Salient Features of Pakistan’s Budget 2018-19
The federal budget was presented on 27th April 2018 by Minister for Finance, Revenue and Economic Affairs, Dr. Miftah Ismail. The total outlay of budget 2018-19 is estimated at Rs 5,932.5 billion.
The budget session started at 5 pm and the opposition leaders initially walked out and recorded protest while the federal minister was presenting the federal budget 2018-19.
- Individuals income exempted upto 12 lacs. A nominal tax of 1,00 rupees will be levied on annual income of 4 lakh to 8 lakh while Rs. 2,000 will be taxed on income of aove than 8 lakh and below 12 lakh.
- Tax on individual income from 12 lacs and above will be taxed as per slab which has been decreased.
- Data mining introduced for finding new tax payers.
- Remittance upto 100 thousand dollars are exempted from any sort of investigations and tax. Any amount above this value could be investigated by tax agencies.
- Immovable assets: The government can purchase the immovable property by paying the double the price of value mentioned in registered deed, within six months of the registration.
- FBR rate for property valuation stands abolished from 1st July 2018.
- Filer tax rate will be 1% against property sale and purchase.
- GST exemptions same as per last year.
- 5 Sectors under SRO 1125 at 0 rated
- Exports refund will be paid within 12 months 1/7/2018
- Corporate tax decreased to 25% upto 2023
- REIT schemes will have flat 5% income tax rate.
- Non Filer bank transactions tax rate reduced to 0.4%
- Audit of companies will be allowed once in 3 years.
- Super Tax to be decreased by 1% each year to end it up.
- AOP slab decrease to 30%
- Undistributed profit decrease to 5%
- Tax on bonus shares abolished
- Dividend tax decrease to 5%
- Now with holding on services would be above Rs. 30000/- and on supplies above Rs. 75000/-