Tax exemption announced for health and education sectors

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzaib on Friday said that tax exemption for medical equipment, including other items for healthcare and education purposes has been maintained.

The Finance Minister said that cardiac stents, school textbooks and printing materials, surgical cardiology and Ex. Tax exemptions for Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) have been maintained.

Meanwhile, participating in the discussion on the 2024-2025 budget in the National Assembly, he said, “We all need clean milk for the good health of the people, but tax exemption cannot be given for packaged milk that does not meet health standards.”

Aurangzeb said that the education and health tax exemption was granted in very difficult economic circumstances.
The Minister informed that teachers’ tests have also been granted tax exemption, which is also provided for in the draft Finance Bill for 2024-2025.

He said that tax exemption has also been introduced in the agriculture and fertilizer sector for providing relief. He said that high taxes are imposed on the salary group which has now been unified.

The minister said: “the gross domestic production (GDP) tax must be increased to 13%, which is currently 9.5%. He said if the country wants to move towards self-sufficiency and join the latest International Monetary Fund (IMF) program, revenue collection must be improved.

The minister said the government is committed to reconstructing and digitalising the Federal Board of Revenue (FBR) to increase the tax to GDP ratio to 13 per cent. He said there will be no category of non-filers in the tax system and everyone will have to pay tax.

He said that if people wanted relief, economic measures would have to be taken and in the 2024-25 budget, the government had allocated a record amount for the potential information technology and agriculture sectors.

Aurangzeb said tax evasion would be stopped and the tax net would be increased for retailers and real estate sector in the country.