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.