Finance Minister of Pakistan Asad Umar presented the “Economic Reform Package”, during his speech he said that the country is facing economic crises but the government will keep the measures to boost the country towards developed nations.
Key Take aways of Economic Reform Package with budget papers;
Tax on income from loans to SME sector to be reduced to 20%
Agricultural tax will be dropped to 20 per cent.
To provide low-income housing, loans will be decreased to 20 per cent. Rs5 billion revolving fund will be introduced.
Withholding tax for filers on banking transactions will be eliminated to encourage the culture of paying taxes.
Non-fillers will be able to purchase small and mid-size cars up to 1300CC, but the tax would be increased.
Tax has been decreased to Rs5000 for small wedding halls up to 500 square feet.
Pilot scheme to be introduced in Islamabad to facilitate traders in filing and paying taxes.
Duty on import of newsprint eliminated.
Special economic zones have been formed keeping in mind the interest of CPEC.
In the next 5 years, those working to produce products for renewable energy will be exempt from sales tax and customs duty.
No tax on bids for sports franchises until profitability.
From July 1 super tax will be eliminated for non-banking companies.
Continuation of 1pc per annum reduction in corporate income tax.
Tax will be increased for vehicles over 1800CC
Tax for low priced phones will be decreased, will remain the same for expensive phones.
Scheme to be introduced of promissory notes for exporters. Any exporter will be able to take loans from banks on these notes.
Duty on diesel engines for agricultural purposes decreased to five per cent.