The document summarizes subsidies and other budget allocations for fiscal year 2015-16 in Pakistan. It notes that total subsidies were estimated at Rs. 137,603 million, with the largest subsidy (Rs. 98,000 million) going to WAPDA/PEPCO. Subsidies were also provided to KESC (Rs. 20,000 million), USC (Rs. 7,000 million), PASSCO (Rs. 11,300 million), and others (Rs. 1,303 million). The budget also allocated funds to agriculture initiatives, tax proposals, import and export promotions, and relief measures.

1. By: J3f13Mcom0012
Saman Khurshid

2. Budget 2015-16
Agriculture
Taxes
Subsidies
import
and Export
International Business

3. SUBSIDIES
Total subsidies for Financial Year 2015-16 has
been
estimated at Rs 137,603 million
Subsidy to WAPDA/PEPCO:
Subsidy to KESC
Subsidy to USC
Subsidy to PASSCO
Subsidy to Others

4. 0
20000
40000
60000
80000
In Million Rs.
Total subsidies for WAPDA/PEPCO has been estimated 98,000

5. Subsidy to KESC:
Total subsidies for KESC has been estimated 20000
0
10000
20000
30000
PPick up KESC's Tariff Differential
Amount
Amount

6. Subsidy to USC:
Total subsidies for USC has been estimated 7000
Amounts In Million Rs.
Ramzan Package
Sale of Sugar
Support for Sugar
Export

7. Subsidy to PASSCO:
Total subsidies for PASSCO has been estimated 11300
In Million Rs. Cost differential
for sale of wheat
Wheat Reserved
Stock
Support for Wheat
Freight Subsidy on
Sugar export

8. Subsidy to OTHERS:
Total subsidies for OTHERS has been estimated 1303
In million Rs.
Oil Refineries &
OMCs
Sale of Wheat in
FATA
Sale of Wheat in
Gilgit Baltistan
Sale of Salt in Gilgit
Baltistan

9. Agriculture
Agriculture remains a major focus of our government despite
the devolution of much of the operational responsibilities to t
he provinces
Credit Guarantee Scheme for Small and Marginalized Farmers
Crop Loan Insurance Scheme (CLIS)
Livestock Insurance Scheme
Agriculture Credit
Interest Free Loans for Solar Tube Wells
Increase in the Value of Production Index Units (PIU)

10. Import Promotions
Import and Local Supply of Agricultural Machinery and Equipment
Import of Agricultural Machinery
i. Customs duty from existing rate of 5-20% to 2%;
ii. Sales Tax from 17% to non-adjustable Sales Tax at 7%; and,
iii. WHT from 6% to 0%

11. Exports Promotion
weak performance of the exports during the year
decline in global commodity prices

12. The following measures are being adopted for
promotion of exports :
EXIM Bank of Pakistan (Specialized DFI)
Exports Refinance Facility (ERF)
Long Term Finance Facility
Removing Anti-exports bias in Imports
Export Development Initiatives
Establishment of Pakistan Land Port Authority

13. Tax Proposals
The country needs adequate fiscal space for spending
more on development and welfare of its people.
Least
burden
Second
phase of
withdrawal
of
exemptions
Expand the
scheme
Customs
tariff.
Reviewing
tax laws
Removal of
sectoral
distortions
Measures
for
broadening
of the tax
Increasing
the share
of the
direct
taxes.

14. Income Tax
Rate of Capital Gains Tax for Tax Year 2015 was increased to 12.5%
Increasing Cost of Non-Compliance with Tax Laws:
Tax rate of 35% is applicable to banking companies
Taxation of Dividend 10%
Domestic Electricity Consumption 7.5%
Domestic Electricity Consumption
Taxation for Not Distributing Dividend

15. Revenue Measures
summary of the Revenue measures proposed in the budget
Change in Rate of Tax and Taxable Holding Period for Securities
Increasing Cost of Non-Compliance with Tax Laws
Adjustable advance income tax on banking instruments and oth
er modes of transfer for Non-Filers
Rationalizing Tax Rates for Various Sources of Banking Companie
s
Taxation of Dividend
Taxation of Capital Gains from Trading of Futures Contracts

16. Contd…
Domestic Electricity Consumption
Renting Out Machinery and Certain Equipments
Dividend from Real Estate Investment Trusts
Taxation for Not Distributing Dividend
Revenue for Rehabilitation of Temporarily Displaced Persons

17. Contd…
Relief Measures
Reduction in Tax Rate for Companies
Exemption to Electricity Transmission Projects
Tax Credit for new investment in shares
Tax Credit for Enlistment
Expanding the Scope of Small Company

18. Contd..
Option to Exporters to Opt Out of the Final Tax Regime:
Relief to Small Taxpayers:
Expanding the Scope of Small Company

19. Thank
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U
Thank
U
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U
Thank
U