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ISLAMABAD: The federal government will be presenting a “mini budget” today (Tuesday) during a National Assembly session after approval from the federal cabinet.
It is likely that new taxes, including super tax, worth Rs158 billion will be levied.
The development budget will be reduced by Rs450 billion and recommendations pertaining to this are in their final phase, sources added.
According to sources, “The amendments in Finance Act 2018 should bring down the budget deficit from 6.6 per cent to 5 per cent.”
For the budget deficit to be slashed, it is necessary that expenditure is brought down from Rs608 billion which is why new taxes are being levied and development budget is reduced, sources stressed.
The budget also includes recommendations to lower the income tax exemption slab. The exemption limit will be lowered to Rs0.8 million per year from the existing Rs1.2million per year, sources said.
Further, the tax exemption slab for other incomes will also be changed accordingly.