ISLAMABAD: The National Assembly has passed Finance Bill 2022, bringing the country closer to the revival of the $6 billion loan programme.
The session was chaired by NA Speaker Raja Pervaiz Ashraf. The passage of the budget for the fiscal year 2022-2023 brings the government one step closer to the revival of the stalled International Monetary Fund (IMF) programme.
The NA session gave the approval to impose the petroleum levy of Rs50 per litre in a gradual manner. Finance Minister Miftah Ismail said that currently there is zero levy on the petroleum products in the country. Rs50 petroleum levy will not be imposed in one go.
Last week, Miftah Ismail, in his budget winding-up speech, announced additional taxes that are expected to generate Rs466 billion, which helped the government reach an understanding with the IMF for the bailout package
The finance minister said that to curtail the previous four record budget deficits during PTI’s tenure, taxes will be collected from the rich. “The revenue from the rich will help the government achieve its target of budget surplus — which has been committed to the IMF,” he added.
Moreover, to decrease the country’s reliance on other countries for funds, Miftah announced a list of taxes that would be collected from the elite class and large-scale industries.
Taxes on salaried class
An amendment pertaining to taxes imposed on the salaried class was also approved. According to the amendment, those earning Rs1.2 to Rs2.4 million will now pay a fixed tax of Rs. 15,000 plus an additional 12.5% of the amount exceeding Rs1.2 million. The tax rate for Rs2.4 million to Rs3.6 million is set at Rs136, 000 and 20% of the amount over Rs2.4 million.
Those earning between Rs3.6 million to Rs6 million will have to pay Rs405, 000 plus 25% of the amount exceeding Rs3.6 million. For income between Rs6 million to 12 million, the tax will be Rs1 million in addition to 32.5% of the amount exceeding Rs6 million. Where the taxable income exceeds Rs12 million, the tax is Rs2.9 million plus 35% of the amount exceeding Rs12 million.
Similarly, for those earning between Rs0.3 to Rs0.5 million, monthly a tax of Rs0.405 million will be applicable, in addition to the 25% tax to be paid on the amount exceeding Rs0.3 million. For individuals earning between Rs0.2 million and Rs0.3 million monthly this will stand at Rs0.165 million plus 20% on the amount exceeding Rs0.2 million. In the same manner, for those earning a monthly salary of Rs0.1 to Rs0.2 million, a tax of Rs15,000 plus 12.5% of the income exceeding Rs0.1 million will be imposed.
Taxes on industries
Furthermore, the assembly approved a “super tax” of 1 to 4% on annual income between Rs0.15 billion to Rs0.3 billion and 10% on annual income exceeding Rs0.3 billion.
Additionally, a 10% “super tax” will be levied on airlines, automobiles, beverages, cement, chemical, cigarette, fertiliser, steel, LNG terminal, oil marketing, oil refining, pharmaceutical, sugar and textile industries.
A levy was also imposed on imported mobile phones. Now, a tax of Rs100 will be levied against imported phones worth up to $30, Rs200 on mobile phones worth $30 to $100, and Rs600 on imported phones worth up to $200 will be imposed. While for imported mobile phones costing up to $350, a tax of Rs1800, for a $500 worth phone a tax of Rs4,000, for a $700 worth phone a tax of Rs8,000 will be imposed. Lastly, for imported mobile phones costing above $701, Rs16,000 will be levied.
A 10% super tax will also be levied on the banking sector in the financial year 2023. A provision was also passed regarding the collection of sales tax from traders through electricity bills.
