Latest news with #Rs16.66
Express Tribune
a day ago
- Business
- Express Tribune
K-P to unveil Rs21b health outlay
The Khyber-Pakhtunkhwa government has proposed an allocation of over Rs21.31 billion for the health sector in the upcoming Annual Development Program (ADP) for the fiscal year 2025-26. According to official documents, Rs16.66 billion has been earmarked for ongoing health projects, while Rs4.65 billion is proposed for new development schemes in the health sector. For settled districts, Rs13.5 billion has been proposed, while Rs3.48 billion is allocated for health projects in the merged districts. Additionally, Rs4.67 billion is proposed under the Accelerated Implementation Program (AIP) aimed at fast-tracking healthcare improvements in underdeveloped areas. Key initiatives likely to be included in the new budget are the enhancement of dialysis services in designated hospitals, upgrades to ICU, HDU, and emergency services, and the installation of centralized oxygen-generating plants in hospitals across the merged districts. A new initiative for hemophilia patients is also planned, wherein 50 per cent of treatment costs will be covered by the government and the remaining 50 per cent by non-governmental organisations (NGOs). For the first time, a diabetes control program targeting young children is being introduced in the development budget. Furthermore, a performance-based payment scheme for human resource hiring in the health sector has also been proposed. The Khyber-Pakhtunkhwa government is set to present a Rs2,000 billion budget on Friday, with over Rs1,800 billion allocated for current expenditures. The budget will show a surplus of Rs180 billion and will not introduce any new taxes. However, the scope and rate of existing taxes will be expanded. A total of Rs433 billion has been earmarked for development projects, including funds for the development of the newly merged tribal districts. The government will also announce the imposition of an "education emergency" in the new fiscal year. Under this initiative, furniture will be provided to 100 per cent of public schools. To boost its own revenues, the province has set a 40 per cent higher target for provincial tax collection compared to the current fiscal year. The new budget includes the establishment of four additional cardiac centers in addition to the existing ones, as well as special funds for the merged districts. Measures to support the province's vulnerable, marginalized, and low-income populations are also part of the budget. Funding has been allocated for key infrastructure and welfare projects including the Peshawar-DI Khan Motorway, a new electricity transmission line, the establishment of an insurance company, and the Chashma Right Bank Canal. Safe City projects in Peshawar, Bannu, and DI Khan will receive financial support, and the education budget is being increased by 13 per cent. The monthly honorarium for artists will also be raised from Rs100,000 to Rs150,000. A significant portion of the development budget will focus on completing ongoing projects. Priority will be given to projects that are 80 per cent or more complete, followed by those with 60 per cent completion. The number of new development projects has been capped at 500, with Rs195 billion to be immediately released, and up to Rs250 billion allocated as needed. For the first time, a special committee will be formed to approve projects based on priority and necessity. The budget will continue to prioritize the education, health, and social welfare sectors. Additionally, the 13-year throw-forward period for the Annual Development Program (ADP) will be reduced to seven years. A safari park is also planned for Misri Banda in Nowshera as part of the new fiscal year's initiatives.
Express Tribune
16-04-2025
- Business
- Express Tribune
Govt turns down additional freight charges proposal
Listen to article The federal government has scrapped the proposal of collecting additional freight charges to ease financial pressure on the oil industry by raising the petroleum levy on oil products to fund canal and road projects in Balochistan. The petroleum levy has been recently increased on petrol by Rs16.66 per litre and on high-speed diesel by Rs15.65 per litre to collect funds for implementing road and canal projects worth Rs370 billion in Balochistan. Now, the total levy on petrol is Rs86.66 per litre and on diesel it is Rs85.65 per litre. Among other petroleum products, the levy stands at Rs80.17 per litre on high octane blending component, Rs18.95 per litre on kerosene oil, Rs15.37 per litre on light diesel oil and Rs60.17 per litre on E-10 gasoline. According to sources, oil refineries and marketing companies have estimated that they will suffer a Rs34 billion loss during the current financial year due to sales tax exemption. To reduce pressure, the Oil Companies Advisory Council (OCAC) – an industry lobby – has called for addressing the sales tax exemption issue. In its proposals to the Federal Board of Revenue, the OCAC pointed out that the Finance Act 2024 had introduced sales tax exemption on petrol, high-speed diesel, kerosene oil and light diesel oil. These fuels were previously zero-rated that allowed input tax claims. However, with the exemption, the input tax has started accumulating. Since prices of these petroleum products are regulated by the government, the denial of input tax has increased the industry's operating and infrastructure costs. Its impact for tax year 2025 is estimated at more than Rs34 billion. Sources said that the oil industry, in consultation with the Petroleum Division, had worked out a proposal, according to which Rs4 per litre would be adjusted in the inland freight equalisation margin (IFEM), which would be passed on to refineries to offset the loss caused by sales tax exemption. The Petroleum Division also prepared a summary for presentation to the prime minister and other relevant forums for approval. However, the government turned down the proposal of Rs4-per-litre adjustment in IFEM, prompting an outcry from the oil industry. The industry has also approached the government for abolishing the super tax and other levies. It underlined the need for addressing the sales tax exemption matter in the federal budget for 2025-26 to help the sector operate smoothly. OCAC proposed that petroleum products should be again placed under the taxable regime to ease the burden. It argued that global and domestic economic pressures had already strained formal businesses. The super tax, originally a one-off levy, has continued to remain in place, which threatens the viability of documented companies. OCAC called for its removal in 2025-26. The industry body also objected to the minimum tax levied under Section 113 of the Income Tax Ordinance, citing that prices and margins for petroleum products were fixed by the government. These margins encompass establishment, development and operating costs, yet the current minimum tax consumes roughly 16% of the fixed margin of oil marketing companies. It recommended reducing the minimum tax applicable to refineries and OMCs to 0.25%.
