Islamabad: The National Assembly has passed the mini-budget proposal with a majority vote, a news source reported.
To address the concerns of local vehicles manufacturers, non-filers will be allowed to purchase locally built vehicles irrespective of their engine capacity.
It has also been decided that advance tax charges will not apply to the profit paid on Pakistan Banao Certificates, Sarmaya-e-Pakistam Limited, and Duty Drawback Bonds.
Ten-percent federal excise duty has been imposed on locally manufactured vehicles with engine capacity of 1,800cc or above.
In his budget speech, Finance Minister Asad Umar informed that the government had not presented the Second Supplementary Budget to generate revenues. He said that its purpose was to attract investments, increase exports, and provide trade incentives.
He also informed the national assembly that the government is not keen on accepting the tough conditions set by the International Monetary Fund (IMF) for transferring loans.
He further stated that the government has provided tax reliefs to the print media industry, small and medium enterprises (SME), the agriculture and housing sectors, and the stock market.
The tax rate has been reduced from 39% to 20% for banking incomes arising out of additional SME financing, agricultural financing, and low cost housing.
The government has also announced a revolving fund worth PKR 5 billion for providing interest-free loans for low-income housing.
Taxes due on wedding halls, sized up to 500 square feet, have been reduced from the existing total figure of PKR 20,000 to PKR 5000. This cut is aimed at facilitating the low-income segment.
The government has taxed expensive mobile phones and luxury cars. At the same time, it has allowed non-taxpayers to purchase vehicles up to 1300cc. The withholding tax on banking deposits and transactions for filers, however, has been withdrawn.
