Federal officials are considering including an ordinance to impose a flood levy (temporary rebuilding fees in flood-affected regions) in the forthcoming mini-budget.
In order to satisfy many stringent requirements imposed by the International Monitory Fund (IMF) before releasing the next tranche of its extended fund capacity, the government has proposed a mini-budget targeted at significantly raising revenues.
The rainbow coalition is aware that the choice might have political repercussions, such as higher taxes and energy costs.
As a temporary solution halfway through the term, the government may levy taxes to raise around Rs175 billion.
Presumably, Prime Minister Shehbaz Sharif will make a decision on the final form of the mini-budget today.
The government may apply a charge of up to 3 percent on all imported raw materials and provided commodities to help pay for flood damage.
On February 1st, the government will begin collecting the mini budget tax.
It is also anticipated that the government would apply the flood levy on domestically produced goods.
It’s also possible that the fee will apply to banks’ gains from dealing with foreign money and duty-free imports.
It has also been proposed to raise property withholding taxes and goods and services tax rates.
In light of the political unpredictability in the nation and the IMF’s request that Pakistan meet its promises to assure the income gap of almost Rs220 billion, discussions of a mini-budget have emerged.
It is worth noting that the income gap for the first half of the current fiscal year (July-December) amounted to over Rs220 billion.
Premier Shehbaz Sharif will make the final decision after being briefed on the mini-budget by Finance Minister Ishaq Dar.