Monday, 15 April 2024
Trending
Salient Features of Finance Supplementary Bill 2023 Mini Budget
UPDATES

Salient Features of Finance Supplementary Bill 2023 | Mini Budget

Salient Features of Finance Supplementary Bill 2023 | Mini Budget

Salient Features of Finance Supplementary Bill 2023 | Mini Budget. Following are Salient features of mini budget or Finance Supplementary Bill, 2023 presented by Finance Minister Ishaq Dar in the National Assembly on Wednesday.

For the revival of the IMF program, the Federal Government initiated the process of taxation measures through the issuance of two SROs on February 14, 2023, and thereafter presented Finance (Supplementary) Bill, 2023 in both Houses on February 15, 2023.

Finance Supplementary Bill 2023:

Salient features of the taxation measures are as under:

Amendments to the Sales Tax Act 1990:

The following amendments proposed to made to the Sales Tax Act 1990:

  • Sales tax on general items has been increased to 18 percent from 17 percent. Increasing the general sales rate from 17% to 18% on goods imported or locally sold, other than those subject to sales tax at retail price (Third Schedule items). The SRO issued will be applicable from February 14, 2023.
  • Increase the general sales tax rate from 17% to 18% for Third Schedule items.
  • Essential items (Wheat Flour, rice, egg, milk, chicken and vegetable) are exempted.
  • Sales tax on locally produced coal increased to 18 per cent or PkR700/ton, whichever is higher (previously higher of 17 per cent or PkR700/ton).
  • Sales tax applicable on import of cellular mobile phones in CBU form proposed to increase as under:
See also  Karachi Tax Bar Association (KTBA) rejected using mobile phone SMS as a legal way to serve tax notices
ValueExisting RateProposed Rate
(i) Exceeding US$ 200 but not exceeding US$ 35017%18%
(ii) Exceeding US$ 350 but not exceeding US$ 50017%18%
(iii) Exceeding US$ 50017%25%

Amendments to the Income Tax Ordinance 2001:

The following amendments proposed to made to the Income Tax Ordinance 2001:

  • On the acquisition of capital assets, a 10 per cent advance tax will be applicable on the gross amount of the purchase consideration. In our view this does not apply to transactions carried out at the PSX.
  • A 10 percent advance tax will be applicable on all functions and gatherings including wedding events and seminars. Advance tax on function and gatherings has been re-introduced, which was earlier omitted through Finance Act, 2020.

Amendments to the Federal Excise Act:

The following amendments proposed to made to the Federal Excise Act:

  • FED on aerated water proposed to increase to 20 per cent from 13 per cent.
  • FED increased on locally produced cigarettes.
  • Locally produced cigarettes if their on-pack printed retail price exceeds PkR9,000 (from PkR6,660) per 1000 cigarettes to PkR16,500 (from PkR6,500).
  • Locally produced cigarettes if their on-pack printed retail price does not exceed PkR9,000 (from PkR6,660) per 1000 cigarettes to PkR5,050 (from PkR2,050).
  • Minimum price on cigarettes: No brand shall be priced and sold at a retail price (excluding sales tax) lower than 60 per cent (previously 45 per cent) of the retail price.
  • FED on Sugary drinks introduced at 10 per cent of retail price.
  • FED increased on cement to PkR2.0/kg (previously PkR1.5/kg).
  • FED on air travel (club, business and first class) increased to 20 percent of the airfare or PkR50,000/ticket, whichever is higher from the earlier held PkR50,000/ticket.
See also  Deadline for Digital Mode of Payments Proposed to further extend
Newsletter
Subscribe Now

Sign up for  Daily Digest and get the best of News for you.

[contact-form-7 id="11414" title="Contact form 1"]

Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: