The federal budget 2023 has introduced several tax proposals that will impact individuals and businesses in Pakistan. In this article, we will explore some of these proposals and their potential implications.
- Vehicle registration tax
The government has proposed a 100% increase in the vehicle registration tax for non-filers. This tax will not apply to small vehicles with engine capacities below 1000cc. This proposal aims to encourage tax compliance among vehicle owners and increase revenue for the government.
- Property tax
The budget has also proposed a 5% increase in property tax for non-filers. This tax will apply to individuals who own property but do not file their tax returns. The aim is to incentivize tax compliance and generate more revenue for the government.
- Flying allowance
Previously, the flying allowance was taxed at a rate of 7.5%. The budget proposes to include it as part of the salary, which will result in an effective increase in the tax rate on this allowance. This proposal aims to broaden the tax base and increase revenue for the government.
- Capital Gain Tax
The budget proposes to abolish the Capital Gain Tax for retired and serving army officials. This proposal aims to provide relief to retired and serving army officials and encourage investment in the country.
It is important to note that these proposals are subject to approval by the parliament and may be modified before they become law. Additionally, the tax rates and thresholds mentioned in this article are for informational purposes only and may be subject to change.
In conclusion, the federal budget 2023 proposes several tax changes aimed at encouraging tax compliance, broadening the tax base, and generating more revenue for the government. It is important for individuals and businesses to stay informed and consult with tax experts to ensure compliance with the law and minimize their tax liabilities.