By Our Web Reporter
LAHORE– The Punjab government is likely to present over Rs2.4 trillion budget for the fiscal year 2020-21 on June 15 with an approximate annual development outlay of Rs435 billion, Lahore Mirror has learnt on Friday.
It is likely that the Punjab Sales Tax on Services rate will be reduced to 5 per cent for the majority of services, while an increase in salaries and pensions in line with the federal government’s decision is expected to provide a 10% ad hoc relief to the serving and retired officials.
However, final budget figures have not yet prepared in accordance with the share of the federal divisible pool from the federal government under the National Finance Commission (NFC) transfers.
The provincial government has made estimates keeping in view the federal government revenue collection target of over Rs5 trillion.
As the economic activities are not resuming in short to midterm due to the coronavirus pandemic the government is considering reducing the Punjab Sales Tax on ServiceS to the majority of the services until December 2020.
The provincial government also plans to extend the tax exemption given to a number of sectors in the backdrop of Covid-19.
Economic impact on the COVID-19 is going to expose in the forthcoming fiscal year so the government is fixing downwards revenue targets for the fiscal year 2020-21.
The overall provincial tax revenue target is being fixed at Rs230 billion, down by Rs65 billion compared to last year’s target of Rs295 billion.
The provincial government is expected to set revenue target for the Punjab Revenue Authority at around Rs125.4 billion, the Board of Revenue Rs65 billion, and the Excise and Taxation Rs32 billion.
