Highlights of tax measures proposed in Budget 2018-19

ISLAMABAD, Apr 27 (APP):The government has proposed several tax relief measures in its Budget 2018-19 to facilitate the middle income people in the country.
Following are the relief measures introduced in income tax,
— Increase in threshold of income tax enhanced from Rs. 400,000 to 1,200,000.
— Tax rates for individuals has been reduced to 15 percent
— Five tax slabs introduced for all individuals
— Reduction in corporate tax rates shall be reduced from 13 percent in tax year 2018 to 25 percent in tax year 2023
— Corporate tax will be 29 percent and to be reduced by 1 percent each year up to 2023
— Tax on Association of Persons have been reduced to 30 percent
— Existing 7 slabs of AOPs have been reduced to 6 slabs
— Tax rate on undistributed profit reduced to 20 percent
— Applicable rate on accounting profit in case of failure to distribute such dividends being reduced from 7.5 percent to 5 percent
— Advanced tax on banking transaction of more than Rs 50,000 per day by non-filers has been reduced to 0.4 percent
— Withholding tax on issuance of bonus shares has bee withdrawn
— Limit of tax credit for investment in shares increased from Rs 1.5 million to Rs 2 million
— Minimum threshold of payment of tax to preclude recovery of tax during pendancy of first appeal has been reduced from 25 percent to 10 percent of the tax payable.
— Minimum threshold of tax deduction on goods and services has been enhanced threefold.
— Relief given for taxpayers filing returns in AJK and Gilgit Baltistan
— 50 percent tax rebate shall be allowed for foreign film makers
— 50 percent tax reduction in income tax liability allowed to companies driving income from film making
— Exemption for allowances of armed forces personal
— Tex rate on the import of coal by manufacturers reduced to 4 percent
— Advance income tax on credit/debit cards 1 percent from filers and 3 percents from non-filers
— Withholding tax rates for non-filers has been increased from 12 percent to 14 percent
— Withholding tax for non-filers companies increased from 12.5 percent to 15 percent
— Minimum tax collection from marraige halls fixed at 5 percent of bill or Rs 20,000 per function in major cities, Rs 10,000 per function in remaining cities
— Tax on dealers margin of a petrol pump operator be collected on ex-deport sale price of HSD at rate 0.5 percent from filers, 1 percent from non-filers
— For promotion of exports, Custom Duty (CD) on raw materials and inputs have been withdrawn
— Reduction of CD on multi-ply and allumunium foil from 20 percent to 18 percent
— Reduction of CD on finished rooms from 20 percent to 10 percent
— Withdrawal of 11 percent CD on acrylic tow
— Zero rating on import of potato is being granted retrospectively on 200,000 metric tons imported during period May 5, 2014 to July 31 2014
— Reduced rate of sales tax at 5 percent is being introduced on import of 19 times of cinematographic equipment