Federal Minister for Finance Ishaq Dar is heading the discussions for drafting proposals for the upcoming budget 2016-17, which is scheduled to be presented in the second week of June.
The government is going to impose new taxes worth Rs 150 billion in the upcoming fiscal budget.
The mini-budget presented on December 1, 2015 will also be merged into the federal budget for the next fiscal year.
Taxes worth Rs 40 billion that were part of the last year’s mini-budget have also been added in the upcoming budget along with additional taxes which are around Rs 26 billion, resulting in the increase in the prices of basic items, including soap, toothpaste, make-up products, cellular phones and eatables.
Sources said that the parliamentary expenses are expected to be increased by Rs 800 million while a 10 per cent to 15 per cent raise in salaries of government employees is also expected.
Furthermore, customs duty will be increased on imported milk, butter, dry milk, imported chicken, fish, tin fruits, olive oil etc. The prices of warm jackets, coats, shoes and bags will also escalate as a result of the increase in the taxes. Additional excise duty will have to be paid on cigarettes as well.
According to a report, the proposals for the budget will be communicated to Prime Minister Nawaz Sharif today (Monday) who is in London for an open heart surgery. The prime minister will give his approval over Skype.