ISLAMABAD - Senate Standing Committee on Finance and Revenue on Wednesday approved several budget proposals including increasing Federal Excise Duty on air tickets, levy on import of mobile phones and others.
The meeting, which met under the chair of PPP Senator Saleem H. Mandviwalla, has discussed the Finance Bill 2022-23. The committee has approved the government’s proposals to increase FED on air tickets. The FED rate has been increased from Rs10,000 to Rs50,000 on club, business and first-class travel by air and on telecommunication services to 19.5pc from 16pc.
The committee members opposed the proposals to increase tax from 12.5 percent to 17 percent on electric engine vehicles. Members were of the view that government should promote electric cars in the country. Therefore, it should not increase the tax on such vehicles. The representatives of Islamabad Chamber of Commerce and Industry (ICCI) informed the committee that government should withdraw ban on the import of construction sector materials. They informed that six big hotels are being constructed in federal capital. However, the ban on imported commodities would affect these construction projects. They said 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. However, on the demand of ICCI, the Senate committee recommended to keep advance tax on purchase and buying of property on one percent for the tax filers.
The parliamentary committee has also proposed to impose levy on import of cell phones. In Finance Bill, the government had proposed to impose levy on the import of mobile phones. The government has proposed to impose tax on higher income persons. The government would charge 2 percent tax from all companies and AOPs who are earning Rs300 million or higher per year.
The meeting, which met under the chair of PPP Senator Saleem H. Mandviwalla, has discussed the Finance Bill 2022-23. The committee has approved the government’s proposals to increase FED on air tickets. The FED rate has been increased from Rs10,000 to Rs50,000 on club, business and first-class travel by air and on telecommunication services to 19.5pc from 16pc.
The committee members opposed the proposals to increase tax from 12.5 percent to 17 percent on electric engine vehicles. Members were of the view that government should promote electric cars in the country. Therefore, it should not increase the tax on such vehicles. The representatives of Islamabad Chamber of Commerce and Industry (ICCI) informed the committee that government should withdraw ban on the import of construction sector materials. They informed that six big hotels are being constructed in federal capital. However, the ban on imported commodities would affect these construction projects. They said 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. However, on the demand of ICCI, the Senate committee recommended to keep advance tax on purchase and buying of property on one percent for the tax filers.
The parliamentary committee has also proposed to impose levy on import of cell phones. In Finance Bill, the government had proposed to impose levy on the import of mobile phones. The government has proposed to impose tax on higher income persons. The government would charge 2 percent tax from all companies and AOPs who are earning Rs300 million or higher per year.
