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.
COMMENTS (17)
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Badly written and badly structured story
"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."
Who thinks of such brilliant steps which clearly violate human rights but look good on paper, what about the people whose incomes are not taxable? Why should they be given lower priority then these people?
I guess they should just start earning more by hook or by crook.
Who will pay the tax?
The whole rigmarole of preparing annual budget is an exercise in futility.Incremental increases to last year's estimates are added, based on the noise raised by the beneficiaries, and then figures of income are manipulated to reach the balance the position within already assumed deficit level.This malaise would not go unless a zero-based budgetary exercise is undertaken and allocations are made on need and priority basis rather than historical trends.But this process would require a thorough examination of the planned economy ,the potential and capacity of the agencies involved and the likely benefits to the country and its people.This is a time consuming activity which no government is likely to undertake because of political implications.
This is their last budget as a Govt as elections are around the corner so PPP will make it ppl friendly as much as they can
@Sajjad: what special are they doing special for the countrymen that make them deserving 100%??????????????????????????????????
Govt. employees salaries should be increased by 100%, please have mercy on us!
The amnesty scheme is an admission of failure to enforce. Rather than issue Honest Tax Card why not take enforcement seriously. FBR is a government dept. Instead of making that dept deliver government wishes to leave it to the tax payer to be honest (or otherwise). If these are the recommendations (the report is based on an informal release of information), it is a budget to muddle through.
Tax payer Honour Card.. So whats the criteria for this ? PARCHI ???
Budget is always army dost budget since 1947...
unless we get rid of Jageerdari & Gernali Nizam all is hopeless.....
Everything will raise/increase BUT SALARY ?
Alot of these are in line with wht profesionals have been recommending to the fbr/finance ministry, i.e. simplying the tax net.
Pretty disturbing: Finance Ministers speech becomes public before he even delivers it to the Parliament.
Stock markets Amnesty Scheme aka Stock Market NRO should not be approved by the parliment
Everything will raise/increase BUT SALARY :@
please increes govt.servent salry 100%
Only rhetorics can not bring relief to poverty stricken Pakistan. There is need of action, not words.