NA approves federal budget for 2011-12

ISLAMABAD: The National Assembly Wednesday passed Finance Bill 2011 giving legal effect to the budgetary proposals for the next financial year and with this, the new budget with a total outlay 2767 billion rupees stands approved.

Finance Minister, Dr Abdul Hafeez Shaikh moved the bill in the House to give effect to the financial proposals of the federal government for the next fiscal year starting from July 1, 2011 and to amend certain laws in the bill.

The House rejected amendments of opposition with majority vote and approved those moved by the Finance Minister to amend the Finance bill 2011.

Hafeez Shaikh said that the upper house of the parliament had proposed 66 amendments in the bill, out of which 20s were incorporated that reflected government's intention that it was taking seriously consideration to the suggestion provided to it.

Responding to various oppositions with regard to sales tax, the federal minister said that the government intends to reduce the overall sales tax rates to 15 percent. It had reduced the rates to 17 percent last year and from 17 it was now reduced to 16 percent.

On the issue of income tax exemption, the federal minister said that keeping in view the inflationary trends, the government had enhanced the income exemption from Rs.300,000 to Rs.350,000.

He said that the government has to strike a balance while taking such decision.