Tuesday , March 31 2020

Massive reduction in taxes, duties announced in PTI’s third finance bill

Islamabad: Finance Minister Asad Umar presented the Pakistan Tehreek Insaf (PTI) government’s third finance bill which is also called the Mini-budget by the government in the National Assembly on Wednesday.

While talking on the floor of National Assembly, Asad Umar said that it is not a budget,but a relief economic package. “The government wants a resolution to economic woes of the country”, he expressed saying that present government didn’t want next governments to complain about previous economic wrongdoings.

Umar said that previous government had left the treasury in deficit and it was the responsibility of parliament and constitution to reduce the inequality  between the rich and the poor.

He expressed that govt aims to present a ‘medium-term economic framework’ next week and it is hoped that  opposition would show positive response over it for its further improvement.

While responding to opposition’s lashes, he said that former finance minister Ishaq Dar would read out ‘a pack of lies’ in name of finance bill.

He also lashed PML-0N govt for the crisis in gas sector or  Rs 150 billion and the deficit overall of the country lies somewhere between 2500bn to Rs. 3000bn.

While lashing PML-N govt for economic  crisis and said,“these people left the patient in the ICU.”

“The exports were left at the lowest level; the economy cannot be put back on the track until settling the budget-deficit”, he said

‘Supplementary Finance Bill 2019’

  • Income tax on banks offering loans for agriculture, low-income housing scheme, and small businesses lowered down from 39 per cent to 20 per cent
  • Non-filers can buy cars above 1300cc but with increased tax
  • Duty on cars above 1800cc fixed at 25 per cent
  • Withholding tax on banking transactions abolished for tax filers
  • Six per cent tax on business bank accounts removed; super tax on non-banking companies to be repealed from July 1
  • Duty on import of newsprint cancelled.
  • Duty slashed on the import of artificial kidney, medical equipment, footwear; duties on raw material for home appliances, diapers and sanitary products furniture, ceramics, lessened.
  • Three different taxes on cell phones clubbed into one; tax on expensive mobile phones not being reduced
  • Promissory note scheme being introduced for exporters.
  • Advance tax on stock exchange members abolished.
  • Income tax slab for small marriage halls decreased from Rs. 20,000 to Rs. 5000
  • Greenfield projects to be exempted of all taxes including sales tax
  • Five-years income tax immunity on investment in Greenfield projects
  • Investment in solar-energy projects exempted from taxes

Income tax is reduced on banks, filers are also exempted from withholding tax, Umar further said that in 6 months the agricultural loans may envisage an increase of 22%. He said that government aims to encourage small business, and if the loans are granted, the business will flourish.

“Hence, the government is reducing the income tax on banks offering loans for agriculture, low-cost housing, and small businesses, from 39 per cent to 20 per cent”, he said

Finance Minister said that the government wanted to encourage the p.

He also urged people to file their income taxes on regular basis, therefore unnecessary taxes are being abolished by the government.

The finance minister also told that a new scheme of Rs. 5bn is planned under the name ‘Qarz e Hasna’ scheme.

Finance minister further informed government was reducing tax on small marriage halls from Rs. 20,000 to Rs. 5000.

He also told that government has full attention towards energy sector to bring investment in the special economic zone.

“Also, investment in solar energy projects will be exempted from all taxes for five years”, he said.

While talking about Banking sector, he said that six per cent tax regime on business accounts will also be abolished, whereas the business would have to submit withholding tax details only twice a year.

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