ISLAMABAD – Finance Minister Asad Umar on Wednesday presented Pakistan Tehreek-e-Insaf-led government’s second mini-budget for the current fiscal year.
Finance Minister Asad Umar on Wednesday presented the Finance Supplementary Second Amendment Bill, 2019, also known as the mini-budget, in the National Assembly amid huge shouts from the opposition.
The minister said and clarified, “this is not a new budget. We want to ensure that this is the last IMF programme the government has to take”.
- Non-filers allowed to purchase of cars up to 1300cc
- Non-filers can purchase a house worth 0.5 million (50 lac)
- Tax on income from loans to the SME sector to be reduced to 20%
- Agricultural tax will be dropped to 20 per cent.
- To provide low-income housing, loans will be decreased to 20 per cent. Rs5 billion revolving funds will be introduced.
- Withholding tax for filers on banking transactions will be eliminated to encourage the culture of paying taxes.
- Tax has been decreased to Rs5,000 for small wedding halls up to 500 square feet.
- Duty on import of newsprint eliminated.
- Special economic zones have been formed keeping in mind the interest of CPEC.
- In the next 5 years, those working to produce products for renewable energy will be exempt from sales tax and customs duty.
- No tax on bids for sports franchises until profitability.
- From July 1 super tax will be eliminated for non-banking companies.
- Taxes on cheaper mobile phones to be decreased.
- Tax for small marriage lawns decreased to Rs 5,000 from Rs 20,000
- Revolving credit of PKR5bn for Home Developers.
The budget:
Non-filers (a person or corporation who does not file a tax return) can now buy cars with engine capacity of 1300cc and below. This means they can now buy any cars from Suzuki Wagon R to Honda City and Swift.
Earlier, non-filers were not allowed to buy new cars. Motorcycles and rickshaws were an exception because buyers of these automobiles belong to lower income groups. The minister said the tax rate on cars is being increased but didn’t mention the actual increase.
In the new budget, the govt has reimposed tax on mobile cards. You will only get Rs70 worth of credit on every Rs100 top-up.
The Supreme Court had barred the government from deducting any tax on mobile phone pre-paid cards. The SC order allowed users to consume Rs100 credit in its entirety with no tax on phone calls or text messages. The government has approved a 30% tax on mobile phone cards.
The government has abolished the minimum withholding tax on banking transactions and withdrawals exceeding Rs50,000 for filers.
PSL tickets may be cheaper this year as the government exempts all sports franchises from taxes with effect from July 1.
