Last glance at the last year budget highlights; these are the changes investors are expecting from this year budget.

Today at 4 pm budget for this year will be unveil, as this is the first budget after stable government in the country there is a lot of excitement, expectation and anticipation in people before budget.

 Here is a brief of 2074/2075 budget.

Total allocated budget was Rs 12.79 kharba; 62.83% of the budget was allocated for re-current expenditure, 26.21% of budget was granted for capital expenditure and remaining was for financial managements. Last year earthquake rehabilitation budget was Rs 146 arba which is expected to reduce this year.

Government discouraged alcohol and tobacco production by imposing high custom duties and tax, which is expected to continue this year.

Income tax for individual was in three slabs; Up to Rs 3.5 lakhs of income, 1% income tax was charged, for next 1 lakhs 15% was charged, balance exceeding 4.5 lakhs was charged 25%, which is expected continue in this budget too.

Government had encouraged lower middle class people for taking life and health insurance by exempting tax of maximum up to Rs 20,000. Government had encouraged investment in productive sectors (excluding alcohol &tobacco) by reducing land tax by 50%, last year.

New manufacturing Industries (except alcohol and tobacco) with more than 500 employee and more than Rs 1 crore capital are privileged with 100% tax exemption for first five year. Old and new manufacturing companies were given preference in last budget by exempting tax on different levels under different condition and it displays positive attitude of government towards manufacturing sector.  

Banking & finance industries, insurance companies and petroleum industries were charged with 30% corporate tax whereas other industries (except alcohol &tobacco) had to pay 25% as corporate tax.

Capital gain tax for retail investors was at 5% for listed shares and 10% for non-listed share. Capital gain tax for institutional investors was at 10% for listed shares and 15% for non-listed shares.

Custom duty on imports of medical and agricultural products was relatively low and custom duty on vehicles & precious metals is relatively high. Imports duty on television was 55%, last year. Government ensured medicines and agricultural product would be available to people at low cost. Health insurance to all people within three years was a great initiative by government last year.

As an investors we expect, government to lower capital gain tax and encourage deprived industries by relieving them with reduced taxes this year.