ISLAMABAD, Jan 23 (APP):Highlights of Finance bill 2019
Following are the salient features of the Finance supplementary second amendment bill announced by Finance Minister Umar Asad in the National Assembly on Wednesday.
* Income tax rate on income from SME, Agriculture and Low Cost Housing Financing to be reduced to 20% for banks.
* Withholding tax on banking transactions abolished for filers.
* Withholding tax on traders changed from 6% minimum tax rate to final discharge of liability.
* Regulatory Duty on raw materials for various tariff lines reduced or abolished.
* Customs duty, Sales Tax and Income Tax abolished on production and renewable power generation machinery for the next five years.
* Super Tax on non banking companies abolished from July 2019 onwards.
* Corporate tax rate structure maintained.
* Tax on retained earnings to be abolished.
* Intercorporate tax reliefs restored.
* Advance tax on shares trading abolished.
* Capital loss carry forward allowed for next three years.
* Higher taxes on cars of 1800cc engine capacity or above.
* Non filers can buy cars upto 1300cc but with a higher tax rate.
* Withholding tax statements will be filed half yearly instead of monthly.
* Promissory notes to be issued for traders to promote exports.
* GIDC scheme to be issued tomorrow with expected reduction in GIDC and Rs 200/bag in urea prices.
* Taxes on cheaper mobile phones to be decreased.
* Revolving credit of PKR5bn for Home Developers.
* Tax for small marriage lawns decreased to Rs 5,000 from Rs 20,000