ISLAMABAD: Finance Minister Miftah Ismail announced changes to direct and indirect taxes for the fiscal year 2022-23.
Details of the direct and indirect taxes as well as tax breaks to different sectors can be view below.
DIRECT TAX:
-Tax rebate for five years to New cinemas, production houses, film museums and 10 years for film and drama export.
-Income Tax exemption to Cinemas and producers
– Exemption of 8% withholding tax to film producers and distributors
– 0% sales tax and customs duty on import of film equipment
– Taxable salary threshold increased from 600,000 to 1,200,000
– Taxable threshold for AOPs and business individuals increased from 400,000 to 600,000
– Tax rate on income from behboob certificates reduced from 10% to 5%
– Fixed tax introduced for small retailers ranging from Rs. 3000 to 10,000 which will be collected through Electricity bills which will be full and final tax liability.
– Initial depreciation rate increased from 50% to 100%
– Tax collected at import stage made adjustable rental income on second property having value more than Rs. 25,000,000.
– Advance tax will be 2% of value in case of electric vehicles
– Advance tax for non-filers increased from 100% to 200%
– Windfall gain tax on banking companies increased from 39% to 42%
– Any citizen who is not resident in any country will be considered resident of Pakistan
-Advance income tax of 1% on foreign transactions through debit/credit/prepaid card while 2% will be collected from non filers.
INDIRECT TAX:
– Sales tax exemption on import and supply of solar panels
– 0% sales tax on agricultural machinery and seeds
– Sales tax exemption on electricity and local supplies to Non-profit hospitals having 50 beds or more
– Revamped a taxpayer friendly ADRC for tax demands of 100 million or more. – 0% Customs duty on agricultural related machinery
