23/01/2019
Salient features of Finance Supplementary (Second Amendment) Bill of 2019
23-01-2019: Islamabad, Government of Pakistan Led by Mr. Imran Khan of PTI today tabled a Finance Bill namely Finance Supplementary (Second Amendment) Bill of 2019.(The Finance Bill)
Following are the prominent features of the said Finance Bill;
• Tax on income generated from loans to small businesses, agriculture sector and low-income housing to be reduced from 39pc at present to 20pc.
• Introduction of interest-free revolving credit of Rs5 billion (qarz-i-husna)
• Withholding tax on bank transactions waived off for tax filers.
• Ban on purchase of vehicles for non-filers lifted for new locally manufactured cars up till 1300CC capacity, but higher taxes will apply.
• Small businesses exempted from submitting withholding tax returns every month; will do so only twice every year.
• Rs20,000 fixed tax on marriage halls reduced to Rs5,000.
• Pilot scheme to be introduced in Islamabad to facilitate traders in filing and paying taxes.
• Duty on newsprint abolished completely.
• Investment in solar panels and wind turbines to be exempt from duties and taxation for five years.
• Reduction and abolishment (in some cases) of duties on raw materials to support export industries.
• Super tax on non-banking companies to be abolished from July 1, 2019.
• Continuation of 1pc per annum reduction in corporate income tax.
• Capital loss carry-over to be allowed for 3 years (stock trading).
• 0.02 per cent withholding tax on trading to be abolished.
• Import duties on cars with engine capacity of 1800CC and above to be increased.
• Taxes and duties on mobile phones rationalised: taxes on budget sets to be reduced, high-end sets to become more expensive.
• Machinery for greenfield projects (including renewables) to be exempt of customs duty, sales tax and income tax (for five years)
• Tax refunds to be worked out; promissory notes to be issued by mid-February.
• Gas Infrastructure Development Cess to be removed from fertiliser production.
• Duty on diesel engines for agricultural applications to be reduced to 5pc from current 17pc.
• Tax on income from loans to SME sector to be reduced to 20pc.
• Agricultural tax will be dropped to 20 per cent.
• Rs5 billion revolving fund (Qarz-e-hasna) will be introduced.
• Non-fillers will be able to purchase small and mid-size cars up to 1300CC, but the tax would be increased.
• Withholding tax for filers on banking transactions will be eliminated to encourage the culture of paying taxes.
• Rs20,000 fixed tax on marriage halls reduced to Rs5,000.
• Import on duty for newsprint will be eliminated.
• Pilot scheme to be introduced in Islamabad to facilitate traders in filing and paying taxes.
• Super tax on non banking companies to be abolished from July 1.
• Small businessmen will be submitting withholding tax returns only twice every year, they are exempted from submitting withholding tax returns every month.
Pakistan: Salient features of Finance Supplementary (Second Amendment) Bill of 2019 23-01-2019: Islamabad, Government of Pakistan Led by Mr. Imran Khan of PTI today tabled a Finance Bill namely Finance Supplementary (Second Amendment) Bill of 2019.(The Finance Bill) Following are the main features o...
