ISLAMABAD: A copy of the budget speech to be given by Finance Minster Abdul Hafeez Shaikh later today (Friday) has been obtained by Express News.
According to this, the tax base will be increased by Rs45 billion by bringing in new taxpayers. The target for the total tax revenue is expected to be Rs85 billion, Rs40 billion of which is to be brought in by administrative measures.
The speech states that the people of Pakistan will be given relief from taxes. Honest tax payers will be granted a Tax payer Honour Card, and they will be given priority in Nadra, passport offices, immigration and all other government offices.
With reference to withholding tax, the limit of monetary transactions made in banks is to be increased from Rs25,000 to Rs,50,000.
Bank dividends, though, will be taxed at 25% for the year 2013 and at 35% for the year 2014 and beyond.
To develop the capital and stock markets, the Amnesty Scheme - announced by an ordinance - will be made a part of the Finance bill. It is being approved by the Parliament.
According to this, people making investments in stock markets will not be asked about their source of income. To put this scheme into action, investments will have to be held for 120 days.
To bring undocumented factors in the tax net, industrialists will be made withholding agents so that the 1% tax given to suppliers can be adjusted.
Different rates of general sales tax are to be abolished and a uniform GST of 16% is to be imposed.
To abolish illegal refunds, plastic, sprinkles, spray equipment, mono-filament yarn and net cloth are to be zero rated. Moreover, stationary is to be tax exempted.
In addition to this, to control smuggling, custom duty is to be reduced by 5% to 30%. A new version of custom tariff in accordance with world standards of custom headings will be introduced. It is estimated that Rs10 to Rs12 billion will be made in revenues.
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