Miftah Ismail said it would also help enhance disposable income as well as revenue collection, which would have a positive impact on economic development and growth
ISLAMABAD, (UrduPoint / Pakistan Point News – 10th Jun, 2022 ) :Miftah Ismail said it would also help enhance disposable income as well as revenue collection, which would have a positive impact on economic development and growth.
He said the government also proposed tax relief measures for business associations and association of persons, including enhancing tax exemption from Rs 400,000 to Rs 600,000.
He said the tax on the income of welfare certificates, including saving certificates and pensioners benefit accounts, was reduced from 10% to 5%.
The minister said the government also proposed fixed income and sales tax for small retailers, based on their electricity bills. It would make the registration and reporting system easy for the purpose.
The tax amount would range from Rs 3,000 to Rs 10,000 as being the final settlement, and the Federal board of Revenue would not inquire about it, he added.
He said the industrial units and other businesses were allowed to adjust 50% of initial depreciation, which was an additional burden for them. The government proposed initial depreciation by 100% during the first year that would help promote industrialization in the country and help to absorb increasing manpower, he added.
The minister said in order bring the wealthy and rich people under the tax net to reduce the tax burden on the under-privileged class, the government also proposed to enhance advanced income tax on motor vehicles of upto 1600 cc. About 2% tax would be charged on electric vehicles, while 100% increase was proposed in the tax rate for non-filers.
He said as the banking sector witnessed growth due to increase in the interest rates and the safe mode of investment, the government proposed to enhance tax ratio on banking companies from 39% to 42%.
The minister said the government was determined to document the national economy and introduced some measures in that respect, aimed at ensuring full tax compliance culture.
Amendments were being introduced in the tax law pertaining to resident person.
He said the government also proposed 2% advanced income withholding tax on the money being sent abroad through credit cards, debt and pre-paid cards, however it would be adjustable against the payable tax.
The indirect tax collection, he added, had a positive impact on the FBR’s overall revenue collection. The government was also determined to provide relief to common man, he added.
The minister Pakistan was facing acute energy shortages, whereas the fuel prices were touching new peaks. The government was taking measures to use renewable energy resources, he added.
He said the government proposed to exempt the local and imported solar panels form the sales tax. The consumers using less than 200 units would be provided loan facility by the local banks with repayment in easy installments.
He said the government also decided to withdraw sales tax on agriculture inputs and farm machinery. including tractors, maize, canola and sunflower seeds. The rice seeds were exempted from the sales tax.
In order to promote health care facilities, he said, the government proposed to provide exemption on all facilities of hospitals, having the capacity of 50 beds, including electricity and other supplies.
The minister said the government also proposed some structural changes in alternate dispute resolution mechanism, according to which Rs100 million or above demand could be benefit from ADRC.
He said the government also proposed to withdraw custom duty on farm mechanization and logistics in order to provide relief to the farming communities.
He said there were about 400 tariff headings and for promoting the industrial growth in country and development of industrial sector, all additional custom and regulatory duties were being rationalized.
For the promotion of textile sector in the country, the tariff structure of artificial yarn had also been rationalized, he added.