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National Assembly passes Finance Bill 2021-22

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ISLAMABAD, Pakistan: The National Assembly on Tuesday passed the Finance Bill 2021-22, giving legal effect to the budgetary proposals for the next Fiscal Year.

It was presented by the Federal Minister for Finance Shaukat Tarin.

The amendments proposed by the Opposition in the Finance Bill 2021-22 were rejected by the House.

Having a total outlay of Rs 8,487 billion, the Federal Budget 2021-22 envisages incentives and measures for various sectors to promote business activities and provide relief to the general public.

In the budget, the federal employees have been granted 10 percent ad hoc relief besides a 10 percent increase in pensions while the minimum wage has been enhanced to Rs 20,000 per month.

The annual Public Sector Development Programme (PSDP) has been increased by 40 percent from Rs 630 billion to Rs 900 billion.

In the budget, Rs 100 billion have been earmarked for the construction of hydropower dams including Dasu, Diamer Basha, Mohmand, and Neelum Jhelum.

The growth target of 4.8 percent has been set for the next fiscal year with a tax collection target of Rs 5,829 billion.

The allocation for the Ehsaas program has been enhanced from Rs 210 billion to Rs 260 billion for the next Fiscal Year 2021-22.

Likewise, an amount of Rs 682 billion have been earmarked for subsidies which were Rs 430 billion during the outgoing Fiscal Year 2020-21.

The Federal Budget 2021-22 provides zero-rating to export of IT services.

The tax relief has been given for locally manufactured cars up to 1000CC whilst various tax exemptions and concessions have also been given to encourage the manufacturing of electric vehicles in the Country.

For the next financial year, Rs 66 billion have been allocated for the Higher Education Commission (HEC) and Rs 10 billion for the Kamyab Jawan Program.

The budget also envisages the allocation of US$ 1.1 billion for the procurement of the anti-COVID-19 vaccine.

The House will now meet tomorrow (Wednesday) at 11:30 am.

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