NAME: M.

KHURRAM AYUB
ROLL NO: 10
ASSIGNMENT: INTERNATIONAL
BUSINESS
SUBMITTED TO: SIR. SUNNY AMIN
 Positive points in fiscal budget 2019-20

Salaried Class:
Government increased minimum wages from Rs.15000 to Rs.17500 .It is
very good new for labor sector. Because due to growing inflation it is very become difficult for
them to fulfill their necessities of life .

Consumer:
Sales tax on powdered milk reduced to 10% and food supplied by restaurants
reduced from 17.5% to just 7.5%. That will bring a sigh of relief for parents and will make dining
out a bit cheaper .Common people can enjoy more with their limiting budget .

Oil & Gas:

Oil fulfill our need of energy in different forms. A 3 percent value-added tax (VAT)
on all petroleum products has been withdrawn. Expect slightly lower petroleum prices from next
month. Decrease in Oil and gas prices it effect overall economy .

Cheaper Vehicles With Higher Engine Capacities:

During the previous fiscal year, the
government imposed a 10% FED(Federal excise duty) on all vehicles with an engine capacity of
over 1,700cc. This FED is now going to come down as vehicles of up to 2,000cc will be charged
a 5% FED while any vehicle with an engine capacity of over 2,000cc will be charged a 7.5% FED.
Now government has proposed 2.5% of the car’s value as FED for vehicles that have 0-1000cc
engine capacity. This has been done to reduce the FED on vehicles with higher engine capacities.
With an exemption in auto part taxes, the new FED will have little to no effect on the final car
prices that are locally manufactured or assembled.

LNG:
Pakistan is developing country. Our need of fuel and energy day by day. To fulfill our need
we mostly import oil & gas and LNG. The government has proposed to reduce the duty on LNG
(liquefied natural gas) import.
Local Industries:
The PTI government has granted an exemption on customs duty for more
than 1600 raw materials for industries including, pharmaceuticals, paper industry, refineries, and
textile .

Pharmaceuticals:
Duties on raw material import reduced by 3 percent. Exemption proposed
on customs duty on 18 medicinal imports.

Paper Industry:
Almost complete exemption on duty on ingredients imported for the paper
industry, which means cheaper liquid food packaging, writing, and printing paper.it effect on the
cost of goods .