The federal government has decided to impose an advance tax on foreign-produced drama serials.
Sources told ProPakistani that the Federal Board of Revenue (FBR) has proposed the government introduce an advance tax on foreign-produced drama serials in the Finance Supplementary (Bill) 2021 which will be presented to the federal cabinet meeting for approval on Tuesday.
Sources said that the tax department has also proposed the cabinet to give approval of increasing taxes on the cellular services, which is aimed at promoting digital economy, documentation, and facilitation measures by minimal amendments in the Income Tax Ordinance, 2001.
Besides this, the FBR has also proposed the government, in the Finance Supplementary (Bill) 2021, not only to streamline the zero-rating regime but also to withdraw sales tax on certain entries under the Fifth Schedule. Moreover, the FBR has also proposed to curtail the exemption regime under Sixth Schedule including the pharmaceutical sector.
The FBR has also proposed the government streamline the reduced rates of sales tax under the Eighth Schedule on certain items in order to achieve equity in the tax system. Likewise, sales tax on import of high-end mobile phones in CBU condition under Ninth Schedule is also proposed to be rationalized while the tax department has also proposed to rationalize the scope of Tier-1 retailers in the Finance Supplementary (Bill) 2021.
Sources said that the government, by fulfilling the demand of IMF, will abolish billions of rupee sales tax exemptions by taking the above-mentioned measures.
It is pertinent to note that the government, after the approval of the cabinet, will present the above-mentioned bill in parliament for approval.