• Tuesday, August 20, 2019

New taxes expected in coming budget

Discussion in 'Pakistan Economy' started by Yaseen1, Jun 8, 2019.

  1. Yaseen1

    Yaseen1 SENIOR MEMBER

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    Some highlights of new taxes !

    1) Unregistered industrial / commercial entities (not having STRN) having electricity / gas bill amount in excess of Rs 20,000 per month, extra sales tax would be increased from 5% to 20%

    2) Residential consumers be made liable to provide NTN in case electricity bill amount exceeds Rs 1.2 million per year or levy advance income tax withholding of 20%.

    3) All exemptions (like exemption on agricultural income) under the Income Tax Law should only be made available to filers so that exempt income is also reported and wealth is reconciled with income reported in the return.

    4) Withholding tax on International business class tickets under section 236L is same Rs 16,000 for filer and non-filer, it would be increased to Rs 50,000 for non-filers.

    5) Withholding income tax on interest income u/s 151 is 10% for filer and 17.5% for non-filer. Rate would be increased to 30% for non-filers.

    6) Annual private motor vehicle tax u/s 234 for non-filers is Rs 30,000 for 2000 CC and above. Rate for non-filers would be increased to Rs 200,000 for 2000 CC and above.

    7) Rate of income tax on Filer as well as Non-Filer Commercial / industrial connections of electricity is 12% and 5% respectively. Rate of tax for Non Filer Commercial / industrial connections would be increased to 25%

    8) At present, 12% WHT is being collected from owners of marriage halls on their electricity bills, which does not represent actual tax on their income. Moreover, the same is somehow minimized through use of generators. In order to avoid this, Capacity Tax would be imposed on marriage halls on the basis of per square feet coverage area.
    List of registered Marriage halls paying capacity tax on per square foot basis would be on internet and accessible to all so that it can easily be identified who is not on the list thereby forcing them to get themselves register and pay tax.

    9) Tax on capital gain on disposal of shares of Listed Company is 15% for Filers and 20% for Non-Filers. Rate of tax for Non-Filers would be increased to 30%

    10) List of top 100 restaurants registered in Federal / Provincial sales tax with the amount of tax paid, would be on internet accessible to all so that famous busy restaurants who are not on this list or on bottom of the list are induced not to embarrass themselves by declaring low sales.
    Lottery system be introduced for invoice collected by customers of restaurants and uploaded on designated website. Moreover, invoices submitted by customers should be cross checked with invoices reported by restaurants in their monthly sales tax return.

    11) Advance tax 1% and 2% is collected from filer and non-filers respectively on sale of immovable property. For sale of land above 250 square yards, rate of advance tax would be increased to 10%

    12) In addition to above referred tax, the real estate constructors should pay additional withholding tax when they get the constructed property registered in the name of buyers of their constructed property. This would be inline with withholding taxes imposed on industries on transactions executed by them.

    12) Purchase of land (above specified limit) is only allowed by filers, however, holding of land and its sale by non-filers is still allowed. Holding of land by non-filers should be made more expensive by asking authorities collecting property tax (cantonment boards / societies / registrar) to collect adjustable advance income tax, from non-Filers, on behalf of the Federal Government as follows:

    a) Rs 500,000 per year for 800 yards or more but less than 1800 yards.
    b) Rs 1 million per year for 1800 yards and above.
    c) So that such property comes for sale.

    13) Currently, advance income tax on international travel is being collected as follows, which would be increased as follows:
    a) First / Executive class – Rs 16,000 be increased to Rs 35,000 for Non-Filers
    b) Other excluding Economy class - Rs 12,000 be increased to Rs 20,000 for Non-Filers
    c) Economy class – No tax is being collected on economy class tickets. To allow data mining, marginal withholding tax (say Rs 200 - 500) would be imposed on Non-Filers just to gather data of frequent travelers.

    14) mobile phone connection should only be available to Filers per CNIC
     
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  2. Peaceful Civilian

    Peaceful Civilian ELITE MEMBER

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    We should increase tax net, Decrease import and need to increase exports . Hope in this budget we don't increase salary & pension. No need to put more Burden on economy. We together need to bear 3 or 4 difficult year then we have bright future.
     
