Punjab to widen tax net to all services
Income tax collection was about Rs335 billion more than the target, offsetting the impact of missed sales tax and customs duty targets. photo: file
To facilitate documentation of the economy, all services under the Punjab Revenue Authority (PRA) will be brought under the tax net, declared the provincial finance minister.
Tax rate on all services should be uniform while the inclusion of exempted services in the tax net with a nominal rate would ensure the promotion of a documented economy, said Mujtaba Shujaur Rehman, Finance Minister of Punjab, while presiding over fourth meeting of the Resource Mobilisation Committee for 2024-25.
“The facility of reduced rates of sales tax on services will continue for those paying through credit or debit cards. We are well aware of the problems faced by farmers. A significant relief will be given to them in the next budget.” The minister informed the committee that the Board of Revenue was reviewing tax rates after five years and a formula would be determined for changing the tax rates, which would automatically increase the rates after a certain period.
Calling stamp duty a provincial tax, he stressed that the rates set by the Federal Board of Revenue (FBR) were affecting the provincial revenue collection.
Published in The Express Tribune, May 16th, 2024.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.