Friday, June 09, 2023
ISLAMABAD: After the budget was unveiled by Finance Minister Ishaq Dar, Federal Board of Revenue (FBR) Chairman Asim Ahmad explained that the tax collection target for his organisation has been set at Rs9,200 billion after it was increased by Rs200 billion.
Explaining the revenue targets in the proposed budget, Ahmad said additional taxes of Rs200 billion have been imposed in the upcoming budget.
“Direct taxes of Rs175 billion have been proposed and indirect taxes of Rs25 billion have been suggested,” said the FBR chief. He added that withholding tax on the use of debit and credit cards for foreign payments has also been increased.
“An additional Rs170 billion will be received in the form of income tax,” said the FBR chairman, adding that tax measures worth Rs22 billion have been included under the sales tax.
For overseas Pakistanis, the FBR chairman shared that the 2% tax on the purchase of immovable property through remittance is being abolished. He also added that a new diamond card is being launched in the remittance card category.
“Diamond card will be issued to those who send remittances of more than $50,000 annually,” the FBR chief said.
The government has suggested imposing a 10% withholding tax will on non-filers if they debit and credit cards on foreign payments, while a 5% tax will be levied on filers.
The government has also proposed to restore a 0.6% withholding tax on non-filers on cash withdrawals from banks
Ahmad also said that the budget also proposes an advance adjustment tax of Rs 200,000 per annum on foreign domestic workers. “POS tax on branded textiles, leather retailers has been suggested to be increased from 12 to 15%. While POS tax on sports goods retailers has proposed to be increased from 12% to 15%.”
He also added that in the document the government has proposed the lifting of the limit on the import of Asian vehicles of more than 1300 cc.
Meanwhile, an FBR official present in the press conference said that the government has also imposed a tax of Rs2,000 per fan. While a 20% duty has also been proposed on the use of old bulbs.
FBR’s Member Policy shared that the exports of the IT sector are a priority of the government and in line with that, the general sales tax on IT services has been reduced from 15% to 5%.
The official also shared that the tax rate has been reduced in the construction sector
“Will give business opportunities to youth. Youth below 30 years of age will be given tax exemption for starting a business,” shared the official. He also added that tax exemption is being given in the agriculture sector.