President Asif Zardari accords an approval to tax-laden finance bill

President Asif Ali Zardari has given his assent to the government’s tax-heavy Finance Bill 2024 for the new fiscal year on Sunday.

Earlier, the National Assembly had passed the budget with some amendments a couple of days ago.

The federal government had unveiled the annual budget two weeks ago that drew a sharp criticism from opposition parties as well as coalition ally PPP.

Finance Minister Muhammad Aurangzeb had tabled the finance bill in the parliament that had been opened to seek amendments and debate by the ruling alliance and its opposition.

President Zardari today accorded an approval to the finance bill in accordance with Article 75 of the Constitution.

According to the media wing of the President House,  the bill would be applicable from July 1 (tomorrow).

It may be mentioned here that Under Article 75 (1), the president has no authority to reject or object to the finance bill.

IMF deal

The passage of the finance bill is a crucial step in Pakistan’s efforts to secure a new IMF bailout package as the country is seeking a loan of 8 billion to address its economic challenges.

The IMF has been pushing Pakistan to implement structural reforms and increase its tax revenue to address its fiscal deficit.

The finance bill proposes a range of tax measures, including a 48% increase in direct taxes and a 35% hike in indirect taxes over revised estimates of the current year.

The tax on textile and leather products, as well as mobile phones, will increase to 18%, while the tax on capital gains from real estate will also be hiked.

It is pertinent to mention here that the federal government presented the tax-loaded Rs18.877 trillion budget 2024-25 two weeks ago.