  3. Lagay Raho

    Lagay Raho FULL MEMBER

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    jo bhi hy 10% FED on local cars should be removed for 1700+ cc cars!! its killing the local market :(
     
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  4. Mahmood-ur-Rehman

    Mahmood-ur-Rehman FULL MEMBER

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    We should adopt no import no export model of economy if possible and should be self sufficient means we should not produce extra wheat cotton sugar cane but should produce Oil producing seeds Tea rubber plant if possible shift the industry from producing only cotton product to Mobile PCs computers and machinery we need
     
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  5. waqasmwi

    waqasmwi FULL MEMBER

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    Researchers and teachers rebate of 40% should be discontinued. I have seen people getting researchers rebate who don't even know what is meant by Research.
     
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  6. shah_123

    shah_123 FULL MEMBER

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    This is a big LOL, who is the stupid who proposed this?

    There are millions of users who have mobile phone connections who don't fall under the tax net due to low income. ----
     
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  7. Jf Thunder

    Jf Thunder ELITE MEMBER

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    source for this?
     
  8. Yaseen1

    Yaseen1 SENIOR MEMBER

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    read this post on facebook group of CA students
     
  9. Sugarcane

    Sugarcane ELITE MEMBER

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    Good suggestion, but looks like a wish list.

    Low income doesn't mean you shouldn't file tax return (although it's not mandatory as per current law). I file tax returns of my Wife who is housewife.
     
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  10. IceCold

    IceCold PDF VETERAN

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    There is nothing stupid about it. Becoming a filer does not mean you have to pay taxes if you belong to low income, it means becoming part of the system. If you are low income you can simply submit zero tax return.
     
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  11. shah_123

    shah_123 FULL MEMBER

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    There is everything stupid about it.---- millions of labor class, having mobile connection, with low income are under no obligation to file tax return -- And you really think that labor class and those reri walas have enough education to file a return?

    I don't know if this proposal is true or not, but this govt must get serious and instead of such stupid proposals (if true) and going after beauty parlors run mostly by middle class women, they must bring the rich elite and mafias like lawyers in tax net. ---- lawyers openly denounce this filing of return ---

    If not mandatory, than why go into the hassle of filing return and facing corrupt fbr.
    fine you can file, but remember there's a world outside big cities of Pakistan, they are mostly uneducated.
     
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  12. IceCold

    IceCold PDF VETERAN

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    Again! first educate yourself on the matter related to taxation before arguing for the sake of it. Those rehri walas and so called labour class is actually making more fuckin money than an MBA doing 9 to 5 job. For e.g masion is earning 1500 per day and these guys dont do holidays so imagine you work for 26 days makes you 39000 but you are not paying any taxes why because Labour ha....why? Where as an average degree holder doing a job of 35000 is paying tax. Why?
    And being educated or not educated has nothing to do with filing your tax return. Even educated guys dont file their tax returns on their own, there are people for that.
    What the government however needs to do is to provide assistance to such class to facilitate them.
    But whoever earns by whatever means irrespective of which class needs to be part of the system so that everything can be traced.
     
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  13. Yaseen1

    Yaseen1 SENIOR MEMBER

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    many people file returns by providing false details which cannot be verified.I think instead of forcing people to become filer we should educate ethics to them in our schools and universities so they pay taxes voluntarily and
    govt should rebuild confidence of public through conduct and performance which will promote people to pay taxes
     
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  14. MUSTAKSHAF

    MUSTAKSHAF SENIOR MEMBER

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    You must know that Labour class has to see up's and down's daily,there are months in which they hardly get any work.
    Mason isn't employed around the year.If they get 1500 on day for 30 days,chances are next month there won't be anything.
     
    Last edited: Jun 8, 2019
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  15. Sugarcane

    Sugarcane ELITE MEMBER

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    The flawed law which needs to be fixed and tax filing should be made mandatory for every adult, because telling details of your income and assets is the way to prove that you don't fall in tax bracket. As of now, less than 1% file tax returns, so nobody care about their voices against corrupt fbr as they are minority. When majority will be filing returns, then concerns of majority against fbr can't be ignored.

    Being uneducated isn't excuse of not filing return, However uneducated people should demand government to facilitate them in filing returns.
     
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