The recommendation for a reduction in FED was included in the original budget speech document distributed to media by the Ministry of Finance. Surprisingly, the plan was not addressed by the finance minister during his speech or in the ensuing budget speech that was posted on the website of the Ministry of Finance.
It’s unclear whether the administration changed its mind about cutting the aforementioned FED at the last minute or whether it was just inserted to the address in error. In the federal budget for the fiscal year 2023–2024, the federal government decreased the Federal Excise Duty (FED) on telecommunication services from 19.5 percent to 16 percent.
The government has decided to reduce FED on telecom services, according to Finance Minister Ishaq Dar, who made the announcement when presenting the federal budget on Friday.
Former Finance Minister Miftah Ismail boosted the federal excise charge on telecom services last year from 16 to 19.5%. The FED on telecom services has been decreased for FY24, which is anticipated to relieve pressure on enterprises and benefit the end customer.
Also read: All about budget 2023 -24 – Will we get out of these trying times?
