Budget 2022 – 2023 will increase tax on online gaming and social media applications
The federal government will release the Budget 2022-23 on the 12th of June. Presently, the government is pondering over a proposal to increase tax on income made through social media platforms including TikTok, YouTube and other apps.
According to sources, the coalition government is more inclined towards increasing income tax on income generated through online gaming, TikTok, YouTube, and other social media platforms. The authorities are also considering a proposal to hike income tax on income of over Rs. 1 million per annum.
Why is the government planning to take such measures?
The International Monetary Fund (IMF) has imposed tough conditions to secure a $1 billion tranche from the international lender. According to sources, IMF has put forward several clauses for the resumption of its program and has asked the PM Shehbaz government to reduce income tax credits and allowances.
Govt employees’ salaries and pension to be revised
The federal government is also mulling over proposals to increase the salaries and pensions of government employees. Relevant authorities have prepared three proposals for a hike in the budget for the fiscal year 2022-23.
According to sources in the finance ministry, there is a plan for a five to fifteen increase in salaries of the government employees. However, it is linked with the prior approval of the International Monetary Fund (IMF).
As per anonymous authorities, the ad-hoc allowance for employees in BPS-1 to BPS-19 will be hiked by five to ten percent. The salaries for BPS-20 to 22 will be increased by ten to fifteen percent. The pension will also be increased by five to ten percent. Pay and pension commission has not yet submitted its report and the government has directed them to submit it as soon as possible.
For now, people can only assume the impact of these changes on their lives. Once the Budget 2022-23 is announced on the 12th of June and implemented, things will become much more clear.
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