Khyber Pakhtunkhwa’s (KP) Finance Minister Taimur Saleem Jhagra on Tuesday unveiled the province’s budget for financial year 2019-20, which has a total outlay of Rs900 billion.
Spending on the annual development programme has been suggested to be Rs236bn out of the total outlay.
The budget speech was delivered in the KP assembly amidst protests and chanting by the opposition against the Pakistan Tehreek-e-Insaf’s (PTI) government in the centre for not issuing production orders of Pakistan People’s Party (PPP) co-chairman Asif Ali Zardari.
The provincial income taxes are being increased for the year 2019-20. According to the newly proposed regime, individuals with Rs10,000 to Rs20,000 monthly income will pay Rs330 per month, according to the budget speech.
The next portion of people, with an income of Rs20,000 to Rs50,000, will have to pay Rs350 per month.
A tax of Rs600 per month has been proposed for those individuals earning between Rs50,000 to Rs100,000 per month.
The individuals falling in the next category of Rs100,000 to Rs200,000 monthly income will have to pay Rs800 monthly. Similarly, Rs1,000 per month tax has been proposed for those earning Rs200,000 to half a million rupees.
For the public sector employees, the provincial government has proposed zero taxation for grade one to four employees of the provincial government. Rs100 in tax per month will be charged from the employees of grade five to 12, Rs200 tax per month will be charged from provincial government employees of grade 13 to 16, Rs300 monthly tax for grade 17, Rs500 per month for grade 18, Rs1,000 for 19, and Rs2,000 for grade 20 officers.
The government has also proposed to raise the rate of taxation on private companies and businesses.