LAHORE: Punjab government proposed to impose new taxes and duties on various items in the provincial budget 2016-17 and withdraw some others.
According to the finance bill, the government has proposed to withdraw entertainment tax on magic and public shows.
The government will also rationalize vehicle registration fee and taxpayers will be allowed to pay in lump sum or through periodic payments.
The government is levying tax on imported cars above 1300CC with effect from July 1, 2016. The rate of tax shall be different for different categories of the cars.
To rationalize levy of taxes on power of attorney, it is proposed that stamp duty @ 2 pc may be levied and capital value tax on power of attorney may be abolished.
In order to plug compliance gap arising out of the diversities of service tax tariff interpretation, description of a few taxable services has been made consistent with their definition provided in the relevant rules so that any ambiguity is removed and taxpayers have a clearer understanding of their tax obligation. Besides three new services have been included under the tax net
In order to safeguard the public revenue, it is proposed that Article 63-A of Schedule-I of the Stamp Act, 1899 meant for transfer of a right of interest relating to an immoveable property may be inserted in Section 7-A.
The government intends to levey property tax on vacant plot in order to increase tax base of the property tax, check speculative trade of real estate and improve supply of housing . The tax will be imposed after two years of delivery of procession to the owner.
