BUDGET 20-21

BULLET POINTS

1- No new tax to give relief to people

2- Ahsas program to continue by increased budget

3- To improve tax collection

4- To decrease in govt. expenditure

5- To improve subsidy system

6- Poverty elevation program

7- Higher education budget increased

8- Measures taken to improve remittances

9- Kamyab Naujawan program budget introduced

10- To improve public services through E-governance

11- Artist welfare fund increase

12- Inflation to be decrease

13- FBI increase by 25%

14- To improve health services by ICT

15- To open smart schools

TAXES :

16- POS of retailer business to increase

17- 14% to 12% sales tax on retailers

18- Hotel minimum tax decrease to 0.5% July to September

19- Fixed tax scheme introduced for Small and medium businesses

20- Export rebate, to direct transfer in business bank accounts

21- Raw Material fully exempt from custom duty to respective nature of businesses having 20000 items

22- Custom duty of 200 items in tariff line decrease

23- PRD to decrease

24- Poor people benefits --- corona—supplements etc to be exempted from duties and taxes

25- Custom official powers has been decreased

26- Inclusive of advance ruling methods in custom law

27- Unregistered sales tax person—CNIC condition from 50 thousand to one lakh

28- Covid 19 sales items exemption period increased

29- 237 sro for relief extended for further 3 months

30- 11th schedule of sales tax to improve

31- Increase in FED in all type of cigarettes and its articles increased to 100%

32- Caffine items FED from 13 to 25%

33- Double pick up FED to be taxed as other vehicles

34- 17% sales tax on potassium cholaride decrease

35- 14% sales tax decrease to 12% of big retailers

36- Wastage to fixed in manufacturing business

37- 12 schedule sales tax of VAT—manufacturers no sales tax

38- Cement sector decrease from 2 to 1.75 per kilo

39- If Appeal than reference can be made to following years

40- ADRC law to be change

41- STAY provision to be made in ADRC

42- FED law to be enhanced

43- Sales tax act 9th schedule mobile phone manufacture decrease in sales tax

44- E Audit / video link introduced for audit

45- Online sharing of assess data introduced

46- WHT Regime to delete 9 sectors (Education and marriage hall etc)

47- Commercial importer and manufacturer importing on raw material and machinery from 5.5 top 2%
and 1%

48- Machinery examination certificate abolished

49- Aop and individual allowed expenditure to be claimed against property Income

50- Foreign remittances transfer from one bank to another – no tax on that

51- Tax Refund procedure – now changed – one centralized system introduced

52- 152 WHT of non resident for Hajj Companies

53- Advance tax abolished under section 231b and 234 on rickshaw and cars
54- Advance tax payment threshold increased

55- Exemption certificate through automation system

56- Schedule 12 Exemption certificate for advance tax to be produced by person who had already paid
advance tax

57- RIET residential properties CGT period extended

58- Free Zone benefits also to be given modern developers

59- To simple law and business only for PE tax deduction to be made

60- Tax deduction under section 235 now fully adjustable

61- Inclusion in Active tax payer list, proper enquiry to be conducted

62- Automatic return process system to be introduce for any error in return if any

63- For and increase in data base and WHT 236V to be introduce

64- Non resident and resident tax should be same

65- Purchase and leased vehicle threshold to be same

66- Depreciation to be as per best international practice

67- NPO status per 2nd schedule section 100C condition to be strictly followed and only those NPO be
there who benefits the community in general

68- 10% tax to be paid while filing appeal

69- Auto system advance tax to introduce through IRIS by 5th of every advance tax due date

70- CGT on Immoveable property decrease from 5 years to 4 years

71- Non Resident- royalty, fees etc to be decrease

72- FTR to be filed with section 114

73- Appeal fees increased

74- Section 165 WHT for bio annual now to be filed by 3 months instead of 6 months

75- Immoveable taxation CGT from 8 to 4 years and every year decrease by 25%