Budget termed good news for capital markets

He commended the finance minister for raising the ceiling for annual turnover tax on SMEs from Rs10 million to Rs100m and reducing the minimum tax rate from 1.5 per cent to 1.25pc.

The rationalisation of customs duties on a large number of imported raw materials would have a positive impact on major sectors like textile, pharma, chemical, steel and food, he said.

Mr Aleem regretted that the continuation of the minimum tax regime meant the organisations with large turnovers but low profit margins would be subjected to a turnover tax at a rate of 1.25pc.

A lot of industrial expansion backed by the central bank’s Temporary Economic Refinance Facility will come online in the next fiscal year, thus increasing economic output, he said.

Most analysts termed the budget positive for the capital markets.

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