The 2024 budget may see a reduction in power tariffs for the industrial sector, providing relief to industries amid considerations for tariff rationalization and proposals to reduce costs for export-oriented industries. This move is expected to amount to around Rs 100 billion in benefits for the export sector. The budget is expected to be presented on June 7, with an estimated total expenditure of Rs 16,700 billion.
ISLAMABAD: The power tariff is likely to be reduced for the industrial sector in the budget 2024, ARY News reported citing sources.
According to sources, the government is considering relief for industries in the upcoming budget 2024-25.
Sources said that the electricity tariff may be reduced for industrial consumers, who currently pay an additional Rs 240 billion in electricity bills.
According to sources, the Ministry of Industry and Production is working on various proposals to reduce power tariffs for export-oriented industries.
The proposals for tariff rationalization have also been shared with the International Monetary Fund (IMF). The government is expected to finalize the package after the Prime Minister’s approval.
The package is expected to provide benefits of around Rs 100 billion to the export sector in the upcoming budget.
It is pertinent to mention here that the federal budget for the next fiscal year (FY2024-25) is likely to be presented on June 7, with an estimated total expenditure of Rs 16,700 billion.
According to sources, the initial estimate for expenditures on interest and loans is Rs 9,700 billion, while the initial estimate for subsidies is Rs 1,500 billion.
Sources said that the estimate for tax revenue is over Rs 11,000 billion, with direct taxes expected to contribute Rs 5,300 billion and federal excise duty expected to contribute Rs 680 billion.
Sales tax is likely to generate over Rs 3,850 billion, while customs duty is expected to generate over Rs 1,100 billion, sources said.
The upcoming budget for the year 2024 has generated considerable anticipation, especially within the industrial sector, as there are strong indications pointing towards a possible reduction in power tariff. If implemented, this change would have significant implications for businesses operating in this arena. The reduction in power tariffs would not only have a direct impact on the operational costs of industrial units but also potentially contribute to a boost in their overall competitiveness. It is imperative for stakeholders to closely monitor the developments pertaining to this potential tariff reduction and carefully assess the potential impact on their operations. Additionally, understanding the regulatory and economic factors underlying this potential change is crucial for businesses to prepare for any upcoming adjustments in their financial and operational strategies. As the official announcement draws near, the industrial sector remains on the edge of its seat, eagerly awaiting the unveiling of the budget and the potential implications for their operations.
Source: ARY NEWS
The budget 2024 is anticipated to bring a reduction in power tariffs for the industrial sector, particularly benefitting export-oriented industries. The proposed reduction aims to alleviate the burden of additional electricity bills faced by industrial consumers, amounting to around Rs 240 billion. With an estimated total expenditure of Rs 16,700 billion, the budget is expected to offer relief to the export sector, potentially amounting to Rs 100 billion. Furthermore, the budget is projected to include significant contributions from tax revenue, particularly from direct taxes, federal excise duty, sales tax, and customs duty.
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