Dr Alvi gives approval on advice of prime minister; ordinance signed under Article 89(1) of the constitution
A representational image of taxes. — The News/File
Dr Alvi gives approval on advice of prime minister.
Ordinance signed under Article 89(1) of the constitution.
Chnages made to Sales Tax Act 1990, Income Tax Ordinance 2001.
ISLAMABAD: President Dr Arif Alvi Monday has signed the Tax Laws (Second Amendment) Ordinance, 2022.
According to a statement issued by the President's Office, Dr Alvi gave the approval to the Ordinance on the advice of the prime minister under Article 89(1) of the constitution.
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Under the Ordinance, the amendments have been made to the Sales Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act 2005 and Finance Act 2022.
The amendment includes:
Taxes worth Rs36 billion were imposed on cigarettes and tobacco
The tax rate on tobacco increased from Rs10 to Rs390 per kg
Duty on branded cigarettes increased within a range of Rs200 to Rs600
Taxes on cigarette brands falling under tier-I increased from Rs5,900 to Rs6,500
Taxes on cigarette brands falling under tier-II increased from Rs1,850 to Rs2,050
Instead of Rs42 billion traders will be charged Rs27 billion on electricity bills
5% sales tax will be applicable on small traders whose monthly electricity bill is Rs20,000
Electricity bills of traders which are more than Rs20,000 per month will be applicable to a 7.5% tax
Overseas Pakistanis will be exempted from taxes on any allowances
Taxes exempted on an agricultural diesel engine, agricultural machinery, motor vehicle used for public transportation and carriage of goods
Taxes are also exempted on a motor vehicle held in Pakistan by a foreign diplomat or a foreign diplomatic mission
Income tax on diplomats “mistakenly imposed” in the federal budget abolished
Tax exemption restored on Kuwait Foreign Trading Contracting and Investment Company