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The Pakistani government on Saturday extended exemptions in specific sectors while announcing new tax measures in several areas to generate additional revenue in the coming fiscal year to meet the International Monetary Fund's criteria.
Pakistan's Finance Minister, announced the new measures in the National Assembly. These include introducing a capital value tax on property in Islamabad and implementing new tax measures on builders and developers, Pakistan's local daily, Dawn reported. In an amendment to Finance Bill 2024, which was presented to the National Assembly on June 12, the government reduced the Petroleum Development Levy (PDL) on diesel and petrol from Pakistani Rupees (PKR) 80 to PKR 70 per litre but increased it from the existing PKR 60. The Federal Excise Duty (FED) rates have been raised from PKR 5,000 to PKR 12,500, representing a 150% increase for economy and economy-plus foreign travel tickets. The tax rates for other classes were raised by 40pc. The new rates will take effect from July 1. Despite opposition, exporters will pay the standard corporate tax rate of 29pc and a super tax where applicable. This is a significant change from the previous 1pc tax on export turnover, as per Dawn reports. Individuals (salaried and non-salaried) and associations of persons earning over PKR 10m per year will be subject to a 10pc surcharge on their income tax. The scope of exemption on sales or transfer of immovable property is further widened to include a war-wounded person while in service of Pakistan Armed Forces or Federal or Provincial Government or an ex-serviceman and serving personnel of armed forces or ex-employees or serving personnel of federal and provincial government, Dawn reported. In a deep economic crisis, Pakistan's parliament on Friday passed a tax-heavy finance bill for the upcoming fiscal year amid ongoing negotiations for a new International Monetary Fund (IMF) bailout. (ANI)
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