Islamabad: The government on Wednesday announced a 19% rebate on income tax generated from loans to low-income housing, small businesses, and agricultural projects – a news source reported.
Presenting the mini-budget, Finance Minister Asad Umar said that his government wanted to facilitate the nation’s underprivileged segments. He said that an interest-free revolving credit (Qarz-e-Husna) provision of PKR 5 billion will be introduced to fund constructions of low-cost houses.
Moreover, the government slashed the fixed tax on marriage halls by PKR 15,000. This tax has been cut down to PKR 5,000 from the existing amount of PKR 20,000.
The executive further waived off the withholding tax on banking deposits and transactions for filers. Similarly, small businesses have been exempted from paying withholding tax every month. Their owners will now have to submit returns twice every year.
The government also plans to introduce a tax scheme in Islamabad to facilitate traders. Similarly, a 0.02 percent withholding tax on trading has been abolished.
