Tax Reliefs
- The minister announced to eliminate withholding tax on banking transactions for filers to encourage the tax-paying culture.
- Minister announced that products for renewable energy will also be exempted from sales tax and customs duty for the next five years.
- Withholding tax on trading in the stock exchange will also be removed.
- Duty on import of newsprint paper has been eliminated as well.
- The government has also removed the tax on bids for sports franchises until they reach profitability.
- All machinery in special economic zones exempted from all taxes.
- New industries to be exempted from income taxes for five years.
- From July 1 super tax will also be eliminated for non-banking companies.
Decrease in Taxes
- The government has proposed a decrease of 20% on income tax from loans to SME and agriculture sector.
- Similarly, the government has cut the taxes on small marriage halls to just Rs. 5000 from Rs. 20,000.
- Reduction on import duty on raw material announced.
- He proposed to continue 1pc per year reduction in corporate income tax.
- Non-filers can now buy houses of up to Rs. 5 million after paying excessive taxes.
Auto Sector Taxes
- Under the new finance bill, non-filers will now be able to purchase vehicles of up to 1300cc engine capacity after paying higher taxes. Non-filers will only be allowed to buy vehicles that have been locally assembled/manufactured.
- Tax increased for vehicles over 1800CC.
- A decline of five percent on duty announced on diesel engines for agricultural purposes.
Mobile Phones Taxes
- Taxes on low priced phones have been decreased. Meanwhile, expensive phones will be taxed at a similar rate. However, the scheme has been simplified into three taxes and slabs.
- Taxes on Imported Phones:
- Rs. 150 Customs Duty on imported phones valued under $30.
- Rs. 1,470 Customs Duty on imported mobile phones worth $30 to $100.
- Rs. 1,870 Customs Duty on imported mobile phones worth $100 to $200.
- Rs. 1,930 Customs Duty on imported mobile phones worth $200 to $350.
- Rs. 6,000 Customs Duty on imported mobile phones worth $350 to $500.
- Rs. 10,300 Customs Duty on imported mobile phones worth more than $500.
- Customs Levy on Imported Phones:
- No Levy on imported phones valued under $100.
- Rs. 500 levy on imported mobile phones worth $100 to $200.
- Rs. 1,500 levy on imported mobile phones worth $200 to $350.
- Rs. 3,500 levy on imported mobile phones worth $350 to $500.
- Rs. 7,000 levy on imported mobile phones worth more than $500.
- Another slabbed tax has also been imposed on imported mobile phones:
- Rs. 70 on imported phones valued under $30.
- Rs. 730 on imported mobile phones worth $30 to $100.
- Rs. 930 on imported mobile phones worth $100 to $200.
- Rs. 970 on imported mobile phones worth $200 to $350.
- Rs. 3,000 on imported mobile phones worth $350 to $500.
- Rs. 5,200 on imported mobile phones worth more than $500.
Miscellaneous Taxes
- Easy loans will be given to the low-income sector for housing. A revolving fund of Rs. 5 billion introduced for this purpose.
- Promissory notes for exporters, which will allow them to take loans from banks on the basis of these notes.
- Capital loss carry-over to be allowed for 3 years (stock trading).
- 0.02 per cent withholding tax on trading to be abolished.
- Gas Infrastructure Development Cess to be removed from fertiliser production.
