ISLAMABAD: Federal Board of Revenue (FBR) is going to propose some new steps for broadening the tax base through Finance Bill 2017, which would be presented on May 26.
The FBR’s budget recommendations may include:
- Change in FBR’s valuation of immovable property, which was announced last year after consultation with stakeholders. Around 20-25 percent increase in existing valuation table is likely. The enhancement of valuation will reduce gap between official FBR’s property valuation and open market values.
- Enhancing the scope of regulatory duty on import of luxury and unnecessary goods for discouraging imports of such goods. This will help increase in revenue.
- Tax relaxation for Islamic banking system.
- Super tax likely to continue.
- Reduction in corporate tax rate.
- Misuse of zero-rate sales tax on kerosene oil. The FBR may recommend 17 percent sales tax on this key petroleum product.
- Widening of scope for imposing withholding tax regime on non-filers. Facilitation to taxpayers on Active Taxpayers List.
- Enhancement of withholding tax on withdrawal of cash from banking companies.
- Facilitation to salaried taxpayers. Increase in threshold for salary persons.
- Imposition of advance tax on international air ticket purchased for economy class. The adjustable advance tax already imposed on international air tickets for executive and business class.
