Sources told Business Recorder here on Monday that Super Tax was levied through the Finance Act, 2015 @ 4% on the income of banking companies and @ 3% on the income of persons other than banking companies. Rate of 3% was only applicable if the income was above Rs 500 million in a year. Through the Finance Act, 2018, Super Tax will be omitted in a phased manner. For banking company, for the tax year 2018 the rate of tax is zero percent; for the tax year 2019, tax rate is 4 percent; for the tax year 2020, tax rate is 3 percent and for tax year 2021, the rate of tax is 2 percent.
For persons other than a banking company having income of Rs 500 million or more, for tax year 2018 the rate of tax is 3 percent; for tax year 2019, tax rate is 2 percent; for tax year 2020, rate of tax is 1 percent and for tax year 2012, the rate of tax is zero percent, the Finance Act 2018 said.
The government may bring new items under the regime of regulatory duty and also rationalize RDs on existing items to curb imports and reduce the trade deficit.
The Finance Amendment Bill may reduce income tax relief provided to salaried class, increase incidence of Federal Excise Duty (FED) on a few commodities including cigarettes and take additional measures to expand the tax base.
There is speculation that the government may increase customs duty from 2 to 3 percent on imports across the board to generate Rs25-28 billion. The measure may have impact on 7,200 customs tariff lines.