Federal budget for 2023-24 comes into effect
Tax on people drawing monthly salary of Rs200,000 upped by 2.5%: Advance income tax on people selling immoveable properties also hiked
By News Desk
July 1, 2023 02:51 PM
The federal budget, levying additional taxes of Rs438 billion, for the financial year (FY) 2023-24 has come into effect today (July 1, 2023), reported 24NewsHD TV channel on Saturday.
Tax on people, drawing over Rs200,000 in salary every month, has been increased by 2.5 per cent in the budget.
Similarly, the budget announces 0.6 per cent tax on the people not included in the Active Taxpayer List (ATL), and drawing Rs50, 000 in cash from banks every day.
The tax will take effect from today.
Likewise, advance income tax has been increased from two to three per cent on those selling their immovable properties and their names are included in the ATL.
For non-ATL persons, tax has been increased from four to six per cent.
The budget says that the sale of property of over Rs5 million will be done through banks.
Likewise, five per cent tax has been levied in the budget on fertilizers.
Similarly, federal excise duty on juices has been increased from 10 to 20 per cent, while tax on the sale and purchase of property has been increased from one to two per cent.
Likewise, tax has been levied on luxury vehicles.
Similarly, a target of bringing one million people under the tax net has been set in the budget.
The budget abolishes regulatory duty on IT-related equipment.
It also abolishes regulatory duty on the import of, panels monitor, projectors, steel bar rods and products made of glass.
However, barring LED bulbs, the budget imposes regulatory duty on all bulbs.
Likewise, withholding tax on the use of debit and credit cards abroad has been increased; 10 per cent tax has been imposed on debit and credit cards non-filers while five per cent on filers.
Those hiring a foreigner as their domestic servant will have to pay Rs200,000 in advance adjustment tax every year.
Incentives have been announced in the budget for the FY 2023-24 for those setting up agro-based industrial units.
These include income tax concession for five years for those setting up such units from July 1.
Tax concession for PATA and FATA has been extended for one more year.
One per cent final tax has been levied on the online export of agricultural products and minerals.
Similarly, the budget lists tax concessions for overseas Pakistanis investing in real estate sector; they will get two per cent tax concession in case they invest in the sector.
Reporter: Waqas Azeem