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Highlights of Supplementary finance Bill of 2019

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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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