Parliaments Passes Amendments to Levy Heavy Taxes on Major Industries

The National Assembly of Pakistan has approved a 10 percent super tax on income of more than Rs. 300 million.

In addition to this, the government has also imposed a 10 percent super tax on 13 other major industries with an income of over Rs. 300 million. These include airlines, automobiles, beverages, and iron steel. Apart from this, the government approved a 10 percent tax on LNG terminals, oil marketing, oil refining, and petroleum and gas sectors.

Ten percent super tax has also been levied on the pharmaceutical, sugar, and textile sectors.

In addition to these taxes, the proposal to increase the privileges of the Chairman Senate and the Speaker has also been approved. The Standing Committee on Finance of the Senate and the National Assembly were also empowered through the bill.

Under these new approvals, the Chairman Senate and the Speaker National Assembly will be allowed to increase the privileges from time to time, whereas approval for the increase in concessions will be sought from the Standing Committee on Finance.

The National Assembly also announced that the retailers who do not connect to the commercial FBR computerized system will be penalized. In case of default for the first time, there will be a fine of Rs. 0.5 million. For the second time, after 15 days, a penalty of Rs. 1 million will be levied on default. Fifteen days after the second default, a fine of Rs. 2 million will have to be paid for the violation. The fine will reach Rs. 3 million 15 days after the third default, and non-compliant retailer businesses can also be sealed.