Home Business Major Highlights of Mini Budget 2019

Major Highlights of Mini Budget 2019

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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.

Download Full Finance Amendment Bill 2019