The government has taken measures of around Rs. 506 billion including taxation measures of Rs. 264 billion and enforcement measures of Rs. 242 billion in the budget (2021-22).
Tax authorities informed media at the FBR Headquarters that total taxation measures have been proposed at Rs. 383 billion for 2021-22. Total relief measures stood at Rs. 119 billion. The net impact of the measures stood at Rs. 264 billion.
The FBR has taken customs duties measures of Rs. 52 billion and relief measures of Rs. 42 billion. The net impact of the customs duties measures stood at Rs. 10 billion.
Sales tax/federal excise measures amounted to Rs. 215 billion whereas sales tax relief totaled Rs. 19 billion. The net effect of the sales tax measures comes to Rs. 196 billion.
The income tax measures have been projected at Rs 116 billion whereas relief has been provided of Rs. 58 billion. The net impact of the income tax measures totaled at Rs. 58 billion.
FBR Members informed that the enforcement measures would result in revenue generation of Rs 242 billion.
They said that the government has reduced the threshold of monthly electricity bill for withholding tax on electricity consumption from 75,000 to 25,000 from domestic users not appearing on Active Taxpayers’ list.
Under the Finance Bill 2021, the zero-rating is proposed to be withdrawn from Petroleum Crude Oil, parts/components of zero-rated plant and machinery, import of plant and machinery by petroleum and gas sector and supply, repair and maintenance of ships. The FBR will generate revenue of Rs 38 billion from this taxation measure.
FBR Members stated that the FBR has not changed the income tax slabs for the salaried class and FED on cigarettes. However, the FBR has eliminated block taxation of property income and shift to normal tax regime; reduced block taxation on capital gain on disposal of immoveable properties if the gain exceeds Rs. 20 million and reduced block taxation on interest income, if it exceeds Rs. 5 million.
The post Govt’s Tax Measures in Budget 2021 Will Cost it Rs. 506 Billion appeared first on .
