The federal government led by Pakistan Tehreek-e-Insaf (PTI) tabled Finance (Supplementary) Bill 2021 or the mini-budget in the National Assembly for approval.
As per details, The Finance (Supplementary) Bill 2021 was tabled by Federal Finance Minister Shaukat Tarin in the national assembly amid ruckus by the opposition members.
Farrukh Habib, The Minister of State for Information and Broadcasting told media that the finance minister said that tax exemptions worth just Rs2 billion will be reviewed under the Finance (Supplementary) Bill 2021.
Federal Finance Minister Shaukat Tarin while sharing further details about the mini-budget, said that taxes would be imposed on computers, vehicles, imported food items, smartphones and other items under supplementary finance bill.
The mini-budget will increase or introduce taxes on smartphones, imported items, personal computers, and vehicles.
Here are the salient features of mini-budget:
17% Tax on Jewellery:
The mini-budget proposes to impose a 17% tax on jewellery made of gold, silver or other precious metals.
17% Tax on Grocery stores:
The mini-budget proposes to increase tax on grocery store owners from 10% to 17%.
17% Additional Tax on Smartphones:
The finance bill proposes to impose a 17% additional tax on imported mobile phones.
15% Tax on Phone calls:
The budget also proposed to increase income tax on phone calls to 15%.
Tax Imposed on Imported Computers:
Under the proposed mini-budget, additional tax would be imposed on imported personal computers, laptops, and notes books, The bill, however, stated that tax would not be increased on locally manufactured computers, laptops.
17% Tax on Electric Vehicles:
The Supplementary Finance Bill proposed to increase tax on the imported Electric Vehicles parts by 17% from 5%. The tax rate for electric tractors, rickshaws, 3-wheelers, and electric motorcycles would stay at 1%.
17% Tax on Cars up to 1000cc:
The federal excise duty on vehicles up to 1000cc engine capacity has been proposed to increase by 17%.
Tax on Imported Food Items, Flour Mills, Bakeries, Restaurants and Fast-Food Chains:
According to the bill the government has abolished Rs215 tax exemptions on imported food items, There is a proposal to impose 10% tax on flour mills, The tax would also be imposed on bakeries, restaurants and fast-food chains.
Tax on Imported Vegetables, Duty Free Shops and Makeup Items:
10% tax was proposed on imported vegetables, 17% tax on duty-free shops. A tax increase was also imposed on makeup items.
17% on Milk:
The finance bill also proposed 17% tax on flavored milk.
Tax on Foreign TV Dramas:
The finance bill levies advanced tax on foreign TV serials and dramas.
Tax on Imported Machinery of Power Sectors:
The finance bill also proposed to exempt tax on imported machinery of power sectors.
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