Budget FY20 Punjab to impose tax on 10 new sectors

The Punjab government will aim to generate a revenue of Rs15 billion

LAHORE: The Punjab government, in its next fiscal year’s budget, will impose taxes on 10 new sectors to generate a revenue of Rs15 billion. Taxes will be imposed on the income of doctors, tailors and rent receipts. According to details, recommendations for imposing taxes on inflation-hit commoners have been given. According to the budget draft, services tax will be imposed on 10 new sectors. Doctors and medical practitioners will pay 5% tax, while tailors, dress designers and renters of apartments as well as residential and commercial towers will have to pay 16% tax on their income. The renters of construction machinery will have to pay 16% services tax, while those engaged in air services will have to pay 5% tax on their income. The inclusion of new sectors in services tax will push up inflation. The burden of taxes on services will be passed on end-consumers in the form of increased prices.

Published in The Express Tribune, June 14^th, 2019.

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