Tax concessions to Utility Stores, cinemas, cigarette companies to be withdrawn

The government has suggested abolishing tax concessions and exemptions granted to different sectors in the federal budget for the next financial year (FY), 2025-26, reported 24NewsHD TV channel on Tuesday.

Quoting its sources, 24News TV channel reported that these included the concessions given to cinemas, venture capital companies, manufacturers of cigarettes, drug distributors, utility stores, oil tanker services, thread traders and the exemptions given during the coronavirus pandemic.  

The government had given concessions to cinemas in 2021.

Sources informed that there was a proposal to levy one per cent tax on shares, cash and bank balance exceeding Rs1 billion.

There was also a proposal to abolish withholding tax on the distributors of cigarettes and medicines, they said, adding that the imposition of six per cent tax on non-registered distributors of cigarettes had also been suggested. 

Likewise, sources informed, there was a suggestion to abolish one per cent tax on drug distributors and levy six per cent standard tax on them instead.

Similarly, a proposal had been put forward to tax the profits generated from the sale of shares and securities.   

Sources elaborated that the imposition of standard tax on tea, salt, dry milk and sugar, which were supplied to utility stores had also been recommended.  

Likewise there was also a recommendation, sources explained, to levy standard tax on thread traders. 

Reporter: Ashraf Khan