ISLAMABAD, Apr 27 (APP):Minister for Finance Miftah Ismail Friday presented the federal budget for the financial year 2018-19 here at the Parliament House.
Following are the highlights of his budget speech: (Part-II, III)
– Property transactions to be recorded on value declared by buyer, seller, to discourage whitening of black money
– To cut under-declaring of value of property, FBR notified rates abolished
– 1% adjustable advance tax from purchaser to replace existing withholding tax on sellers, purchasers
– Provinces requested to abolish provincial rates on stamp duty and collect 1% on value declared by buyer, seller
– FBR gets right to buy back property by paying 100% over declared value property
– Non-filers, not permitted to buy property with declared value exceeding four million rupees
– Super Tax rate to be reduced by 1% for banking and non-banking sector
– Corporate Tax to be reduced from 30% in 2018 to 25% in 2023
– Rate of tax on dividends of Real Estate Investment Trust cut from 1.5% to 7.5%
– Rate of withholding tax from non-filers to be reduced from 0.6% to 0.4% on bank transactions
– Threshold for tax deduction on payments for goods and services enhanced to Rs 30,000 and 75,000 respectively
– 10 years income tax exemption for refineries with capacity of 100,000 barrels per day
– Aziz Tabba Foundation, Saylani Welfare and Al-Shifa trust get tax exemption
– Withholding Tax on non-filers up from 7% to 8% in case of company, and 7.75% to 9% in non-corporate case
– Tax of Rs 1000 on income between Rs 400,000 to Rs 800,000 and Rs 2000 on income from Rs 800,000 to Rs 1200,000
– Rate of Sales Tax be reduced from 17% to 12% on RLNG
– 10% Sales Tax on fish feed removed
– Sales Tax on agriculture machinery reduced from 7% to %5
– Exemption on 21 types of computer parts imported by manufacturers to be removed to encourage local assembly
– Zero rating for stationery items be restored
– Value addition tax of 3% on import of second hand clothing, footwear excluded
– Further Tax rate increased from 2% to 3%
– Federal Excise Duty on locally produced cigarettes enhanced ro Rs 3964, Rs 1770 and Rs 848 per thousand cigarettes
– Customs Duty of 3% on import of bulls withdrawn
– Customs Duty on import of feed for livestock reduced from 10% to 5%
– To address issue of physical, mental stunting in children 3% duty on import of micro feeder equipment withdrawn
– 5% customs duty on on cancer drug Tasigna withdrawn
– Customs Duty of 11% on corrective eyesight glasses reduced to 3%
– Regulatory Duty on import of optical optical fibre cable reduced from 20% to 10%
– Duty on optical fibre cable and raw material cut to 5%
– Customs Duty on Acetic Acid cut from 20% to 16%, on import of plasters cut from 16% to 11%
– Customs Duty on Carbon Black rubber grade for tyres cut from 20% to 16%
– Customs Duty on silicone electrical steel sheets for transformers reduced from 10% to 5%
– Duty on import of electric cars to be reduced from 50% to 25%, besides exemption from regulatory duty of 15%
– Import of CKD kits for assembly of domestically produced electric cars proposed at 10%
– Customs Duty on LED parts and components of 5% withdrawn
– To promote use of electric vehicles 16% duty on charging stations withdrawn
– Customs Duty cut from 20% to 11% on pre fabricated structures for hotels, motels in hill stations
– BISP funding increased to Rs 124.7 billion, stipend up from Rs 3000 to Rs 4,834
– BISP beneficiaries to get one-time cash grant of Rs 50,000 to start business under NPGP
– Rs 688 million allocated for Pakistan Poverty Alleviation Fund
– Rs 3.5 billion for PM Interest Free Loan under PPAF
– 10% increase in pay, pension of government civil military employees
– House rent ceiling, allowance increased by 50%
– Minimum Pension up from Rs 6000 to Rs 10000
– Minimum Pension for pensioners above 75 now Rs 15000
– Rs 12 billion allocated for Advances to govt servants for house building, transport
– Rs 5 billion for Senior Officers Performance Allowance
– Relief for widow borrowers from House Building Finance Corporation increased from Rs 0.35 million to Rs 0.6 million