The Federal Board of Revenue (FBR) has clarified that the government has not imposed new taxes of Rs 12 billion under the Finance Supplementary (Second Amendment) Bill, 2019. According to a press release issued by the FBR Thursday, the FBR has rejected reports that the government has imposed new taxes of Rs 12 billion. No new tax has been imposed under the Finance Supplementary (Second Amendment) Bill, 2019.

Federal Excise Duty is already imposed on imported cars and jeeps of engine capacity exceeding 1800cc at 20 percent. In order to further discourage the import of such luxury cars and jeeps, it is proposed to enhance the rate of Excise Duty from 20 percent to 25 percent, for such cars and jeeps up to capacity 3000 cc and to 30 percent for cars exceeding 3000 cc. The government has estimated to generate Rs 2-3 billion from the said measure.

Under the Finance Supplementary (Second Amendment) Bill, 2019, the government has taken steps to provide relief of over Rs 10 billion. The FBR will suffer net revenue loss of Rs 6.8 billion from the relief provided to the business community under the said Bill.-PR

Copyright Business Recorder, 2019