Here's a list of all new tax proposals slapped in the budget

• Taxes on cigarettes, air travel for business and first-class, mobile phones, and higher-income earners have been increased.
• Out of additional taxes of Rs440b, Rs316b has been proposed through the imposition of direct taxes.
• FBR also expects to bring an additional Rs200b through administrative/effective enforcement.

ISLAMABAD: The government has slapped taxation measures worth Rs440 billion in the budget 2022-23 to meet the Rs7.004 trillion revenue collection target.

Taxes have been imposed on the immovable property, Capital Gains Tax (CGT) rates on the property have also been jacked up, a fixed tax scheme has been introduced for retailers, and a tax has also been levied on foreign property, and many others.

The taxes on cigarettes, air travel for business and first-class, mobile phones, higher-income earners, and purchasing cars above 1600cc have been increased so their prices will become dearer.

Out of additional taxes of Rs440 billion, Rs316 billion has been proposed through the imposition of direct taxes to fetch the Rs7,004 billion revenue collection target for the Federal Board of Revenue (FBR).

The FBR also expects to bring an additional Rs200 billion through administrative/effective enforcement so the tax machinery is eyeing collecting Rs640 billion in additional taxes in totality.

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FBR Chairman Asim Ahmed along with his team told reporters in a technical briefing after the announcement of the budget in the Parliament that they conveyed to the International Monetary Fund (IMF) about whole taxation measures.

When asked about Personal Income Tax (PIT) reforms agreed with the IMF, he replied that the minister of finance should be asked that question. He said that the FBR proposed 75% taxation on the direct taxes side and the remaining from all other three taxes.

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The FBR also proposed relief measures of Rs85 billion out of which it granted relief of Rs49 billion on Personal Income Tax (PIT), a structural benchmark agreed upon with the IMF on the occasion of completion of the sixth review under Extended Fund Facility (EFF).

Now Pakistan will have to get a waiver on breach of a structural benchmark on PIT from the IMF. The net revenue impact of all taxation measures will be Rs355 billion.

The FBR proposed major taxation on the immovable property to fetch Rs153 billion in the next budget as tax imposed on the immovable property.

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The FBR also slapped 2% on high-income earnings of all people including individuals, businesses, etc. for income above Rs300 million and this measure will bring a tax of Rs38 billion.

The revenue board increased tax rates on banks from 39% to 45% merging super tax and normal tax rate and it will fetch an additional Rs28 billion.

The FBR proposed an increased differential tax on the low advance to deposit ratio (ADR) of bank income attributable to all investments including T-bills on ADR from 40% to 55% will bring Rs25 billion.

Originally published in The News