BUDGET 2020 21 PAKISTAN / EXPLAINED

Simplification of the withholding tax regime some of the withholding tax provisions are deleted. This measure would reduce the cost of the compliance of taxpayers, enhance the control of FBR over the withholding tax regime and would be help in promoting ease of doing business.

Enhancement of threshold for becoming prescribed person for withholding of tax on supplies, services and contracts from fifty to hundred million rupees and a similarly threshold of hundred million rupees is being prescribed for sales tax registered person to become a withholding agent.

Where a person fails to furnish or update a taxpayer’s within the due date or time period specified in sub-section (3) of section 114A or within the date as extended by the Board under section 214A, such person shall not be included in active taxpayer list for the latest tax year ending prior to the aforesaid due date or extended date. Provide that without prejudice to any other liability under this ordinance, such person shall be included in the active taxpayer list.

The bill also seeks to reduce the tax rates by 50% on capital gains arising on disposal of immovable property. This is in line with the Government’s vision to promote construction industry and to provide stimulus for the growth in economy as construction sector provide employment to a number of sub-sectors. For more detail watch the video.

 

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