ISLAMABAD: The amended Finance Bill 2021 is expected to be tabled in the National Assembly today (Monday), with substantial relief to different sectors including poultry, dairy, flour products, real estate investment trusts and withdrawal of income tax on medical bills/provident funds of the government employees.
Sources told Business Recorder here on Sunday that the amended Finance Bill has been vetted by the Law Division and submitted to the National Assembly. The Federal Board of Revenue (FBR) remained open on Sunday to complete the budget exercise. The amended Bill 2021 is likely to be presented before the National Assembly on June 28.
The effective date of implementation of all taxation and relief measures is July 1, 2021 including tariff rationalisation and imposition of regulatory duties on around 80 items.
According to sources, the tax on mobile calls would generate nearly Rs20 billion. A major chunk of revenue would be generated through enforcement and administrative measures during next fiscal year.
Through the amended bill, the FBR has abolished/reduced taxes on food items and other rationalisation of taxes would result in estimated revenue loss of Rs15-20 billion in 2021-22.
In budget (2021-22), the FBR has taken measures of around Rs506 billion, including taxation measures of Rs264 billion and enforcement measures of Rs242 billion. Total taxation measures were proposed at Rs383 billion for 2021-22. Total relief measures stood at Rs119 billion. The net impact of the measures were calculated at Rs264 billion.
However, the FBR suffered revenue loss of around Rs100 billion following withdrawal of the proposal of imposing Federal Excise Duty (FED) on mobile phone calls/SMS and internet data usage. The tax on mobile phone calls beyond five minutes would be charged 75 paisa tax. This would generate around Rs20 billion in 2021-22 effective from July 1, 2021.
Therefore, the net impact of the taxation measures now stood at nearly Rs184 billion.
Copyright Business Recorder, 2021
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