Being referred as Mini-Budget, salient features of Finance Supplementary (Second Amendment) Bill of 2019

Finance Minister Asad Umar presented the third finance bill for the current fiscal year during the National Assembly session held on Wednesday, 23rd January.

With many salient features, the ‘mini-budget’ was termed as — technically the Finance Supplementary (Second Amendment) Bill of 2019, was presented with an aim that would help generate more revenue for the government.

According to the document, Cellular mobile phones or satellite phones to be charged on the basis of import value per set, or equivalent value in rupees in case of supply by the manufacturer.

According to details, Rs 400 tax will be applicable on mobile phones worth Rs10,000; Rs4000 tax on phones of price Rs28,000; Rs6000 tax on phone worth Rs60,000; Rs8000 tax on phone worth Rs105,000
and Rs23000 tax on the phones worth Rs150,000. While Rs41,000 tax on the phones worth more than Rs150,000.

Salient features of Finance Supplementary (Second Amendment) Bill of 2019:

• Tax on income generated from loans to small businesses, agriculture sector and low-income housing to be reduced from 39pc at present to 20pc.
• Introduction of interest-free revolving credit of Rs5 billion (qarz-i-husna)
• Withholding tax on bank transactions waived off for tax filers.
• Ban on purchase of vehicles for non-filers lifted for new locally manufactured cars up till 1300CC capacity, but higher taxes will apply.
• Small businesses exempted from submitting withholding tax returns every month; will do so only twice every year.
• Rs20,000 fixed tax on marriage halls reduced to Rs5,000.
• Pilot scheme to be introduced in Islamabad to facilitate traders in filing and paying taxes.
• Duty on newsprint abolished completely.
• Investment in solar panels and wind turbines to be exempt from duties and taxation for five years.
• Reduction and abolishment (in some cases) of duties on raw materials to support export industries.
• Super tax on non-banking companies to be abolished from July 1, 2019.
• Continuation of 1pc per annum reduction in corporate income tax.
• Capital loss carry-over to be allowed for 3 years (stock trading).
• 0.02 percent withholding tax on trading to be abolished.
• Import duties on cars with engine capacity of 1800CC and above to be increased.
• Taxes and duties on mobile phones rationalized: taxes on budget sets to be reduced, high-end sets to become more expensive.
• Machinery for greenfield projects (including renewables) to be exempt of customs duty, sales tax and income tax (for five years)