ISLAMABAD: Minister for Information and Broadcasting Fawad Chaudhry on Friday asserted that the government has not imposed any tax on cinema and film production machinery in the Finance (Amendment) Act 2021.
Taking to Twitter, the Information Minister revealed that heavy taxes have been imposed on importing foreign dramas and taking foreign models in advertisements. “Its main purpose is to protect Pakistan’s film industry and artists,” he added.
فنانس ترمیمی ایکٹ میں جہاں ایک طرف سینما اور فلم پروڈکشن کی مشینری پر ٹیکس نہیں ہے وہیں غیرملکی ڈرامہ درآمد کرنے اور اشتہارات میں غیرملکی ماڈلز لینے پر بھاری ٹیکس عائد کیا گیا ہے اس کا بنیادی مقصد پاکستان کی فلمی صنعت اور فنکاروں کو تحفظ فراہم کرنا ہے
— Ch Fawad Hussain (@fawadchaudhry) December 31, 2021
A day earlier, Finance Minister Shaukat Tarin presented the Finance (Supplementary) Bill 2021 — or the mini-budget as the opposition calls it — in the National Assembly (NA) amid uproar from the opposition benches.
The bill’s approval is necessary to ensure Pakistan’s sixth review of the $6 billion Extended Fund Facility gets cleared by the International Monetary Fund’s executive board on January 12, paving the way for the disbursement of about $1bn tranche.
The State Bank of Pakistan (SBP) Amendment Bill 2021 was also presented in the House, which was referred to the relevant standing committee for necessary vetting.
According to the finance ministry’s proposal, the government will tax approximately 150 goods at a rate of 17%. Therefore, goods that were currently either completely exempt from General Sales Tax (GST) or being taxed at 5% to 12% would now be taxed at 17%.
The income tax rate on mobile phone calls is expected to increase from 10% to 15%. Meanwhile, the GST rate on cars above 850cc will go up to 17% and the tax on the import of electric vehicles in CBU conditions will increase from 5% to 17%.
Business-to-business transactions will go up from 16.9% to 17%. Zero-rating available on supplies of raw materials for imported milk would be withdrawn and be taxed at 17%.
Supplies to duty-free shops will be taxed at 17%. As they will be taxed for the first time, there are no revenue estimates. The finance bill also proposes that bread prepared in bakeries, restaurants, food chains and shops be taxed at a 17% rate.
The bill increases the tax collection target from Rs5,829 billion to Rs6,100 billion for the remaining financial year. The government has also reduced the budget for development programmes by Rs200 billion.
