ISLAMABAD: The federal government has proposed Rs264 billion in new taxes in the budget for the 2021-2022 fiscal year.
Federal Revenue Council member Tarique Chaudhry informed that FBR has proposed new policy measures on income as well as sales tax and federal excise duty.
FBR proposed Rs52 billion in new customs taxes, Rs215 sales tax and federal excise tax and Rs116 billion in income tax; on the other hand, they also proposed relief of Rs 42 billion in customs, Rs 19 billion in sales and FED, and Rs 58 billion in income tax, leading to the overall collection of Rs 264 billion in taxes in the next fiscal year.
A member of the Inland Revenue said the tax department also proposed implementing measures of Rs 242 billion in the 2021-2022 budget.
The government has set a revenue target of Rs 5,829 billion for the next fiscal year.
“We will reach Rs4,700 billion in the outgoing fiscal year and if we add 8.2% inflation, in addition to adding the above-mentioned policy measures, we will then be able to collect Rs5,829 billion in taxes over the course of the year. next fiscal year, ”said the IR member.
While explaining the income tax revenue measures, he said the tax department will charge 7.5% adjustable tax to non-active taxpayers whose electricity bill is over Rs 25,000 in areas residential.
We estimated to recover 1 billion rupees from this measure, he added.
Likewise, to discredit the “on” money concept, it has also been proposed to collect the tax from those who did not reserve the vehicle but bought it later.
He also said that the IR has added certain sectors, such as pharmaceuticals, poultry, animal feed and edible oil, to the reseller holdback as well as distributor lists and that it has been proposed to withdraw income tax from them.
He said they would collect Rs 20 billion through streamlining procedures and automating business processes for withholding control.
In addition, they estimated that they would collect Rs 10 billion from property income as well as real estate valued under Rs 5 million.
He said that FBR estimated to collect Rs 5 billion in tax for the export of services on the same basis as the export of goods which will be taxed at the rate of 1 percent under the final tax regime.
In accordance with the finance bill, it has also been proposed to levy a withholding tax on rental income from subletting.
In addition to this, IR member Tariq Chaudhary informed that they have proposed to grant an income tax relief of Rs 58 billion, for which IR will remove 12 withholding taxes, such as the payment fees to residents, tax on cash withdrawals over Rs 50,000, tax on banks. instrument, tax on non-cash banking transactions, tax on persons paying amounts abroad by credit or debit card or prepaid cards.
In addition, it was also proposed to abolish the tax on domestic air travel, the tax on mineral extraction, the tax for members of a stock exchange registered in Pakistan, the tax on marginal funding by the NCCPL, the CNG station tax and the tax on certain petroleum products. some products.
Chaudhry said the tax department has also proposed to impose federal excise taxes at the rate of Rs1 on mobile phone calls exceeding three minutes. Likewise, it has also been proposed to impose FED on internet data usage at the rate of Rs5 per GB.
We have an estimate to collect Rs70 billion from this tax, he added.
He added that the customs estimated to collect 1 billion rupees in tax by the imposition of the FED on the electronically heated tobacco.
Ali informed that they have proposed to increase regulatory fees on prepared foods, feeds, perfumes, cheeses, hair shampoos and many more as they fall into luxury items.
Likewise, he said that they also proposed to increase the import duty on mobiles to promote the local industry. Pakistanis imported Rs 270 billion worth of cellphones last year, and the government not only wants to promote the local industry but also export phones, he said.
On top of that, he said FBR has proposed to reduce the CD on 584 tariff lines, including cotton, woven to incentivize the textile industry.
He also said that the tax department has also proposed to reduce tariffs on goods related to tourism, shoes, paints, chemicals and artificial leather industries.
Hamid Ali also said the government has decided to end taxes, including CDs, on the importation of 850CC vehicles. We not only expect a Rs 200,000 drop in vehicle prices down to 850CC, but also to attract new investors.
The IR member said that FBR proposed to levy a sales tax on the retail price of sugar, as it would be moved to the third schedule.
In addition, it has also been proposed to levy a sales tax on the sales of used lead acid batteries as it is an unorganized sector.
He said that we have also proposed to remove the zero-ratings of crude oil, parts and components of zero-rated plant and machinery, importation of plant and machinery by the oil and gas industry, and supply, repair and maintenance of ships.
The IR member informed that it has also been proposed to increase the sales tax on potassium chlorate from Rs 80 per kg to Rs 90 per kg in addition to the standard rate of 17 percent.
IR member policy said that there we also offered to collect sales tax on sales of goods through the online marketplace, in addition to the tax department, he also offered to get a license for each brand.
According to the budget bill, it has also been proposed to reduce taxes on the export of services from 17 to 16 percent in the territory of the capital Islamabad.