August 11, 2022

Budget approved: Levy on petroleum products, income tax relief refunded, imported mobile phones expensive

As the National Assembly session began two hours late for approval of the budget, members of the ruling coalition MQM staged a protest.

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The National Assembly of Pakistan has passed Finance Bill 23-2022 by a majority vote. According to which, a levy of Rs 50 per liter has been imposed on petroleum products. However, Finance Minister Muftah Ismail has said that at present the levy is zero and a levy of Rs 50 will not be levied.

As the clause-by-clause approval of the Finance Bill began in the National Assembly on Wednesday, Minister of State for Finance Ayesha Ghous Pasha said, “We have introduced taxes that will be levied on the wealthy. This is done so that the common man is not burdened.

“The changes we have made were agreed upon by the previous government with the IMF,” he said. We are only living up to our promises as a responsible country. “

Ayesha Ghous Pasha moved an amendment of Rs. 50 per liter petroleum levy on petroleum products which was approved by the House by a majority vote.

On this occasion, Finance Minister Muftah Ismail explained that at present the levy is zero. A lump sum of Rs 50 per liter will not be levied. The National Assembly has given the government the power to levy on petroleum products.

The National Assembly also approved a provision regarding collection of sales tax from traders through electricity bills.

Tax relief refund for salaried class

The National Assembly, while amending the Finance Bill, also approved the changes in the tax slab by abolishing the income tax relief given to the salaried class while presenting the budget, after which the salaried class will be taxed on their income at the following rate. Have to pay
Under the first slab, no tax is levied on those earning Rs 6 lakh per annum. Therefore, if one’s income is less than Rs 600,000, he does not have to pay anything in terms of income tax. However, returns must still be submitted.

In the second slab come those earning Rs. 600,000 to Rs. 12 lakh. In this regard, they will be taxed at 2.5 percent. That is, if the total income is 1.2 million, then an annual tax of Rs 30,000 will have to be paid.

The third slab carries people worth Rs 12 lakh to Rs 24 lakh. Under this slab, the fixed tax up to Rs. 12 lakhs will be Rs. 15,000 while the amount between Rs. 12 lakhs and Rs. 24 lakhs will be taxed at the rate of 12.5%. That is, one lakh 65 thousand rupees will be the income tax.

Under the fourth slab, the annual income has been kept at Rs 2.4 million to Rs 3.6 million. The tax on it is fixed at Rs. 16 lakhs up to Rs. 24 lakhs while 20 per cent tax is to be paid on amount above Rs. 24 lakhs and less than Rs. 36 lakhs.

For example, if one’s income is Rs. 35 lakhs, then he will have to pay Rs. 1,65,220,000, ie a total of Rs.
The fifth slab includes persons with an income of Rs 3.6 million to Rs 6 million who will be taxed at Rs 450,000 on income up to Rs 3.6 million and 25 per cent tax on income between Rs 3.6 million and Rs 6 million. Have to give

If the total income of a person is 5.5 million, then he will have to pay Rs. 475,000 in addition to Rs.
The fixed tax on those earning Rs 6 million to Rs 12 million is Rs 1,050,000, however, those earning more than Rs 6 million will be taxed at 32.5%. According to this calculation, if one’s income is one crore, then he will have to pay Rs. 13 lakh in addition to Rs. 10 lakh five thousand.

The seventh slab is the last slab of the salaried class which includes those earning more than Rs. 12 million. Under this, income up to Rs. 12 million will be taxed at Rs. 29,055,000 while the amount above that will be taxed at 35%.

In other words, if the income of such people is 20 million, they will have to pay tax of Rs. 28 lakh in addition to Rs. 29 lakh 55 thousand.

Super tax

The National Assembly also approved the imposition of one to four per cent super tax on annual income of Rs. 150 million to 300 million. Under which 10 per cent super tax will be levied on 13 sectors with an annual income of more than Rs 300 million. Airlines, Automobiles, Beverages, Cement, Chemicals, Cigarettes, Fertilizers, Steel, L

NG terminals, oil marketing, oil refining, pharmaceuticals, sugar and textiles will be subject to 10% super tax. The banking sector will also be subject to 10% super tax in the financial year 2023.
Imported mobile phones more expensive

With the approval of the Finance Bill, a levy of Rs 100 to Rs 16,000 has been imposed on the import of mobile phones. Rs 100 levy on 30 30 mobile phone, Rs 200 levy on فون 30 to 100 100 mobile phone levy, Rs 600 levy on imported فون 200 mobile phone, Rs 1800 levy on 350 350 mobile phone, 500 500 mobile Four thousand levies will be levied on the phone.

The budget has imposed a levy of Rs 8,000 on mobile phones worth 700 700 and Rs 16,000 on mobile phones worth 701.

In the budget, duty on imported equipment for cinema, film production and post production has been abolished. Duties on projectors, screens, 3D glasses, digital loudspeakers, amplifiers, music distribution systems and other items have also been abolished.

Penalties on retailers

It has been decided to impose penalty on retailers who do not connect their business to FBR computerized system by amending the Finance Bill. In case of default for the first time, there will be a fine of Rs 5 lakh. For the second time after 15 days, a penalty of Rs 1 million will be levied on default. 15 days after the second default on the violation

A fine of Rs 20 lakh will have to be paid. For the third time, 15 days after the default, the fine will reach Rs 3 million. The business of a retailer violating the law will also be sealed.

MQM protest

As the National Assembly session began two hours late for approval of the budget, members of the ruling coalition MQM staged a protest.

Without naming the minister, MQM leaders Sabir Qaim Khani and Salahuddin said, “There is no electricity in our city of Hyderabad. The airport is inactive and the railway is destroyed. This attitude will not make this government work.

“It doesn’t take long for the opposition to move from government benches to opposition benches,” he said. We don’t even spit on the kind of respect we are being given. We walk out against this behavior.
With the protest of MQM members, the federal ministers arrived and requested not to walk out. Meanwhile, Sabir Qaim Khani got angry and shook the hand of Federal Minister Ayaz Sadiq.

“We have paid a heavy political price by supporting this government,” he said. However, later through talks, the federal ministers managed to stop the MQM from walking out.

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