Through the adoption of the Tax Laws Amendment Ordinance 2023 before to the National Assembly session scheduled for January 31, 2023, the administration is likely to offer the mini-budget.
Taxes in New Mini Budget
The Tax Laws Amendment Ordinance 2023 draft includes 300 billion rupees worth of new taxation measures. The federal cabinet must approve the ideas following clearance from Finance Minister Ishaq Dar.
The measures’ main goal is to raise the rates of various withholding taxes. This would make it easier for the Federal Board of Revenue (FBR) to begin collecting taxes right away in February 2022.
The withholding tax on non-filers’ banking transactions would bring in Rs. 45 billion.
Additional customs charges and a 3 percent flood levy will bring in an additional Rs 60 billion in revenue.
According to estimates, the proposed hike in the capital value tax rates on imported and domestically made automobiles will bring in an additional Rs. 10 billion.
It is predicted that the proposal to tax banks’ foreign currency income will bring in Rs. 20 billion.
An increase in the federal excise duty (FED) on sugary drinks is being proposed, and it will bring in Rs. 60 billion.
The planned effect of an additional increase in the FED on cigarettes is estimated to be between Rs. 25 and Rs. 30 billion.
About Rs. 20–30 billion would be generated by the suggested increase in the rate of advance tax on the purchase or sale of immovable property.
Revenue losses of Rs. 20–25 billion are expected as a result of the proposed removal of the sales tax exemption on the import of raw materials and inputs used in the production of export goods under the “export facilitation scheme.”
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