ISLAMABAD: The government on Friday proposed tax relief measures worth Rs 32.47 billion for the upcoming fiscal year 2017-18.
Addressing a press briefing here, Chairman Federal Board of Revenue, Dr Muhammaed Irshaad informed that the government has proposed new additional revenue measures worth Rs 120 billion for the fiscal year 2017-18, and the net revenue impact after deducting the relief measurers would be Rs 87.53 billion.
Giving breakup of the figures, the chairman said in custom tax, Rs 20 billion new tax measures had been proposed while Rs 1.15 billion relief measures had been proposed by the government. The net revenue impact in custom duty would be Rs 18.9 billion, he added.
“In sales tax, the total revenue impact has been set at Rs 33.865 billion as the government proposes Rs 18.735 billion tax relief measures while Rs 52.6 billion additional tax measures”, he added.
Similarly, the government has proposed Rs 47.35 billion new tax measures whereas it has also given tax relief worth of Rs 12.587 billion. Consequently, the total income tax revenue would be Rs 35 billion.
He said during the proposed budget, the government has announced the highest ever relief measures to facilitate specially poor segment of the society.
The non-filers were taxed heavily by increasing their cost of business to increase tax filers, he added Dr Irshaad said for the first time, the government has taken several measures to protect the local industry by reducing taxes on import of raw material.
Meanwhile, according to the budgetary documents, the government has proposed to reduce duty from 11 per cent to 3 per cent and removal of regularly duty on grandparent and parent stock of chicken, whereas duty on import of hatching eggs has also been reduced from 11 per cent to 3 per cent.
The government has also proposed to reduce regulatory duty on aluminum waste or scrap from 10 per cent to 5 per cent whereas 3 per cent custom duty on skins and hides have also been proposed to be exempted.
Similarly, custom duty on stamping foils has also been exempted while custom duty on sheets for veneering has been slashed from 16 per cent to 11 per cent.
The government has proposed measures for protection of local industry including levelling regulatory duty of 5 per cent on import of synthetic filament yarn, increase of custom duty on aluminum beverages cans from 11 per cent to 20 per cent, reduction of custom duty on uncoated polyester film and aluminum wire from 20 per cent to 11 per cent for manufacturers of metalized yarn and reduction of custom duty on raw materials for manufacturers of baby diapers. Similarly income tax rate for corporate sector has been reduced from 31 per cent to 30 per cent for tax year 2018. Similarly rate of withholding income tax for mobile phone subscribers is being reduced from 14 per cent to 12.5 per cent.
