Following are the revenue measures that have been announced by Federal Board of Revenue (FBR) in the budget 2018-19:
- Carry forward of depreciation losses:
At present, unabsorbed devaluation misfortunes can be conveyed forward uncertainly until the point when they are totally assimilated/balanced against business salary. This tax administration prompts installment of less or nil tax liability for a long time. The set off of presented devaluation misfortunes have now been restricted to the degree of fifty for every penny of the business pay for a Tax Year aside from in cases where the taxable wage is up to Rs. 10 million. Subsequently, citizens will in any case be qualified for conveying forward unabsorbed deterioration misfortunes inconclusively, in any case, such convey forward will be stumbled over a more noteworthy number of years.
- Withholding tax on payments remitted abroad through credit/debit/ prepaid cards:
Credit cards are being used to pay for remote travel, lodging, shopping and so on and furthermore for web based shopping from traders outside Pakistan. This outcomes in outward stream of remote settlement through the banks issuing such credit/platinum cards. There is, likewise, a need to report such exchanges to supplement endeavors pointed towards widening of the tax base. Banks issuing credit/platinum cards will now be obliged to gather 1 percent propel tax from filers and 3 percent propel tax from non-filers in regard of credit/check card exchanges bringing about outward stream of remittances from Pakistan.
- Tax at import stage on commercial importers:
Presently, the tax is collected under segment 148 of the Income Tax Ordinance, 2001 from business merchants at the import stage is last tax, hence, business shippers are not required to record their arrival of pay and process their taxable wage. This prompts under-invoicing, local exchange evaluating and avoidance of tax. Tax gathered from business merchants at the import stage might now constitute least tax rather than conclusive expense, in this manner, business shippers should be required to document their profits of wage portraying their taxable income(s). This measure is additionally a stage towards slow elimination of the last tax administration.
- Rationalization of withholding tax rates for non-filers:
FBR has reliably embraced the approach of making a qualification amongst consistent and resistant citizens. So as to improve the cost of working together for non-filers, withholding tax rates have been expanded for non-filers on account of provisions/offer of products and contracts under area 153 of the Ordinance. For deals/supplies, the rate of tax for non-filers has been expanded from 7 percent to 8 percent on account of organizations and from 7.75 percent to 9 percent on account of people not being organizations. For contracts, the rate of tax for non-filers has been expanded from 12 percent to 14 percent on account of organizations and from 12.5 percent to 15 percent on account of people not being organizations.
- Minimum tax for marriage halls:
Marriage halls, business yards and so on are ordered to gather 5 percent of the bill in regard of capacities under segment 236D of the Ordinance. With a specific end goal to enhance and streamline the accumulation of this tax, marriage halls are currently required to gather either 5 percent of the bill or Rs.20, 000/ – per work in significant urban communities and Rs.10, 000/ – per work in the rest of the urban communities, whichever is higher.
- Non-recognition of capital gain on gift to be restricted to relatives:
No gain or misfortune is taken to emerge on the transfer of a benefit by reason of an endowment of the advantage under segments 37 and 79 of the Ordinance i.e. it is dealt with as a non-acknowledgment occasion, consequently, no obligation for capital gains tax emerges. Such non-acknowledgment might now be confined to blessings given to “relatives” of a person as characterized in segment 85(5) of the Income Tax Ordinance, 2001.
- Payments made for services to permanent establishments of nonresidents:
Tax deducted on installments to inhabitant people for rendering or giving of administrations under area 153(1) (b) of the Ordinance constitutes least tax though tax deducted on comparable installments being made to changeless foundations of non-occupant people does not constitute minimum tax. This treatment is biased to occupant people as they are at a similar burden viz-a-viz non-inhabitants having lasting foundations in Pakistan. Keeping in mind the end goal to give a level playing field, the tax deductible on administrations rendered by lasting foundations of non-inhabitant people should likewise be dealt with asminimum tax.
- Tax on Dealers Margin of a Petrol Pump Operator:
Presently, OMC’s pitching oil based commodities to an oil pump administrator deduct tax @ 12 percent from filers and 17.5 percent from non-filers on commission or markdown permitted to an oil pump administrator. As the costs of fast diesel are to be deregulated, tax on merchant’s edge should now be gathered on ex-terminal deal cost of HSD (barring merchant’s edge) at the rate of 0.5 percent from a filer and 1 percent from a non-filer.