News
Saturday, May 25, 2013
Bid to present ‘mini-budget’ ‘fails’; no ordinance in sightStaff Report
ISLAMABAD: The Federal Board of Revenue’s (FBR) quest to get implemented mid-year tax measures (mini budget) through a presidential ordinance has met failure, as the presidential ordinance has not been issued.
After vetting by the Law Ministry the FBR had forwarded the proposed draft of the ordinance to caretaker prime minister a week ago and expected the presidential ordinance to be promulgated on Thursday. However, after completion of working hours on Friday, FBR authorities lost hope that the ordinance will be promulgated. According to the authorities, they have started normal budget-making process and it would be finalised for presentation in the National Assembly in its budget session, official sources said.
In the draft the government has proposed to revise almost entire withholding tax (WHT) regime and raise customs duty from zero to 1.0 percent on the import of 284 items through the Tax Laws (Amendment) Ordinance, 2013 to be issued for generating additional revenue at the import stage. The proposed Tax Laws (Amendment) Ordinance, 2013 has faced roadblock due to heavy criticism. The board has proposed to increase standard rate of sales tax from 16 percent to 17 percent and imposing 2.0 percent ‘further tax’ on supplies to unregistered persons, 17 percent sales tax on sugar and proposed imposition of 10 percent WHT on domestic electricity consumers whose monthly electricity consumption exceeding 1,000 units.
Courtesy www.dailytimes.com.pk