Islamabad: The Senate Standing Committee on Finance and Revenue on Tuesday (June 21) approved an increase in the advance tax on property for non-filers from 2% to 5%, news sources reported. The final recommendations of the committee have been included in the Finance Bill – 2022, which will be presented before the parliament for formal approval.
Reportedly, the committee, chaired by Senator Mandiwala, completed tax revisions for filers and non-filers. The committee also adopted the following proposals concerning different taxes in the real estate sector:
For a plot worth over PKR 25 million, the committee suggested a 1% presumed income tax after five years of land transfer. With the reactivation of the current Capital Gain Tax (CGT) slabs, the holding term for CGT has been decreased from the existing six years to five years.
The committee suggested raising the Federal Excise Duty (FED) on clubs, businesses, and first-class air travel from PKR 10,000 to PKR 50,000.
The committee suggested a 12.5% sales tax on the import of Electric Vehicles (EVs) of up to 1000cc or 50KV in CBU condition and a 17.5% sales tax on the import of EVs above 50KV. The FBR has recommended a consistent rate of 2.5 % sales tax on the import of all types of electric cars in CBU condition in the Finance Bill-2022.
The government proposed a 2% income tax on all individuals, firms, and corporations earning more than PKR 300 million with the tax applicable on the amount above the threshold value.
The committee increased registration fees of vehicles by 100% for non-filers to improve tax registration.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
