KARACHI – Pakistani federal government presented its maiden budget with a focus on securing a substantial IMF bailout through aggressive taxation.
The budget targets nearly 50 percent surge in income tax revenue and 36pc increase in general sales tax collection.
Amid concerns of more inflation, the Senate Standing Committee on Finance proposed reduced tax rate for salaried individuals. The committee also approved the tax on non-filers’ phone and internet services, but rejected a 15pc capital gains tax on property transactions and the sharing of parliamentarians’ records with NADRA for tax collection.
Senator Saleem Mandviwalla called for equal taxes on late filers and non-filers, while other members advocated for eae towards filers and stricter taxation on non-filers.
The committee postponed the proposal to increase property tax and rejected extending tax exemptions for FATA and PATA.
FBR chairman highlighted the high withholding tax rate on non-filers, mentioning possible disconnection of their mobile SIMs and business operations. From the next fiscal year, an 18% sales tax will be imposed on processed food items, and zero-rating will be abolished.
The committee also approved a ban on foreign travel for non-filers, with exemptions for certain categories. Non-filers will face disconnection of their mobile SIMs, electricity, and gas connections.
The FBR chairman reiterated that non-filers will face high withholding tax rates and potential disconnection of their mobile SIMs and business operations, including those temporarily becoming filers.
