Budget 2012-13 : Income Tax Exemption Limit Raised by Rs.50,000

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  1. Veer

    Veer Super Star Pakistani

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    ISLAMABAD: The government is expected to announce in the federal budget-2012-13 several reliefs in income tax, federal excise duty and sales tax on Friday evening here, Geo News reported.

    Besides providing relief in income tax, a uniform sales tax at 16 percent has been proposed.

    Geo News has obtained a copy of the federal finance minister’s budget speech to be made this evening, which proposes that the income tax exemption limit be raised by Rs50,000 i.e. annual income of Rs4,00,000 and above would be taxable from now on.

    Five slabs has been suggested for the purpose of income tax, while an amount of Rs1000 per annum would be recovered from persons drawing salary of Rs35,000 on account of income tax.

    Tax payer honour card has been introduced, which would entitle the taxpayers to certain facilities. Turnover tax rate is being cut to a half.

    The government wants to gradually eliminate the presumptive tax system in three years. Five percent tax on importers is being reduced to 3 percent, while 1 percent tax on exporters will be reduced to 0.5 percent.

    Withholding tax exemption limit of Rs25,000 on withdrawal of cash from banks is being raised to 50,000. Different rates of general sales tax to be done away with the imposition of a uniform 16 percent sales tax.

    Sales on locally produced paper and canola ghee being declared zero rated. Sales tax on tea proposed to be reduced to 5 percent from 16 percent.

    Custom duty highest rate instead of 35 will be reduced 30 percent. Besides custom duty on pencil, copy ink etc. is being abolished. Federal excise duty on cement is being reduced by Rs100 per ton. Custom duty on scrap used as fuel in cement factory will be reduced to 10 percent from 20. Custom duty on 94 items of pharmaceutical raw materials is being abolished.

    Excise duty on mobile oil, base oil, lubricant is being lifted, Federal excise duty on livestock insurance is being done away, while federal excise duty of asset management companies also being abolished.

    Electricity for steel mills would be costlier, as sales tax on per unit electricity to this sector has been proposed to be raised to Rs8 from Rs6.
    Source: http://www.thenews.com.pk/GeoEventDetail.aspx?ID=52071

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