The Khyber Pakhtunkhwa (KP) government has scheduled the presentation of its fiscal year 2024-25 budget for May 24, marking the first time it will precede the federal government’s budget announcement.
KP Finance Minister Aftab Alam will unveil the budget during a legislative session convened for 3 PM. Alam has called for constructive discussions from the opposition, urging them to focus on positivity rather than criticism, despite acknowledging the strained relations between the KP and federal governments.
Recent developments have revealed that under pressure from the International Monetary Fund (IMF), the Pakistan government will likely eliminate certain tax exemptions in the FY2024-25 budget. Notably, gradual removals are expected in sales and income tax exemptions.
Further, the government is contemplating introducing a sales tax on tractors and pesticides. This proposed change, targeting key agricultural inputs currently exempt under the Sixth Schedule of the Sales Tax Act, could lead to significant price increases for these crucial products.