
The country needs adequate fiscal space for spending
more on development and welfare of its people.
Least burden

Income Tax
Rate of Capital Gains Tax for Tax Year 2015 was increased to 12.5%
Increasing Cost of Non-Compliance with Tax Laws:
Tax rate of 35% is applicable to banking companies
Taxation of Dividend 10%
Domestic Electricity Consumption 7.5%
Domestic Electricity Consumption
Taxation for Not Distributing Dividend

Revenue Measures
summary of the Revenue measures proposed in the budget
Change in Rate of Tax and Taxable Holding Period for Securities
Increasing Cost of Non-Compliance with Tax Laws
Adjustable advance income tax on banking instruments and other
modes of transfer for Non-Filers
Rationalizing Tax Rates for Various Sources of Banking Companies
Taxation of Dividend
Taxation of Capital Gains from Trading of Futures Contracts

Contd

Domestic Electricity Consumption

Renting Out Machinery and Certain Equipments
Dividend from Real Estate Investment Trusts
Taxation for Not Distributing Dividend
Revenue for Rehabilitation of Temporarily Displaced Persons

Contd
Relief Measures
Reduction in Tax Rate for Companies
Exemption to Electricity Transmission Projects
Tax Credit for new investment in shares
Tax Credit for Enlistment
Expanding the Scope of Small Company

Contd..

Option to Exporters to Opt Out of the Final Tax Regime:

Relief to Small Taxpayers:
Expanding the Scope of Small Company