No new taxes, tax relief of Rs45b

ISLAMABAD – The federal government has not imposed any tax in the annual budget for 2020-21 and provided tax relief worth of Rs45 billion in terms of different taxes.

The federal government has set tax collection target at Rs4,963 billion for the next fiscal year as compared to projected Rs3,900 billion of the ongoing year. The officials of Federal Board of Revenue (FBR) said that government would achieve the target without new taxes.

The government has proposed to increase the rate of Federal Excise Duty (FED) on cigars, cheroots, cigarillos and cigarettes from 65 percent to 100 percent of retail price. Meanwhile, it has also recommended increasing in the rate of FED on filter rods from Rs0.75 to Rs1 per filter rod. Similarly, it has suggested to levy FED on e-liquids of electric cigarettes @ Rs 10 per ml. The government has proposed imposition of FED on caffeinated energy drinks @ 25 percent.

The government has also proposed to impose tax on double cabin pick-up vehicles as per other cars as wealthy people use these pick-ups as a status symbol. It has recommended levying of FED at 7.5 percent ad valorem in case of locally manufactured double cabin (4×4) pick-up vehicles and 25 percent in the case of imported ones.

Source link