However, this limit would not be applicable on the commercial property. In case the value of property is not recorded, CVT will be collected at Rs 50 per square yard of the land area. The urban areas falling within the limits of Islamabad Capital Territory, cantonment board or municipal body and areas defined under the Urban Immovable Property Tax Act, 1958.
The withholding tax on the cash withdrawal above Rs 25,000 from banks has been enhanced from 0.1 percent to 0.2 percent. The limit of Rs 25,000 per transaction has been changed to per day.
The withholding tax and CVT applicable on the stock exchanges has been doubled. The withholding tax on trading transactions made at the stock exchanges has been raised from 0.005 percent to 0.01 percent. The capital value tax (CVT) on the stock exchange transactions has been raised from 0.01 percent to 0.02 percent.
The exemption available to Mutual Funds on making investment in carryover trade (COT), (Badla) in stock exchanges has been withdrawn.
The exemption on corporatisation of individual stock exchange membership would continue in 2006-07.
The withholding tax on import of motor cars and fertiliser by manufacturers proposed to be made adjustable and minimum income tax on turnover on Murabaha financing has been proposed to be taken away.
The income tax exemption available to the venture companies has been extended up to 2014 and depreciation at the rate of 30 percent for the machinery producing IT products has been allowed by the income tax department.
The government has also decided to encourage investment in the trading houses in the country. Minimum income tax in the cases of Trading Houses proposed to be suspended for first 10 years.
The government has also given exemption of income tax on the income of Real Estate Investment Trust (REIT). Income would be exempted if 90 percent of the income is distributed to members.
The simplification of salary taxation has been done by applying effective rate on gross salary. Basic exemption limit proposed to be raised to Rs 150,000 with tax rates ranging from 0.25 percent to 20 percent on the gross salary. The raise to Rs 150,000 is technical adjustment, which would not result in any benefit to the taxpayers.
Similarly, the tax rates for non-salaried persons proposed to be rationalised, would range between 0.5 percent to 25 percent.
The government also announced special tax concession for women taxpayers. The basic exemption limit has been proposed to be raised to Rs 200,000 for salaried and to Rs 125,000 for non-salaried women taxpayers.
The rebate for teachers and researchers has been extended to officers posted in government training institutions, while the tax rebate for senior citizens has been reduced from age limit of 65 to 60 years. While comprehensive changes have been made in the withholding tax regime, the withholding tax on commission and brokerage has been rationalised and a single rate of 10 percent has been levied under the Presumptive Tax Regime (PTR). The PTR has been extended to services as well.
The withholding tax on various imports has been rationalised and the levy on supplies of rawhides and skins proposed to be withdrawn to provide level playing field. Moreover, the rate of withholding tax rate has been proposed to be enhanced in cases where NTN/CNIC is not disclosed by the taxpayers.
The deduction in corporate tax rates introduced through Finance Act would continue.