ISLAMABAD - Senate Standing Committee on Finance and Revenue on Saturday approved the government’s proposal to increase the tax on registration of cars by 100 per cent for the non-tax filers in annual budget for the next fiscal year.
In Finance Bill 2022-23, the federal government has proposed to increase the tax for non-filers from 100 percent to 200 percent for purchasing cars. The committee members were of the view that government should not increase the tax on registration for small vehicles whether they are filers or non filers. However, Chairman Federal Board of Revenue (FBR) Asim Ahmed replied that government is documenting the country’s economy so it is important to bring non-tax filers into tax net. He further said that when someone could afford to purchase small vehicles so he should also file his tax returns. Later, the committee has approved the proposal of enhancing tax for non-filers on purchase of vehicles.
Chairman FBR further informed that advance tax on purchase and buying of property has increased from one to two percent for filers and to five percent for the non-filers in the Finance Bill 2022-23. A meeting of the Senate Standing Committee on Finance and Revenue continued for the fifth consecutive day under the chairmanship of Senator Saleem Mandviwala at Parliament House. The committee has reviewed clause by clause the provisions related to income tax and others in the Finance Bill 2022. The parliamentary committee was informed that FBR has given tax exemption to the Supreme Court dam fund, as welfare organizations are enjoying same tax relief owing to the nature of their work which is public-oriented. However, the committee members have expressed reservations over the decision. Senator Sadia Abbasi of PML-N noted that conserving water and building water reservoirs was government’s job. It is not the jurisdiction of the courts to increase water resources in country, she added. Senator Talha Mahmood of JUI-F has also supported Senator Sadia’s viewpoint. He said that this money should be deposited in the national exchequer as per the law.
The officials of FBR informed the committee government is withdrawing exemption of Capital Gain Tax on the properties of serving and retired government and military employees. The committee has approved the proposal. The committee rejected a proposal to put tax on the salary after combining pilots’ flying allowance into it.
Giving briefing to the committee members, FBR chairman said that the problem of Pakistan Pharmaceutical Manufacturers Association’s refunds had been sorted. He further informed the committee that for commercial importers, duty on imported coal had been increased from 2 percent to 4 percent. However, for IPPs, duty on coal has been reduced from 2 percent to 1 percent, he added. He said that Pakistanis had to pay 1 percent capital value tax on their declared property abroad. Later, committee chairman Saleem Mandviwala said that they have reviewed the Finance Bill 2022-23. The committee would discuss its budget proposals with the Federal Minister for Finance and Revenue Miftah Ismail on Monday. Later, the budget proposals would be presented in Senate’s session on Tuesday, which would be moved to National Assembly for incorporation into Finance Bill 2022-23.
In Finance Bill 2022-23, the federal government has proposed to increase the tax for non-filers from 100 percent to 200 percent for purchasing cars. The committee members were of the view that government should not increase the tax on registration for small vehicles whether they are filers or non filers. However, Chairman Federal Board of Revenue (FBR) Asim Ahmed replied that government is documenting the country’s economy so it is important to bring non-tax filers into tax net. He further said that when someone could afford to purchase small vehicles so he should also file his tax returns. Later, the committee has approved the proposal of enhancing tax for non-filers on purchase of vehicles.
Chairman FBR further informed that advance tax on purchase and buying of property has increased from one to two percent for filers and to five percent for the non-filers in the Finance Bill 2022-23. A meeting of the Senate Standing Committee on Finance and Revenue continued for the fifth consecutive day under the chairmanship of Senator Saleem Mandviwala at Parliament House. The committee has reviewed clause by clause the provisions related to income tax and others in the Finance Bill 2022. The parliamentary committee was informed that FBR has given tax exemption to the Supreme Court dam fund, as welfare organizations are enjoying same tax relief owing to the nature of their work which is public-oriented. However, the committee members have expressed reservations over the decision. Senator Sadia Abbasi of PML-N noted that conserving water and building water reservoirs was government’s job. It is not the jurisdiction of the courts to increase water resources in country, she added. Senator Talha Mahmood of JUI-F has also supported Senator Sadia’s viewpoint. He said that this money should be deposited in the national exchequer as per the law.
The officials of FBR informed the committee government is withdrawing exemption of Capital Gain Tax on the properties of serving and retired government and military employees. The committee has approved the proposal. The committee rejected a proposal to put tax on the salary after combining pilots’ flying allowance into it.
Giving briefing to the committee members, FBR chairman said that the problem of Pakistan Pharmaceutical Manufacturers Association’s refunds had been sorted. He further informed the committee that for commercial importers, duty on imported coal had been increased from 2 percent to 4 percent. However, for IPPs, duty on coal has been reduced from 2 percent to 1 percent, he added. He said that Pakistanis had to pay 1 percent capital value tax on their declared property abroad. Later, committee chairman Saleem Mandviwala said that they have reviewed the Finance Bill 2022-23. The committee would discuss its budget proposals with the Federal Minister for Finance and Revenue Miftah Ismail on Monday. Later, the budget proposals would be presented in Senate’s session on Tuesday, which would be moved to National Assembly for incorporation into Finance Bill 2022-23.
