ISLAMABAD:The Senate Standing Committee on Finance, Revenue and Economic Affairs on Wednesday approved various taxation proposals introduced in Finance Bill 2022.
The Committee in its second consecutive meeting chaired by Senator Saleem Mandviwala approved zero percent sales tax on agricultural tractors, 17 percent tax on locally produced coal and 3 percent value addition tax on commercial importers and manufacturers.
The committee also approved new rates of levy on mobiles phones include minimum Rs 100 on up to value of $30 and maximum Rs 160000 on above phone value of $701.
The committee also agreed on imposing of Federal Excise Duty (FED) on business class tickets from Rs 10,000 to Rs 50,000.
The committee also approved Rs 10, 000 per kg on e-cigarettes and the new rates of FED on locally manufactured cigarettes.
The new rates of locally manufactured cigarettes fixed for (Tier-I) at Rs 5,600 and (Tier-II) Rs 1,850.
The committees recommend that sales tax on electric vehicles having capacity of up to 50 kWh should be charged at the rate of 12.5 percent and above that at the rate of 17 percent.
The Committee also considered the issue faced by the business community regarding advance sale tax, capital gains on disposal of securities.
Former President, Islamabad Chamber of Commerce and Industry (ICCI), Sardar Yasir Ilyas informed the committee that the government ban inputs used in the construction sector and around Rs 250 billion projects were in pipeline.
He said that it is our request to the honorable committee to withdraw the proposal of FBR regarding increase of advance tax from 1 percent to 2 percent on filers.
He also proposed the committee to consider and approve previous regime on capital gains on disposal of securities which was 4 years instead of 6 years.
Chairman Federal Board of Revenue, Asim Ahmad informed the committee that the advance tax for filers has been increased from 1% to 2% and for non-filer from 2% to 5% adding that in this practice the individual would file their returns and register with our system.
Senator, Muhammad Taha Mahmood said that previously it was reduced from 7 years to 4 years adding that around 50 industries linked with this business and if it happens this would create unemployment.
The committee unanimously recommended the proposals of the business community.
The committee also considered the proposal of a NGO working on health that demand increase in federal excise duty on sugar drinks from 13% to 20%.
The NGO briefed the committee that around 1,100 people died daily in Pakistan due to diabetes.
Senator Mohsin Aziz said that children also drink juices and different drinks which are more harmful than cigarettes.
The committee unanimously recommends 20% FED on sugar drinks.
The meeting was attended by senators Farook Ahmed Naek, Senator Muhammad Talha Mahmood, Sherry Rehman, Mohsin Aziz, Zeeshan Khanzada, Musadik Masood Malik, Syed Faisal Ali Subzwari and Faisal Saleem Rehman.