More Incentives, More Reasons to Become Filer

Posted on Posted on | 0 Comments | Akbar Tejani

The second mini budget was finally unveiled by Finance Minister on January 23, 2019. The Govt. has proposed has offered various incentives to capital markets and industries including agriculture, small and medium enterprises (SMEs), banks and automobile industry, in particular as part of the proposal. Some of the key incentives that should boost business and investors’ confidence are as follows:

·       Removal of tax on undistributed reserves by listed companies

·       Reduction in filing requirement of monthly advance tax return by withholding agents to bi-annual

·       No super tax on banking sector

·       Reduction of tax on inter-company dividends for group companies

·   Reduction in tax rates on banks’ interest income from advances given to Micro, SME, Low Cost Housing Finance and Farm Credit.

The government has also proposed some additional incentives to filers and / or additional taxes for non-filers as outlined below:

·       50% increase in rates of Advance Tax on registration of motor vehicles for NON-FILERS:

S. No

Engine Capacity

Tax for Non-Filers

Current

Proposed

1

850   cc or below

10,000

15,000

2

851   cc – 1000 cc

25,000

37,500

3

1001 cc – 1300 cc

40,000

60,000

4

1301 cc – 1600 cc

100,000

150,000

5

1601 cc – 1800 cc

150,000

225,000

6

1801 cc – 2000 cc

200,000

300,000

7

2001 cc – 2500 cc

300,000

450,000

8

2501 cc – 3000 cc

400,000

600,000

9

Above 3000cc

450,000

675,000

 

·       No Advance Tax on Cash Withdrawals and Banking Transactions for FILERS.

·    Option to carry forward capital losses on sale of securities for up to three years from tax year 2019 onwards.

It is only a matter of time, and one expects that the government will continue to offer more incentives to filers and tighten the noose for non-filers.

 

Have any questions or comments? Shoot us an email at info@befiler.com or call us at (021) 35303294-6 during office hours. 

 

Don’t forget to like us on Facebook and give us your feedback.

Amnesty Scheme
TAX AMNESTY SCHEME 2019 ASSET DECLARATION SCHEME IN BRIEF Who comes under …
Federal Budget for Financial Year 2019 – 2020 Quick Glance at Major Changes The government is …
How Do I Become a Tax Filer in Pakistan? The tax filing process including NTN registration in …
Befiler’s Role in Improving Tax Awareness and Education in Pakistan Tax awareness is becoming increasingly important as the …
Computerized National Identity NTN Registration with Befiler Online Tax Return Salary Tax Calculator Salary Tax Pakistan Tax Filing