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May 26 , 2017

Budget 2017-18 at a glance

ISLAMABAD: Following are the highlights National Budget 2017-18, announced by Minister for Finance, Muhammad Ishaq Dar in the National Assembly on Friday:

INCOME TAX

RELIEF MEASURES: Suitable income tax ratio for corporate sector with target of 30 percent

-- Reduction in withholding tax on registration of vehicles from Rs 10,000 to Rs 7,000 (850 cc), Rs 20,000 to Rs 15,000 (upto 1000 cc) and Rs 30,000 to Rs 25,000 (upto 1300 cc)

-- No withholding tax for vehicles bought under PM's Youth Loan Programme.

-- Advance tax limit increased from Rs 0.5 to one million rupees- Right of appeal on non-filing of income tax returns.

-- Increase in exemption limit on insurance premium to Rs 0.3 million

-- Tax exemption for Gulab Devi Hospital, Poverty Alleviation Fund and National Academy of Performing Arts

REVENUE MEASURES: Increase of dividend in tax ratio from 12.5 to 15 percent

-- Increase in minimum tax ratio on turn over from one to 1.25 percent- 5 percent withholding tax on tobacco cess- Reverting fixed tax per unit on builders and developers

SALES TAX AND FEDERAL EXCISE DUTY

RELIEF MEASURES: Termination of 2 percent increased tax on lubricating oil

-- Decrease in sales tax on imported hybrid electric cars - Sales tax exemption on premixes to stop stunting

-- Ending sales tax, withholding tax on supplies among registered persons, however remains same on supplies to government departments.

-- Decrease in sales tax on poultry machinery from 17 to 7 percent- Decrease in sales tax on multi-media projectors from 17 to 10 percent.

REVENUE MEASURES: Increase in Federal Excise Duty on cement to Rs 1.25 per kilogram

-- Increase in sales tax upto 6 percent on commercial import of cloth - Increase in FED on cigarettes

-- Increase of cost of electricity for Steel sector from Rs 9 to Rs 10.5 per unit

CUSTOMS

Relief for agriculture and poultry farming sector: Ending 5 percent regulatory duty on import of grandparent and parent stock of chicken

-- Reduction of custom duty from 11 to 5 percent

-- Reduction of custom duty on hatching eggs from 11 to 3 percent

-- Exemption on custom duty on import of ostrich

Relief for health sector: a) Reduction of custom duty from 20 to 3 percent on import of pre-fabricated clean rooms

b) Reduction of custom duty from 16 to 5 percent on surgical gown and bandage

c) Duty free import of machinery, equipment, appliances wheel-chairs, surgical dental furniture and spares for Armed Forces' hospitals, Fauji Foundation and Pakistan Atomic Energy Commission similar to the already federal and provincial medical set-ups

d) 20 percent custom duty on electric cigarettes

-- Increase in regulatory duty on Paan and Chhalia from 10 to 25 percent

-- Reduction of custom duty on baby diapers from 16 to 11 percent

-- Reduction on custom duty from 16 to 11 percent on Veneer sheets

Extension in 11 percent concessional ratio on sales tax of set top boxes, tv broadcast transmitters and reception apparatus upto June.

 

Courtesy www.thenews.com.pk

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