The State Budget 2019 has projected over USD 1 billion as tax revenue next year. The amount constitutes 72% of aid and income the state would receive for the whole year.
The total revenue for the year 2019 has been calculated, to sum up to almost USD 1.5 billion. The amount is an increase of 7% when compared to the total revenue projected for the year 2018.
While the budget forecasts a revenue of over USD 223 million from Business and Properties Tax, this amounts to a year on year increase of 1.9%. The largest contributor to the segment would be Business Profit Tax, which is expected to generate a revenue of over USD 140 million. The amount is an increase of 1.18% compared to the amount forecast for 2018.
Withholding Taxation is expected to generate over USD 43 million and Bank Profit Tax is expected to generate over USD 36 million, as state revenue. In 2019, Goods and Services Tax is expected to generate 9.4% more than what was predicted for the current year, with a total of over USD 194 million. Meanwhile, Tourism Goods and Services Tax is projected to generate over USD 326 million.
The State Budget also forecast an increase in tourism occupancy rates. Green Tax is expected to contribute over USD 57 million while Airport Service Charges are expected to generate over USD 45 million.
While proposing the State Budget 2019, Minister of Finance and Treasury Ahmed Munawar said, more work would be carried out next year to strengthen the taxation structure and determine taxation policies.
In this regard, the minister announced a Tax Policy Unit would be established in the ministry next year to review the impact certain taxation laws would have on the economy, prior to the implementation of such laws.