Minister of revenue presented the budget of 2019 today 11th June 2019
Following are the Salient features of budget
Property can’t be registered in the name of nonfilers.
Those who will provide jobs to new graduates will be given tax rebates; those passing out after 2017 to be considered as new graduates
Rs1.2mn was legal limit for income tax exemption — it will be reduced to Rs0.6mn for salaried persons and Rs0.4mn for others
The loophole of income declared as gifts will he closed as such gifts will be treated as income from other sources.
Super tax to be imposed on those with income above Rs0.5bn.
Withholding tax to be imposed on purchase of properties irrespective of the value of the property
Tax on services to be introduced
Tax on marble to be increased to 17pc
Tax on services to be introduced
Tax on sugary beverages to be increased to 13pc
Edible oil taxation to Rs 40 per kg; FED on it to be increased
17pc sales tax on ghee, oil etc
Rs2 per kg on cement
ON CARS: FED not only on 1700c and above, but 2.5pc upto 1000cc, 7.5 on more than 2000cc
Rs5,200 tax per one thousand cig sticks, Rs117bn target of revenue from this measure
Refund bonds: FBR will settle tax refunds by issuing promissory notes
Active tax payer list issue will be resolved
Taxation on CNG to be increased
Cotton etc will be slapped with 10pc tax
Sugar now taxed at 8pc and Rs18bn revenue is obtained from it, it is advised to increase to 17pc
Cottage industry: new definition is advised to include only those industries earning less than Rs2 million turnover per annum
It is further recommended that cars which are more than 2000CC in capacity see a federal excise duty of 7.5pc imposed.
Increase in federal excise duty on cigarattes advised
Hammad Azhar announces that the budget recommends a federal excise duty of Rs5,200 on every 10,000 cigarettes be imposed.
Duties will be reduced to boost non-traditional exports
To boost non-traditional exports like wooden furniture, duties will be reduced
To save Pakistan’s forests while safeguarding the furniture industry, duty on imported wood will be reduced from 100pc to 3pc
Steel duties will also be reduced to 5pc to help razor exporters
Duties will also be reduced on several domestic goods, printing and solar panels and chemical industry
Hydrocracker plant machinery to also be exempted from duty
Medicinal ingredients will be given a 3pc import duty exemption
Textile machinery and parts will be exempt from duties
Textile machinery and parts will be exempt from duties. Duty will also be lowered on flexible fibers and non-woven materials
Paper scrap and pulp will be exempted from custom duty as paper is an important input in the educational sector
On different types of paper, duty to be reduced from 20pc to 16pc. This will bring down prices of paper and books, and printing presses will get a boost
Sugar tax advised to be increased to 17pc
Sugar prices are likely to go up as it has been recommended that the sales tax, which previously stood at 8.5 per cent, now be increased to 17 per cent.
Sugary drinks will also see an increased tax duty of 13.2 pc versus the previous figure of 11.25 pc.
Tax measures
Tax to GDP ratio is 12pc right now — among lowest in world. Will be brought to 20pc
Agenda for tax reform created that will give macroeconomic stability and help future generations
This agenda is part of the government’s medium term policy framework
The government has been foregoing Rs972.4bn in tax breaks to different sectors
Likewise, the present customs duty regime is losing the country Rs20bn in annual revenue
Govt giving final shape to a corrective customs tariff that will be implemented phase wise
