Summary Notifies measures being taken by govt to facilitate the agricultural, real-estate and other sectors
(Web Desk) – Finance Minister Miftah Ismail on Tuesday while giving his closing remarks to the assembly notified of numerous measures currently being taken by the government to facilitate the agricultural, real-estate, business and other sectors.
Addressing the assembly today, Miftah Ismail informed lawmakers that the government was preparing a new export package and was currently mulling the plans to announce the said package soon.
He said that over the course of last two months, exports have risen sharply and economic growth has also picked momentum, adding that, “Agriculture sector recorded a growth of 3.8 percent,” mentioning “new fiscal measures currently in the works to be announced soon for the agricultural sector.”
The minister highlighted the reduction of Sales Tax on Urea by 2 percent, and promotion of Gypsum for agricultural lands. Mentioning the specifics of the incumbent projects, he said that farmers holding 12.5 acres would be eligible to get a subsidy of Rs2,000 per acre using gypsum.
Ismail estimated that with the launch of new initiatives, small farmers would be able to increase yields on their farmlands and also informed the members that “farmers are to get one year or more time if they fail to make overdue electricity payment.”
He said that tax rate on small companies will be reduced to 20 percent from 25 percent, also ensuring that “each year tax rate will be reduced by one percent”.
“Government is proposing minimum tax for importers,” Miftah Ismail said and added with these new taxes, commercial importers would benefit the most from these measures.
He also said: “The tax rate will be six percent but minimum tax rate will be five percent, also highlighting that “those importers earning less profit will pay less tax.”
He said that current LNG import tax rate is at six percent, whereas, government was proposing a tax rate of one percent to all LNG importers, but said that other than PSO and Pakistan LNG two companies provided with sales tax facility – any company importing LNG will have to pay sales tax at the rate of 12 percent.
He said: “Builders to construct small homes having price tag of Rs2.5 million would be eligible for tax rebates; tax rebates of 50 percent has been proposed for the builders of small homes.”
Miftah also mentioned that, non-filers would now be able to purchase property up worth Rs5 million. Contrary to the announcement in budget, in which, non-filers were prohibited to buy property exceeding worth Rs4 million.
