KARACHI: No new taxes are being imposed and the entertainment duty has been ended in the annual budget of the province for 2022-23, Sindh Chief Minister Murad Ali Shah announced on Tuesday.

“We are sensitive to the needs of people, especially farmers, due to the recent water crisis and increase in the price of essential commodities. In order to provide relief at the grassroots level, we have designed special programmes in this budget to support hard-hit social and agriculture sectors,” he said before presenting the budget in the Sindh Assembly.

Opposition benches protested when the chief minister began his speech and hurled slogans against the government. The PTI is among those on the opposition benches in Sindh.

Salient features

• No new taxes for second consecutive year
• Proposal to end cotton fees, professional tax, and entertainment duty
• Rs1.713 trillion worth of tax-free budget
• Rs26.85 billion worth of pro-poor package
• Rs23.3b wheat subsidy
• Developmental programme: Rs332 billion
• Ad hoc relief allowance for government employees at the rate of 15% of the basic pay scale is being proposed

The PTI disturbed the Sindh CM in his speech as the latter tried to announce budget proposals. But Murad countered them by saying that soon more members from the opposition benches would join the treasury as most of the lawmakers have already left them.

Key points

• Sindh to bring salaries of government employees at par with other provinces
• 5% increase in pension
• Adhoc Relief Allowance at the rate of 15 percent of Basic Pay Scales to government servants from 1st July 2022
• Employees of Grade 5 will be upgraded to Grade 7 from July 1
• Exemption for cable TV operators
• Rural cable TV operators will be exempted from “R” category SST under PEMRA license till June 30, 2023
• Tax on food delivery channels from home chefs has been reduced from 13% to 8% for two years
• In all other cases the services rendered or provided by the commission agents will be 13% applicable to SST
• 47,000 appointments issued to teachers
• Rescue 1122 service launched
• People’s bus service launched
• Rs326.80 billion allocated for education
• Sindh government to set up university or university campuses in seven districts
• Health budget estimate set at Rs206.98 billion

“Disparity Allowance at the rate of 33 per cent of Basic Pay will be paid to Civil Servants in BPS-1 to 16 and at the rate of 30 per cent to Civil Servants in BPS-17 and above in lieu of the differential rate of Ad-hoc Relief Allowances 2013, 2015, 2016, 2017, 2018, 2019, 2020 & 2021, which are being abolished from July 2022,” he said.

Cabinet approves budget

“This budget is for the poor people. Steps have been taken for social protection and economic stability,” Sindh Chief Minister Murad Ali Shah said while presiding over the cabinet meeting.

The Sindh cabinet has approved the Rs1.71 trillion worth of “tax-free” budget. Describing the financial outlay for 2022-23 as “best”, he said it has been formulated with the assistance of cabinet members and stakeholders.

The details of the salary package have been sent to Sindh Chief Minister Murad Ali Shah.

The decision to give a pay raise to civil servants is akin to the one taken by the federal government and other provinces. Finance Minister Miftah Ismail had avoided questions on such a decision and allowances during a post-press conference on Saturday.

Pakistan is seeking an International Monetary Fund bailout package to steer the country out of the economic crisis and protect its foreign reserves. The rupee value also depreciated against the dollar and reached an all-new record level of Rs203.86 against the greenback.