ISLAMABAD: The Federal Board of Revenue (FBR) has got almost all the tax and revenue related budgetary proposals approved from the parliament. Now those proposals are going to be passed along with the budget for the fiscal year 2018-19.
Sources at FBR told Customs Today that on the recommendations of the FBR, the Upper House of the Parliament had endorsed almost all the recommendations received from the FBR.
“Increasing petroleum development levy to 25% of the existing rates, increasing regulatory duty on fish fillet and frozen fish from 45% to 60% and proposed health levy of Rs 10 per kg on the sale of tobacco leaf and large number of other tax and revenue related proposals have been endorsed by the Finance Ministry” the source said adding that with the approval of those proposals, FBR would definitely be in a position to meet the challenging revenue collection target for the upcoming fiscal year.
To a question about some other proposals moved by the FBR and approved and referred by the Senate to National Assembly for incorporation in the budget, the source said that tax rates of individuals under the slab of Rs1,200,000 to Rs2,400,000 would be increased to 10%, slab for Rs.2,400,000 to Rs4,800,000 the tax rate be increased to 15%o and the slab for Rs 4,800,000 and above be increased by 25%.
Similarly, the source said that in order to protect the dairy sector tariff on import of Skimmed Milk Powder (SMP) would be increased from 45%o to 50% and in order to encourage the fishery sector exemption in GST on the import of fish babies/seedlings would also be announced.
“Concessions given on agricultural machinery during Budget 2016-11 under S.No.1 of 5fi Schedule to the Customs Act, 1969 will continue for the next fiscal year” the source said adding that in order to encourage the use of solar energy, interest free loans would be introduced for the installation of Solar Tube wells for farmers owning up to 12 acres of land.
Furthermore, the source said that due course of discussion, FBR had also received some strong recommendations from the Senate like Senators proposed measure for the encouragement of taxpayers and according VIP status and wards to the first 5000 taxpayers at national events,” the source maintained saying that withdrawal of advanced tax and sales tax on mobile phone cards of Rs100/ along with spending the collected money on health sector was also another recommendation of the Senate.
“The adjustment of input on raw material should not be allowed and final tax should be collected at the import stage on potassium chlorate whereas 17% sales tax along with additional tax (reasonable balancing amount) should be charged and also no adjustment of sales tax on other raw material be allowed and the final product i.e. match boxes should be exempted” the source added.
