A Synopsis Of Federal Budget 2015-16

A Synopsis Of Federal Budget 2015-16

The total outlay of the budget 2015-16 is Rs4,451.3 billion.The size of the outlay is 3.5 percent higher than the size the budget estimates of 2014 15. The resource availability during 2015-16 has been estimated at Rs.4 168.3 billion against Rs4 073.8 billion in the budget estimates of 2014-15.

  • Total budget outlay Rs 4.451 trillion
  • Deficit Rs 16.25 trillion
  • New taxes Rs 253 billion
  • Rs 700 billion allocated for PSDP
  • Rs 20.88 billion allocated for health
  • Rs 71.5 billion allocated for education the Higher Education Commission has been given Rs20.5 billion, Rs4.5 billion less than this year’s HEC development budget.
  • Growth rate target 5.5% for 2015-16
  • Rs31 billion allocated for water management
  • Government has allocated 102 billion rupees for Benazir Income Support Programme
  • Defence spending goes up to Rs781 billion after 11% hike
  • 28 billion allocated for WAPDA
  • 100% increase in tax on mobile handsets
  • Tax exemptions for airlines, airports the government announced tax exemptions on import of aircraft, their spare parts, training simulators and equipment used in repair and maintenance of airplanes
  • Rs3 billion allocated for Ramzan package

Relief Packages

 Agriculture Relief Package

  • Tax Holiday for Agricultural Delivery Chain
  • The exemption for 4 year for Halal’ Meat Production Companies
  • Relief to Rice Mills
  • Exemption on Supply of Fish
  • Interest Free Loans for Solar Tube Wells

Package for Construction/Housing Sectors

  • Suspension of Minimum Tax on Builders
  • Reduction in customs duty on import of Construction Machinery

Incentive Package for Manufacturing:

  • Employment Credit to Manufacturers
  • Exemption to Greenfield Projects

Incentives for Companies

  • Tax rate for companies reduced from 35% to 32%
  • 20% increase in tax credit for companies enlisting in any registered stock exchange
  • Capital limit for small companies to enhance to Rs 50 million

Incentives for Aviation Sector:

Exemption from Customs Duty and Sales Tax:

Other Relief Measures

  • Tax rate reduced to 2% for salaried taxpayers earning Rs 400,000 to 500,000; for non-salaried with same income, tax rate reduced to 7%.
  • Advance income tax on vehicle’s token tax reduced from 20 to 25% for filers; on transfer reduced by 75% for filers and one-third for non-filers

New Taxes


  • Rate of Capital Gains Tax for securities increased from 12.5% to 15% and from 10% to 12.5%
  • For non-filer of income tax return increase in tax rate for contractors by 3%, for suppliers 2%, for commission agent 3% and 2.5% on profit on deposit
  • Advance income tax on transactions at of 0.6% for non-filers on all banking instruments and fund transfers
  • Uniform tax of 35% on all sources of income for banks – 2.5% increase on tax ratio on dividends for non-filers
  • 10% withholding tax on resident taxpayers on renting out or use of commercial, industrial and scientific equipment
  • One-time tax on affluent individuals/companies having income above Rs. 500 million at 4% of income for banking companies and 3% for others for rehabilitation of IDPs of FATA and Khyber Pakhtunkhwa

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