Summary Finance Minister Ishaq Dar says those who are not paying tax will be brought into tax net.
ISLAMABAD (Web Desk) - Finance Minister Ishaque Dar said that no new tax is being imposed in the next financial year and it has been proposed in the next budget to decrease corporate tax by one percent each year.
Referring to tax proposals‚ the Finance Minister said being a nation we will have to take decisions to help make Pakistan self-reliant through off-loading debt and concentration of national economic priorities.
He said the government has decided to not to impose any new tax on those who are already paying their share of tax.
However‚ those who are not paying tax will be brought into tax net and for this purpose new tax reforms will be introduced. He said capacity of tax machinery will be enhanced by making tax system easy and expand its scope.
Steps will also be taken to overcome corruption and facilitate tax payers.
Ishaque Dar said it has been proposed in the next budget to decrease corporate tax by 1 percent each year and bring it to 30 percent in the next five years from the existing thirty-five percent. He said tax exemption in special economic zones will be extended upto 10 years.
Dar said two percent adjustable withholding tax has been proposed on the function held in hotels‚ clubs‚ marriage halls and restaurants. He said minimum tax rate is being enhanced from 0.5 percent to one percent of the annual income.
He said tax system for salaried persons is being rationalised according to the salaries they receive. He said to rationalise tax on the business persons two slabs are being created under which tax rate from 25 percent will be increased upto 35 percent on the income of six million rupees.
New ratio of withholding tax on business imports agreements supplies and services is being imposed to promote corporatization.
To ensure receipt of agriculture tax‚ it has been proposed that agriculture credit will only be issued to those growers who pay provincial agriculture tax.
He said 5 percent additional sales tax is proposed to impose on unregistered industrial and commercial electricity connections.
Ishaq Dar said to overcome revenue shortage it is proposed to increase stranded rate of sales tax from sixteen to seventeen percent.
