Jul 03 - 09, 2000
Punjab unveils Rs212 billion budget
Finance Minister Shahid Hafeez Kardar on Wednesday announced the Punjab
budget for 2000-2001 with a total outlay of Rs212.37 billion, reducing the number of taxes
from the present 36 to nine.
The budget projects an unusual increase of 17.8 per cent in the
non-development expenditure over what this sector consumed in the outgoing year.
The minister announced withdrawal of various provincial taxes on
hotels, restaurants, marriage halls, mobile phones and courier service; on advertisement
on radio, TV, newspapers and journals after introducing a 15pc GST on them.
According to the Punjab Sales Tax Ordinance 2000, promulgated by
Governor Mohammad Safdar earlier in the day, the GST would be charged on the above
mentioned services from July 1.
The ordinance empowered the government to bring about certain changes
in the agriculture income tax. According to the new strategy, no direct tax would be
levied on the pieces of land measuring up to five acres. The land exceeding five acres
would be taxed at the rate of Rs50 per acre; from 12.5 acres to 25 acres Rs100 per acre;
from 25 acres to 50 acres Rs300 per acre, and for 50 acres and up the rate would be Rs350
The tax for orchards (irrigated) will be Rs500 per acre and for barani
Rs250 per acre. The rate of tax on total agricultural income where the income does not
exceed Rs100,000 will be 5 per cent of the total income; from Rs100,000 to Rs200,000
income Rs5,000 plus 7.5pc of the amount exceeding Rs100,000.
For the income exceeding Rs200,000 up to Rs300,000, the levy would be
Rs12,500 plus 10pc of the amount exceeding Rs200,000. On the income exceeding Rs300,000
the tax amount would be Rs22,500 plus 15pc of the amount exceeding Rs300,000.
All this taxation is likely to cause an additional resource
mobilization of Rs15 billion, but the province seems to have compromised on Rs6.86 billion
which it could have got in straight transfers from Islamabad under the National Finance
Rs41.73 billion budget for NWFP
Finance Minister Farid Rehman on Monday announced a Rs41.73 billion
surplus, tax-free budget for the fiscal 2000-2001. The budget projects a surplus Rs2.6
billion which will be neutralized by less receipts to the extent of Rs6.89 billion on
account of net hydel profits capped already by Wapda at Rs6 billion.
The hydel profit receipts have been projected at Rs12.89 billion in
accordance with the AGN Kazi Formula. The formula has been awaiting implementation for
With the projected increase in the federal tax assignments from the
current year's revised estimates of Rs15.74 billion to Rs20.36 billion, revenue on this
specific account would go up by Rs4.61 billion.
The province would, for the first time, receive Rs866.66 million from
the federal government on account of its octroi and Zila tax share.
NWFP's own receipts have been estimated at Rs4.25 billion as against
the revised estimates of Rs3.92 billion for the current fiscal. Income under various heads
has been projected at Rs1.74 billion, Rs2.4 billion and Rs101.56 million on account of tax
receipts, non-tax receipts, and interest/dividend respectively. After deducting Rs955
million, which is believed to remain non-receivable, the net receipts will remain at
Rs3.29 billion compared to Rs3.1 billion in the current fiscal.
Four sick units
The Committee for revival of sick units has approved the revival of
four sick sugar mills after having a presentation on sugar industry by the financing
Chairman of the Committee Tariq Hameed said after the meeting that
eight sick sugar units were considered by the committee which approved the revival of four
units and rejected remaining four.
Tariq Hameed said three of these units are located in Azad Jammu and
Kashmir, NWFP and Kasur.
There are at least 78 sugar mills in the country and the committee did
not want to take up revival cases of small units with 1,500 to 2,000 tons sugarcane
crushing capacity per day.
Sugar mills with a crushing capacity of 4,000 tons to 6,000 tons were
considered for revival purposes, he added.
Revival of sick units
The government is likely to issue an ordinance in early July to
formally establish Corporate and Industrial Restructuring Corporation (CIRC) to revive on
priority 144 sick industrial units.
Official sources said on Monday that draft law for the setting up of
the proposed CIRC (previously known as Corporate Resolution Trust) has been prepared by
the ministry of law for final approval by the cabinet.
The chairman of the Corporation, Tariq Hamid was looking for the
approval of the ordinance to be issued to undertake the revival of 1000 units out of total
of about little over 4000 units.
Steel Mill output
Pakistan Steel Mills Friday crossed the one million ton mark of steel
production in the year 1999-2000.
Rice production strategy unveiled
The Punjab Agriculture Department has chalked out master plan to bring
3.689 million acres land under rice crop during 2000-2001, to achieve the production
target of 2.377 million tons, at an average yield of 17.26 maund per acre.
Production of car, truck falls
The auto sector is expected to give a mixed performance in 1999-2000,
showing fall in production of cars, light commercial vehicles (LCVs) and trucks as against
rise in tractor and bus segments as compared to 1998-99.
Figures released by Pakistan Automotive Manufacturers Association
(PAMA) reveal rolling out of 27,631 cars during July-May 1999-2000 as compared to the
entire production of 38,619 units in 1998-99. Car production failed to pick up despite the
fact that the production of Daihatsu Cuore 800cc, which was launched in March this year,
reached to 883 units. Assemblers of Suzuki, Toyota, Nissan and Honda produced 33,684 units