23/01/2019
*Finance Supplementary Second Amendment
Bill Salient Features*
1. Focus on: 1) reduction in fiscal deficit, 2) increasing exports, and 3) increasing investments.
2. Income tax rate on income from SME, Agri and Low Cost Housing Financing to be reduced to 20% for banks.
3. Withholding tax on banking transactions abolished for filers.
4. Withholding tax on traders changed from 6% minimum tax rate to Final discharge of liability.
5. RD on raw materials for various tariff lines reduced or abolished.
6. Customs duty, Sales Tax and Income Tax abolished on production od renewable power generation machinery for the next five years.
7. Super Tax on non banking companies abolished from July 2019 onwards.
8. Corporate tax rate structure maintained.
9. Tax on retained earnings to be abolished.
10. Intercorporate tax reliefs restored.
11. Advance tax on shares trading abolished.
12. Capital loss carry forward allowed for next three years.
13. Higher taxes on cars of 1800cc engine capacity or above.
14. Non filers can buy cars upto 1300cc but with a higher tax rate.
15. Withholding tax statements will be filed half yearly instead of monthly.
16. Promissory notes to be issued for traders to promote exports.
17. GIDC scheme to be issued tomorrow with expected reduction in GIDC and PKR200/bag in urea prices.
18. Taxes on cheaper mobile phones to be decreased.
19. Revolving credit of PKR5bn for Home Developers.
20. Tax for small marriage lawns decreased to PKR5,000 from PKR 20,000
