- Personal tax rates for salaried persons proposed
to be reduced to range between 3.5% to 30%.
- Annual statement filed by the employer proposed
to be considered as sufficient discharge of liability
to file a return on the part of the employee.
- Enhancement of exemption limit from Rs.300,000
to Rs.400,000 proposed for senior citizens.
- Tax rebate proposed to be increased from 50% to
75% in the case of teachers and researchers.
- Increase in limit from Rs.100.000 to Rs.150,000
proposed for investment in TFCs and new shares.
- Exemption for employees proposed in respect of
perqs carrying zero marginal cost to the employers.
- Relaxation proposed in conditions for mandatory
filing of return.
- Straight deduction proposed for donations made
to specified institutions.
- Removal of limit proposed on value of motor vehicle
for the purpose of claiming depreciation.
- Depreciation Schedule proposed to be rationalized.
- Provision of deductibility of bad debts proposed
to be liberalized.
- Reduced rate of 20% proposed for small companies
– exemption from turnover tax – no obligation
to act as withholding agent.
- Reduction of 1% in tax proposed for new enlistment
on stock exchanges.
- Concept of group relief proposed to be extended
to services sector.
- Two way set-off losses proposed on amalgamation
– amalgamation proposed to be opened up for
industrial undertakings.
- One time exemption proposed on corporatization
of individual stock exchange membership.
- Exemption proposed for insurance companies in respect
of capital gains derived from sale of shares.
- Rationalization of withholding tax on sale of hides
and skins proposed.
- Income from services rendered abroad proposed to
be taxed @ 1%.
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- Withholding tax on ships imported for dismantling
proposed to be reduced from 3% to 1%.
- Withholding tax rate proposed to be reduced to
1% on imports of certain types of fabrics.
- Withholding tax on telephone subscription proposed
to be rationalized.
- One time waiver from payment of additional tax
proposed for telecom companies.
- Exemption from income tax proposed for corporatized
entities of WAPDA.
- Exemption for Hubco in respect of profit and debts
on accounts with financial institutions, proposed
to be restored.
- Exemption from income tax proposed for M/s Fugro
Geodetic Limited from survey of continental shelf.
- Exclusion of large corporate trading houses from
presumptive tax regime.
- Enhancement in tax rates proposed for certain exports.
- Tax @ 0.1% on cash withdrawal from banks proposed.
- Withholding tax of 6% proposed on purchase of new
cars.
- 1% final tax proposed on retailers of textile goods
with turnover of more than of Rs. 5 million.
- A uniform rate of 6% of withholding tax proposed
on all types of contracts.
- Option to be assessed under PTR proposed to be
withdrawn in the case of manufacturers cum suppliers.
- Enabling provision proposed to be introduced for
electronic filing of return.
- Direct reference to High Court proposed.
- Commissioner (Appeals) proposed to be divested
of the power to set-aside an assessment.
- Provisions for Alternate Dispute Resolution proposed
to be rationalized.
- Measures for implementation of Voluntary Pension
System Rule proposed to be introduced.
- Exemption proposed to be allowed to Kot Addu Power
Station on assets purchased in 1996 prior to privatization.
- Alternate Dispute Resolution proposed to be introduced
for wealth tax cases.
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Mr. Riaz Ahmed
