Saturday , September 26 2020
Breaking News
Home / Islamabad / Budget spells steps to check miscalculation of income, generate revenue
Budget spells steps to check miscalculation of income, generate revenue

Budget spells steps to check miscalculation of income, generate revenue

ISLAMABAD: The pragmatic measures envisaged in the budget to curb misclassification of income earned by taxpayers will generate Rs17 billion in 2014-15.

According to the budgetary revenue generating measures, the proposal of alternate corporate tax will generate Rs15 billion during next fiscal year. The tax on bonus shares will also generate Rs15 billion while these measures will increase cost business for non-compliant and unregistered persons which will generate Rs14 billion in 2014-15.

Similarly, the expense allocation of banking companies would result in generation of Rs13 billion. The enforcement of returns of total income in FTR cases will generate Rs13 billion. The rationalisation of rates of tax deduction on services will generate an estimated revenue of Rs12 billion.

The adjustable advance tax on purchase of immovable property will generate around Rs10 billion in 2014-15. The adjustable advance tax on high end domestic electricity bills will generate Rs3 billion. The adjustable advance tax on first/club international air tickets would generate Rs2 billion. The rationalisation of rates of advance income tax on motor vehicles under section 234 would generate Rs2 billion. The adjustable advance tax on transfer of private vehicles up to five years would generate Rs2 billion. The taxation of debt securities traded on stock exchanges would generate Rs500 million.

The increase in rates of tax deducted from advertising agencies would generate Rs6 billion. The withholding tax on payment to foreign news agencies would collect Rs3 billion. Large trading houses to withhold tax from suppliers would generate Rs6 billion. The withdrawal of exemption to Hamdard Laboratories would generate Rs1 billion. The revamping of the exemption of mutual funds would generate Rs10 billion. The taxation of foreign institutional investors would generate Rs5 billion. The compulsory registration in certain cases would generate Rs5 billion.

The reduction in corporate tax rate from 34 to 33 percent would cause revenue loss of Rs7.7 billion to the national kitty. The reduction of advance tax on functions/gatherings will cause revenue loss of Rs600 million. The review of customs notification SRO 575(I)/2006 will generate Rs 12 billion; review of SRO 567(I)/2006 Rs9 billion and review of Customs SRO 565(I)/2006 would generate Rs11 billion in 2014-15. The rationalisation of customs duty on networking equipment would generate Rs 1 billion. The upward revision of customs duty on the import of used cars would generate Rs 600 million. The levy of regulatory duty on luxury goods would generate estimated amount of Rs 500 million in 2014-15.

The transposition of sales tax notification, i.e SRO 575(I)/2006 to schedules with certain changes will generate Rs11 billion. The transposition of sales tax notification i.e SRO 727(I)/2011 to newly created eight schedule with 5 percent sales tax rate would result in collection of Rs4.5 billion. The transposition of sales tax notification ie SRO 551(I)/2006 to schedules would with certain changes would generate Rs17 billion. The transposition of sales tax notification ie SRO 501(I)/2013 to schedules would with certain changes would generate additional revenue of Rs15 billion.

The proposal to rationalise sales tax rates on steel sector would generate Rs5 billion. The proposal for registration of retailers would generate Rs2.5 billion. The proposal for restricting undue claims of input tax would generate Rs 2.5 billion. The proposal for electronic scrutiny and intimations would generate Rs 3 billion. The proposal for replacement of capacity tax on aerated waters would generate Rs 2 billion. The proposal for enhancement in the rates of the FED on cigarettes would generate Rs 5 billion. The proposal for changing FED on cement from specific rate to ad valorem basis would generate Rs2.5 billion. The proposal for enhancing the FED on travel by air would generate Rs2 billion. The proposal for levying the FED on chartered flights would generate Rs500 million. The proposal for exclusion of further tax from output tax would generate Rs500 million. The proposal for rescinding SRO 69(I)/2006 would generate Rs1 billion.