Highlights of Budget 2017-18 (Part II)

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Senator Najma Hameed said that several incentives have been announced by the government in present budget to give relief to poor segment of the society. He said that adequate allocations have been made for health and education sector. She said that more allocations have been made for Pakistan Bait-ul-Mal and Benazir Income Support Programme (BISP). Senator Daud Achakzai said that the more allocations should be made for less developed areas in the present budget. He added the government should also start work on FATA reforms. He demanded the government to allocate more funds for drinking water schemes for Balochistan as the people of the area were facing acute water shortage problem. He said that the government should also address the loadshedding issue. He asked to raise salary of government employees and announce more allocations for poor and destitute people of the country in the budget.

ISLAMABAD, May 26 (APP): Following are the highlights of Part II of Budget 2017-18:
INCOME TAX

–RELIEF MEASURES–

– Suitable income tax ratio for corporate sector with target of
30 percent
– Reduction in withholding tax on registration of vehicles from Rs
10,000 to Rs 7,000 (850 cc), Rs 20,000 to Rs 15,000 (upto 1000 cc)
and Rs 30,000 to Rs 25,000 (upto 1300 cc)
– No withholding tax for vehicles bought under PM’s Youth
Loan Programme
– Advance tax limit increased from Rs 0.5 to one million rupees
– Right of appeal on non-filing of income tax returns
– Increase in exemption limit on insurance premium to Rs 0.3 million
– Tax exemption for Gulab Devi Hospital, Poverty Alleviation
Fund and National Academy of Performing Arts

–REVENUE MEASURES–

– Increase of dividend in tax ratio from 12.5 to 15 percent
– Increase in minimum tax ratio on turn over from one to 1.25 percent
– 5 percent withholding tax on tobacco cess
– Reverting fixed tax per unit on builders and developers

SALES TAX AND FEDERAL EXCISE DUTY

–RELIEF MEASURES–

– Termination of 2 percent increased tax on lubricating oil
– Decrease in sales tax on imported hybrid electric cars
– Sales tax exemption on premixes to stop stunting
– Ending sales tax withholding tax on supplies among registered persons, however remains same on supplies to government departments
– Decrease in sales tax on poultry machinery from 17 to 7 percent
– Decrease in sales tax on multi-media projectors from 17 to 10 percent

–REVENUE MEASURES–
– Increase in Federal Excise Duty on cement to Rs 1.25 per kilogram
– Increase in sales tax upto 6 percent on commercial import of cloth
– Increase in FED on cigarettes
– Increase of cost of electricity for Steel sector from Rs 9 to
Rs 10.5 per unit

CUSTOMS

– Relief for agriculture and poultry farming sector: Ending 5 percent regulatory duty on import of grand parent and parent stock of chicken, reduction of custom duty from 11 to 5 percent, reduction of custom
duty on hatching eggs from 11 to 3 percent
– Exemption on custom duty on import of ostrich
– Relief for health sector:

a) Reduction of custom duty from 20 to 3 percent on import
of pre-fabricated clean rooms
b) Reduction of custom duty from 16 to 5 percent on surgical
gown and bandage
c) Duty free import of machinery, equipment, appliances wheel-chairs, surgical dental furniture and spares for Armed Forces’
hospitals, Fauji Foundation and Pakistan Atomic Energy Commission
similar to the already federal and provincial medical set-ups
d) 20 percent custom duty on electric cigarettes
– Increase in regulatory duty on Paan and Chhalia from 10 to 25 percent
– Reduction of custom duty on baby diapers from 16 to 11 percent
– Reduction on custom duty from 16 to 11 percent on Veneer sheets
– Extension in 11 percent concessional ratio on sales tax of set top boxes, tv broadcast transmitters and reception apparatus upto June 30, 2018