LAHORE, Jun 15 (APP):Provincial Finance Minister Makhdoom Hashim Jawan Bakhat said on Monday that more than Rs 56 billion Tax Relief Package will be ensured in the financial year 2020-21 to facilitate the business sector and the people at large.
During his budget speech in the assembly session here, he added that Punjab has been making substantial advancement in achieving economic targets and tax revenue collection in the current fiscal year before spread of coronavirus i.e. till March 2020 as Punjab’s Own Source Revenues were up by 23 per cent.
Before Corona pandemic, he mentioned, FBR tax revenues were showing 13 per cent increase; Current Account Deficit was reduced by 71 per cent, Fiscal Deficit reached four per cent to GDP ratio. PTI government has its inception been following the policy of austerity and in this connection, supplementary grants worth Rs 61 billion has been rejected during current FY alone, while Austerity Committee also helped save Rs 1.5 billion by reducing demands for grants from various departments.
Hashim Jawan said that key points of the next fiscal year’s budget are: Tax relief package; cut in current expenditure and austerity; economic stability and development; social protection and steps for deserving segments; human capital development; agriculture and food security and Public-Private Partnership (PPP).
Giving details of relief package under the head of GST on Services, he said that Health Insurance and Doctors’ Consultancy Fee and tax on hospitals which were 16 and five percent respectively, have been proposed to bring to zero; bringing down 16 per cent tax on 20 services to five percent including small hotels and guest houses, marriage halls/lawns/marquees, tent caterers, IT services, tour operators, property dealers, rant a car service, cable TV operators, treatment of textile and leather, food grains commission agents, photography, parking services, and Auditing, Accounting and Tax Consultancy Services etc.
It has been proposed in the budget document to charge tax at Rs 50 per square foot and Rs 100 per yard from property builders and developers, and the property builder and developer will pay tax, he will be exempted from tax on construction services.
He said that 16 per cent and five per cent tax will be charged respectively from customers who pay through cash and debit card at restaurants and beauty parlors, adding that it will help document the economy.
During next FY, he said, the property tax can be paid in two installments and those who pay full tax till September 30, 2020 will be given 10 per rebate instead of five per cent and there will be no surcharge on tax on them during FY 2020-21.
It has also been proposed to reduce Entertainment Tax from 20 per cent to five per cent, besides exempting all cinema houses from Entertainment Duty till June 30, 2021, and implementation on New Valuation Table of Property Tax has also been deferred for one year.
He said that 20 per cent instead of 10 per cent rebate will be given upon payment of full Registration and Token Tax of vehicles, and five per cent Special Discount will be given on online payment through e-Pay Portal.
Board of Revenue is eying Rs 20 billion revenue from lease of state lands, rental and sale etc. under Land Utilization Policy. In this connection, amendments in Land Revenue Act 1967 will soon be passed.
It has been proposed in the next FY budget to bring down Stamp Duty ratio from five to only one per cent that will promote construction industry and help generate employments.
As per vision of Prime Minister Imran Khan and Punjab Chief Minister Sardar Usman Buzdar, he said that fee on business licenses fall in the ambit of local governments has been brought to zero to ensure ease of doing business. It will not only help promote economic activities but also ensure tax relief worth Rs 600 million to local populations, he concluded.