President Zardari signs Finance Bill to approve budget 2024-25

President Asif Ali Zardari has signed the Finance Bill 2024, thereby approving the federal budget for 2024-25. A signed copy of the Finance Bill will be sent to Parliament, and the new federal budget will come into effect on July 1.

On June 28, amid protests from the opposition, the National Assembly passed the federal budget during a session chaired by Speaker Ayaz Sadiq. The approved budget is valued at Rs18.877 trillion. The session was marked by a walkout from the opposition, who were not permitted to voice their objections during the financial bill's passage.

Despite the opposition's protests, the assembly passed a provision to increase tax rates on international air travel tickets. Starting July 1, passengers in economy and economy plus classes will face an additional tax of Rs12,500 on international tickets. The tax hikes are even more substantial for travelers in business, club, and first-class. For travel to North, Central, and South America, the ticket tax rate has increased to Rs350,000. Additionally, business and club class tickets for the USA and Canada will now have a tax of Rs100,000.

For those traveling to the Middle East and Africa, there will be an additional tax of Rs30,000 on business, first, and club class tickets. Similarly, a tax of Rs210,000 will be imposed on business, first, and club class tickets for air travel to Europe, as well as to the Far East, Australia, and New Zealand.

The budget's approval represents a significant step in the government's fiscal plan, despite the contention and opposition walkout over unaddressed concerns.