LAHORE: In order to facilitate the documentation of the economy in Punjab, all services under the Punjab Revenue Authority (PRA) will be brought under the tax net.
The tax rate on all services included in the tax net should be uniform. The inclusion of exempt services in the tax net with a nominal rate will ensure the promotion of a documented economy.
The facility of reduce rates on sales tax on services will be continued for those paying through credit or debit cards. We are well aware of the problems faced by farmers. A significant relief will be given to them in the next budget.
These views were expressed by Punjab Finance Minister Mujtaba Shuja-ur-Rehman while presiding over the fourth meeting of the Resource Mobilization Committee 2024-25. The provincial minister informed the committee that the Board of Revenue is reviewing the tax rates after five years. A formula will be determined for changing tax rates under BOR, which will automatically increase tax rates after a certain period.
He said that stamp duty is a provincial tax, and the FBR rates are affecting the revenue collection. The provincial minister directed the Board of Revenue to rationalize the tax rate on stamp duty. Rehman informed the provincial ministers that the enforcement under PRA has also affected revenue collection in the last five months but hopes that PRA will achieve its target.
The provincial minister directed the Additional Secretary Finance to bring the proposed amendments to the Punjab Revenue Authority Act 2012 for approval as soon as possible so that they can be implemented before the start of the new financial year. He said that all collections under PRA will be made fully online.
The meeting was attended by Minister for Communication and Works Malik Sohaib Bharath, Minister for Transport Bilal Akbar Khan, Additional Secretary Finance, Member Board of Revenue, and Chairman PRA, among others. The Member Board of Revenue presented proposals for reviewing tax rates on agricultural land and stamp duty, while proposals for uniform taxation and promotion of a documented economy under PRA were also presented.
Copyright Business Recorder, 2024