Finance Minister Ishaq Dar has clarified that the government has not announced any amnesty scheme for overseas Pakistanis and the new law of taxing windfall gains profits would be invoked against industries that exploit consumers to make extraordinary gains.
Answering a question on (Additional tax on certain income, profits, and gains) under new section 99D of the Income Tax Ordinance 2001 at the post-budget press conference on Saturday, the minister stated that the provision would be invoked against the sectors which would put an unnecessary financial burden on their consumers. We have not identified sectors, but the tax would be imposed on those sectors or segments that would exploit their customers to make extraordinary gains.
He said that it was a well thought decision and tax should not be more than 50 percent after the rationalization of the Super Tax. The additional taxation of Super Tax would generate Rs. 31 billion in 2023-24.
The government would be empowered to invoke the provision of section 99D of the Income Tax Ordinance 2001 whenever required. The windfall gain tax will be imposed on those sectors earning extraordinary profits by exploiting their customers. In this regard, the FBR will have the necessary law available for enforcement.
Dar said the government has received requests from the entire business community to increase the monetary limit of foreign remittances remitted from outside Pakistan. This was a genuine and legitimate demand of the business community which should be supported. The government has enhanced the monetary limit of foreign remittance remitted from outside Pakistan from five million rupees to the rupee equivalent of $100,000 for the purpose of section 111(4) which places a bar on asking nature and source of unexplained income/assets.
“The amendment in section 111 of the Income Tax Ordinance is not a new measure, but the section has been amended. The amendment in section 111 of the Income Tax Ordinance2001 is not an amnesty scheme”, Ishaq Dar said.
The minister stated that the Federal Board of Revenue (FBR) would be able to achieve the assigned revenue collection target of Rs. 9.2 trillion for 2023-24. The taxation measures of Rs. 200 billion have been taken to encourage documentation and put an extra burden on non-filers and those operating in the informal economy. Out of total taxation measures of Rs. 200 billion, the net income tax measures stand at Rs. 175 billion. Most of the measures would encourage documentation of the economy and the removal of anomalies in the taxation system.
He said that the government has not imposed a 9 percent sales tax on processed milk in the budget (2023-24). It was an old paper that was not approved by the government. Similarly, he dispelled reports that the sales tax has been imposed on the import of edible oil. The sales tax on the import of edible oil has not been abolished.
Source: Pro Pakistani