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June 14, 2019

Rs2.2tr Punjab budget today

Top Story

June 14, 2019

LAHORE: The Punjab government will present its around Rs2.2 trillion budget for the fiscal year 2019-20 on Friday, with an estimated annual development plans (ADP) of Rs350 billion. The budget is expected to bring new services into the tax net by fixing Rs167 billion revenue collection from Punjab Sales Tax on Services, revising the tax slabs on motor vehicles, and tax rate on immoveable properties. The government will receive the highest-ever share from federal divisible pool, as the centre has fixed Rs5.5 trillion revenue collection target, hence an increase in the share of provinces. However, these budgetary estimates could be adversely affected with low tax collection by the Federal Board of Revenue (FBR) and provincial revenue collection departments, as witnessed in the ongoing fiscal year 2018-19.

According to the documents available with The News, the government has planned including the new services including apartments services, educational franchises, doctors and medical consultants charging Rs1500 and above per patient consultancy fee, tailoring and fashion designers services, rental machineries used in construction industry, along with withdrawal of the reduced Punjab sales tax rate on different services to bring them on a par.

Additionally, the government has also planned to rationalised the number of excise taxes, including some upwards increasing motor registration charges. Proposal of increasing lifetime token tax on motorcycles/ scooters from Rs1,200 to Rs1500, levy of registration fee of motorcycles in fixed mode up to 70cc Rs750, up to 200cc Rs1500 and exceeding 200cc at the rate of 2% of the value. Further, it proposed increasing the lifetime token tax on motor cars up to 1000CC from Rs10,000 to Rs 15,000, and rationalisation of tax on imported vehicles exceeding 1300cc.

Similarly, remission on property tax over and above liability, 80 per cent remission on rented property, enhancement of stamp duty rates in case of adhesive stamps (judicial, revenue, insurance etc) as the rates of stamp duty paid in the shape of adhesive stamps under the Court Fee Act, 1870 and Stamp Act, 1899 have not been revised since 1973 and 1995/1996, respectively.

According to the documents, the proposed ADP is proposed Rs350 billion, with break-up of Rs144.6 billion for social sector, Rs90 billion for infrastructure, Rs35.7 billion for production sector, Rs11.5 billion for services sector, Rs20 billion for special initiatives, Rs15 billion for other projects.

According to the proposed development outlay, the government is allocating Rs52.5 billion for education sector, out of which Rs39 billion for school education, Rs9 billion for higher education, Rs2 billion for special education, Rs2.5 billion for literacy and non-formal education and Rs3.6 billion for sports and youth affairs.

The proposed development budget for health sector is Rs50 billion, out of which Rs22 billion for specialised healthcare and medical education, Rs23 billion for primary and secondary healthcare, Rs5 billion for population welfare. 40 per cent of health sector development budget would be allocated for south Punjab, and 21 per cent for north Punjab, besides allocating required resources for central Punjab and other parts of the province.

The government will ensure distribution of health cards across 36 districts of the province on the instructions of the prime minister.

The government has proposed Rs30 billion allocation for water supply and sanitation development projects, Rs1.5 billion for social welfare, one billion for women development, Rs60 billion for local government and community development. For infrastructure development, Rs90 billion allocation is proposed, out of which Rs35 billion for roads, Rs26 billion for irrigation, Rs7.5 billion from energy, Rs8 billion from public buildings, Rs7 billion urban development. The total proposed development plan for production sector is Rs35.7 billion, out of which Rs12.7 billion for agriculture sector, Rs3 billion for forestry, Rs500 million each for fisheries, wildlife, and food, Rs5 billion for livestock and dairy development, Rs11 billion for industries commerce, investments and skill development, Rs500 million for mines and minerals, Rs2 billion for tourism development.

The total proposed development plan for services sector is Rs11.5 billion, out of which Rs6 billion for governance and information technology, Rs500 million for labour and human resource development, Rs3 billion for transport sector and Rs2 billion for emergency services (1122).

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