Pakistan's government has introduced significant amendments to its Finance Bill 2024, aimed at meeting criteria set by the International Monetary Fund (IMF). These changes, presented to the National Assembly on June 12, include adjustments to the Petroleum Development Levy (PDL) on diesel and petrol. The PDL on these fuels has been reduced to PKR 70 per litre from PKR 80 but increased from the previous PKR 60. Additionally, Federal Excise Duty (FED) rates for economy and economy-plus foreign travel tickets have been raised by 150%, from PKR 5,000 to PKR 12,500, effective July 1.

Finance Minister, in his announcement, detailed new tax measures designed to boost revenue in the coming fiscal year. These measures include the introduction of a capital value tax on property in Islamabad and enhanced taxation on builders and developers, as reported by local media.

Despite opposition, exporters will now be subject to a standard corporate tax rate of 29%, with applicable super taxes, replacing the previous 1% tax on export turnover. Individuals and associations earning over PKR 10 million annually will face a 10% surcharge on their income tax. Moreover, exemptions on the sales or transfer of immovable property have been expanded to include certain categories like war-wounded personnel and ex-servicemen of the Pakistan Armed Forces and federal or provincial governments.

The passage of this tax-heavy finance bill comes amidst Pakistan's deep economic crisis and ongoing negotiations with the IMF for a new bailout package.

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