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HomeWorldPakistanBudget 2022-23: Rs 450 billion. new taxation steps general with EVENINGS

Budget 2022-23: Rs 450 billion. new taxation steps general with EVENINGS

ISLAMABAD: Federal Council of Revenue (FBR) shared the details of in new tax measures of Rs 400-450 billion including proposed plan on Personal income tax reforms to be included in finance Bill 2022, with Prime Minister Shahbaz Sharif on Saturday.

Sources said business recorder On Saturday, Finance Minister Miftah Ismail, FBR Chairman Asim Ahmed and his team of budget manufacturers, including the FBR member’s internal revenue policy met Prime Minister Shehbaz Sharif in Lahore. On Saturday, the tax authorities traveled to Lahore to brief Prime Minister Shehbaz Sharif on the completion of new budget suggestions with new tax measures in accordance with of 400-450 billion rupees for in next fiscal year. initial sketch of budget proposals were discussed in Details during the meeting with prime minister in Lahore.

– These are the proposed measures

  • Number of plates of hired class was proposed to be reduced to six

  • No matter what changes in tax rates of hired salary drawing class up up to 0.1 million rupees

  • Slight growth expected for employees within range of from 0.1 to 0.2 million rupees per month

  • More raise in income tax rate expected for employees earning wages above 0.2 million rupees per month.

  • It is proposed to charge an urgent fee or additional income tax on annual income/profit earned steel sector, pharmaceutical industry and other profitable sectors and also raise the minimum tax from two to six percent on import of edible oil in in budget (2022-23)

  • The government is considering increasing rate of minimum tax from two to six percent on import of edible oil in in next fiscal budget

  • The 2022 Finance Bill is expected to introduce new concept of tax, i.e. “contingency fee” in Income Tax Ordinance 2001 for special taxation of potential sectors making extraordinary profits but not contributing amount of taxes

The tax authorities discussed in detail strategy including enforcement and administrative measures to reach the revenue collection target of Rs 7.2 trillion. for 2022-23. However, the Prime Minister instructed the FBR to fulfill the obligation. of the present government provide a favorable and friendly environment businessmen, ease of makes business job creation, export promotion and economic growth of country.

Sharing our plan on Personal income tax reforms, the FBR reportedly informed the prime minister that the number of plates of hired class was proposed to be reduced to six. It was suggested that there be no change in tax rates of hired salary drawing class up up to 0.1 million rubles Slight growth expected for employees within range of from 0.1 to 0.2 million rupees per month and more lift up in income tax rate expected for persons earning wages above 0.2 million rupees per month.

Growth is unlikely to exceed 3% in FY23: Economist

According to sources, the tax proposals for these profitable industries help in budget markers to prevent possible high taxes on different plates of hired class. There are 1.9 million hired taxpayers. demand is to get an additional 80 billion rupees from the salaried class, earning between 1 and 6 million rupees a year.

Around 70 percent of salaried taxpayers hit the slabs of from 1 to 6 million rubles for year. FBR will go to any lengths to avoid this measure of high taxes on hired class, except for those who receive very high salaries. Main chunk of higher it is expected that the tax received from the salaried class will be covered by taxation of highly profitable industries in coming budget.

The tax authorities have informed the Prime Minister that it is proposed to levy an urgent fee or additional income tax. on annual income/profit earned steel sector, pharmaceutical industry and other profitable sectors and also raise the minimum tax from two to six percent on import of edible oil in in budget (2022-23).

government is considering increasing rate of minimum tax from two to six percent on import of edible oil in in next fiscal budget increase the incidence of tax on this highly profitable sector. new tax is expected on sectors and industries that generate huge profits, and this will be imposed for limited period.

The 2022 Finance Bill is expected to new concept of tax, i.e. “contingency fee” in Income Tax Ordinance 2001 for special taxation of potential sectors making extraordinary profits but not contributing amount of taxes. FBR will levy a “contingency fee” on sectors making extraordinary profits during last some years. The “contingency fee” will be a separate tax and will be collected along with with income tax levied on each year. “Contingency fee” will be collected on annually at that time of payment of tax by potential sectors on innings of income tax returns, sources added.

Copyright © 2022 Business Recorder.

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Derrick Santistevan
Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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