Highlights of Supplementary finance Bill of 2019

Pakistani Minister of Finance Assad Umar has presented the Finance Supplementary Second Amendment bill 2019 in the National Assembly today. Highlights of the finance bill are as follows

  • 49 per cent tax on small and medium enterprises reduced to 20pc.
  • Interest on agricultural loans reduced from 49pc to 29pc.
  • 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 cars up to 1300CC capacity, but higher taxes will apply.
  • Small businesses exempted from submitting withholding tax returns every month; will do so only twice every year.
  • Rs20000 fixed tax on marriage halls reduced to Rs5000.
  • Pilot scheme to be introduced in Islamabad to facilitate traders in filing and paying taxes and later extended throughout the country if successful.
  • Duty on news print 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.
  • Continuation of 1pc per annum reduction in corporate income tax.
  • Capital loss carry-over to be allowed for 3 years (stock trading).
  • Taxes on cars with engine capacity of 1800CC and above to be increased.
  • Taxes on mobile phones rationalized: taxes on low cost phones to be reduced, high end sets to become more expensive.
  • Tax refunds to be worked out; promissory notes to be issued by mid-February.
  • Gas Infrastructure Development Cess to be removed from fertilizer production.
  • Duty on diesel engines for agricultural applications to 5pc from current 17pc.

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