Umrah Travel

The federal government will impose a tax on Umrah, Hajj and foreign travel in the 2023-24 budget.

In terms of details, the federal government has been proposed to impose a 20 percent income tax on non-frequent travelers, while a five percent income tax has been proposed on taxpayers.

Income Tax

Furthermore, a withholding tax of 20 percent is to be imposed on the expenses of non-registrants and a five percent withholding tax on hotel and other expenses of tax subjects.

Sources said the federal government has also proposed to impose an additional tax on Umrah and Hajj pilgrims.

Prime Minister Shehbaz Sharif

Earlier, Prime Minister (PM) Shehbaz Sharif directed the government’s economic team to use all possible resources to provide maximum relief to the common man in the budget for the upcoming fiscal year 2023-24.

The prime minister ordered to take all possible steps to minimize the financial crisis of the middle- and lower-income strata of society.

During the meeting, the economic team briefed the Prime Minister on the preparation of the budget in addition to revised tax collection targets for the current fiscal year and proposed targets for the next fiscal year.

It is pertinent to mention here that the federal government has proposed to provide incentives to allied industrial and development sectors in the 2023-24 budget as this will increase remittances through banking channels.

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