Salaries, pensions raised by 10pc

 

QUETTA: A tax-free budget for the next financial year 2014-15, with a record outlay of Rs215.71 billion, was presented in the Balochistan assembly on Thursday.
The provincial budget showed a total deficit of over Rs15.66 billion.Adviser to Chief Minister for Finance Mir Khalid Lango presented the budget, which is the second of the present coalition government led by Dr Abdul Malik Baloch. Speaker Mir Jan Muhammad Jamali chaired the budget session.A ten percent increase in the salaries of government employees as well as in the head of pensions of retired employees has been made in the budget.

Delivering the budget speech, Mir Khalid Lango said that the new budget includes Rs50.741 billion of the Annual Development Programme (ADP) and Rs164.971 billion for non-development expenditure.

The federal direct receipts to the province in the budget are estimated at over Rs141 billion with Rs39 million to be received through other heads.Balochistan will collect income of Rs8.97 billion from its own resources, he added. The budget deficit, Lango said, would be met through strict savings and austerity measures to be adopted by the government to cut down its expenditure.

Mir Khalid Lango said that over Rs17 billion have been allocated in the budget for the maintenance of law and order. Similarly, he said, over Rs28 billion have been allocated for the education sector and over 14 billion have been earmarked for the health sector.

In the new fiscal budget, 3,925 new vacancies would be created in order to resolve the issue of unemployment, he announced.Lango also mentioned certain measures proposed for the uplift of different sectors in the province, including livestock, agriculture, industries, irrigation, the roads sector and sports.

He said that establishment of the Balochistan Revenue Authority has been proposed while the Balochistan Mineral Board would also be established during the next financial year.He said the provincial government would do everything possible to provide necessary relief to the masses.

He said an educated, self-sufficient and prosperous Balochistan is the provincial government’s dream.Earlier, the provincial cabinet headed by Chief Minister Dr Abdul Malik Baloch approved the budget for the fiscal year 2014-15.

APP adds: Mir Khalid Lango said Rs1 billion funds have been earmarked in the new fiscal budget for the execution of solar home systems to provide electricity to 300 villages, adding that such projects after implementation would help in meeting the energy requirements.

He said the Balochistan budget for 2014-15 includes Rs2.723 billion in foreign aid.Referring to the water issue, he said that an amount of Rs400 million was allocated for the installation of a solar energy system to supply electricity to water supply schemes.

He said Rs200 million have been allocated for repairing and renovating schools damaged in the earthquake in Awaran district. He said Rs50 million have been allocated for the repair and renovation of the Quaid-i-Azam Residency in Ziarat that was damaged and burnt down in a terrorist attack.

Mir Lango said the Public Accounts Committee of the Balochistan Assembly would be set up with immediate effect and there would be a ban on spending government funds for medical treatment in foreign countries and reception ceremonies in hotels on government expense. He added that a complete ban has been imposed on the purchase of luxury vehicles for government departments.

10pc increase in salaries, pensions

ISLAMABAD: The government announced a 10 percent raise in the salaries and pensions of government employees, dashing hopes of any meaningful relief to the low-grade employees and pensioners. In its first budget last year, the PML-N government did not raise the salaries of government employees but gave a 10 percent raise to pensioners.The raise in salaries and pensions will have an impact of around Rs45 billion on the national exchequer.

The minimum wage of workers has also been increased from Rs10,000 to Rs11,000. The minimum pension has been increased from Rs5,000 to Rs6,000.Medical allowance of employees of Grade 1 to 15 has been increased by Rs100 while 5 percent increase has allowed in the conveyance allowances to those employees working in Grade 1 to 15. The post of superintendent has been upgraded from grade 16 to grade 17.One premature increment will be allowed to employees of Grade 1 to 4.

Govt to impose 10pc tax on expensive air tickets

ISLAMABAD: The government has decided to impose 10 percent withholding tax on first class and business class international travelers in the budget 2014-15, The News has learnt.

In another major revenue spinning measure, the government is all set to enhance tax rates on services of professionals including doctors, lawyers, chartered accountants, architects, dentists, interior decorators and many others from existing 6 to 10 pc.

However, Prime Minister Nawaz Sharif on Thursday directed the FBR authorities not to increase the tax burden on the common citizens and on kitchen items such as vegetables, ghee, cooking oil, medicines.

“Prime Minister Nawaz Sharif has convened another crucial meeting on Friday to take decisions on withdrawal of hundreds of Statutory Regulatory Orders (SROs) as well as transferring SRO issuance powers to Parliament,” official sources in Finance Division confirmed to The News here on Thursday.

According to finalised budgetary measures, the government has decided to tap expenditures side of potential tax evaders in the coming budget as 10% withholding tax in adjustable mode is proposed to be levied on non- filers international travelers and 5 percent on registered travelers who travel in first class and business class of airlines.

“There will be no withholding tax on economy class of international travelers,” said the sources.

According to the working done to justify imposition of 10 percent withholding tax in adjustable mode on wealthy people who can afford to travel in first class or business class, the sale of total airline tickets for purpose of international traveling of wealthy class consumed Rs60 billion per annum. There is fixed Federal Excise Duty (FED) imposed on air traveling for both domestic and international travelers.

Currently, there is 5 percent Withholding Tax (WHT) imposed on domestic travelers and now the government would be moving towards slapping this tax on international travelers. “We expect that the FBR will generate around Rs6 billion through this tax measure in the next fiscal year,” said the official sources.

The government, the sources said, intended to move ahead to increase the tax burden on those who are unwilling to come into tax net.

Another proposal so far finalised by the government for upcoming budget is to increase rate of withholding tax on professionals such as doctors, lawyers, chartered accountants and many others.

The services under section 153(1) (b) of the Income Tax Ordinance 2001 attract tax deduction of 6 percent. The said rate is to be enhanced to 10 percent in the coming budget. Under section 153, the services include the services of accountants, architects, dentists, doctors, engineers, interior decorators and lawyers, otherwise than as an employee.