The provincial budget for fiscal year 2011-12 was presented within the Khyber Pakhtunkhwa Assembly on Saturday, Geo News reported.
Provincial Minister for Finance, Engineer Mohammad Hamayun Khan presented the budget in a very specially convened session of the provincial assembly.
The outlay for the budget was Rs. 249.15 billion of that Rs. eighteen billion has been allotted for counter terrorism.
The allocation for the annual development programme is Rs. 85.14 billion consisting of 1035 comes and thirty second of the funds from the programme would be spent on social development. The province is predicted to receive Rs. thirteen billion within the type of royalty on oil and gas.
The province would generate Rs 149 billion from federal taxes whereas an additional Rs seven billion would be generated from provincial taxes.
This year an enormous quantity of Rs.87.706 billion has been mirrored separately. The mentioned quantity is shown for seeking credit from business banks and different money establishments, that is neither a part of the income for expenditures of the province.
The salient options of the budget for finance next money year included a receipt of Rs.149.988 billion from federal in head of federal taxes whereas another quantity of Rs.18.202 billion would be provided in head of operation against miscreants and terrorists.
The provincial government will receive a receipt of Rs.13.806 billion in head of royalty on oil and gas through straight transfers, Rs.6 billion as web profit on hydropower generation, Rs.25 billion outstanding arrears in head of web profit on electricity.
The province can generate an quantity of Rs.7.349 billion from its revenue resources, Rs.10.3 billion on general sales tax on services. The hydropower stations established with the own resources of the province can generate Rs.2.115 billion, Rs,16.112 billion from foreign project help and another quantity of Rs.727.4 million through totally different miscellaneous resources.
The salient options of the expenditure of Rs.249.15 billion are as well as a current expenditure of Rs.149 billion. the small print of the expenditures are as well as Rs.13.12 billion (Health), Rs.18.81 billion (Police), Rs.2.34 billion (Irrigation), Rs.1.23 billion (Technical Education), Rs.2.32 billion (Works & Services), Rs.16 billion (Pension & Insurance), Rs.50.82 billion ( Salaries & different expenses of district governments), Rs.10.60 billion for payment of mark-up on loans and quantity of Rs.2.50 billion for food subsidy.
The provincial minister for finance said that the resources of the province are restricted and increase in them is inevitable. Therefore, he said justified enlargement and tax-net and rates had been proposed.
Efforts are created for increase within the ratio of tax on the big income earning category to produce relief to middle and low income earning teams.
Giving details of revision within the tax ratios, he said that capital and value-added tax on shopping for and selling of the properties has been decreased from four per cent to a pair of per cent to facilitate poor on one hand and promote the documentation of the property business on the opposite hand.
He said that most cut has been proposed in delayed registration fee of the little vehicles notably auto-rickshaw and motor-cycle. Prevailing late registration fee (fine) on motor-cycle that was Rs.2000 and Rs.5000 has been abate to Rs.200 and Rs.500 respectively.
Similarly, most relief is additionally proposed on the tractors and tiny cars. In head of urban immovable property (UIP) tax, the inclusion of least income earning areas of Peshawar has been proposed within the class C and no increase has proposed on them. Similarly, no increase has been proposed on least incoming earning outside areas of townships approved at divisional and district levels.
The high income earning areas of Peshawar would be included within the classes A and B on that affordable increase has been proposed.
Furthermore, increase in UIP tax on properties within divisional and district levels approved townships has additionally been proposed.
For money year 2011-12 affordable increase within the ratio of the precious business properties on either side of G.T. Road and Jamrud Road in Peshawar has been proposed whereas no increase has been proposed for business properties in different areas of the town.
Professional tax on giant income earning non-public medical faculties, engineering faculties and business faculties has been levied whereas the ratio of the skilled tax on massive contractors is additionally being increased. Similarly, most increase has been created within the transfer and registration fees of the motor-vehicles.
Tobacco Development Cess, that wasn’t increased since last one decade, however currently in light-weight of the growing worth of the commodity within the market, increase has been proposed during this tax, which might be spent on the areas from where it collected.
Increase in numerous fees of electrical inspector has additionally been proposed and it’s been taken into thought that this is able to be levied solely contractors and business institutes to produce relief to common shopper. Water rate has additionally been increased to fulfill the growing expenses on the electricity and maintenance and repair.
Fore increase within the revenue of forests raise in numerous taxes has been proposed whereas the department of communication and works (C&W) can levy fee in proportion to the new categorization created by engineering council and increase is additionally proposed in numerous fees and taxes of the department of transport.
The provincial government within the budget for money year 2011-12 has additionally proposed bringing the fee of the civil cases at par with different provinces of the country. However, no increase has been proposed in Agriculture Income Tax and Land Tax because the achievement of the mounted targets couldn’t be achieved owing to faulty recovery system.
The provincial government can introduce totally different quite reforms in creating the recovery system more practical and bringing simplicity in it to realize the expected income and take away deficiencies of the system.