ISLAMABAD: The Senate Standing Committee on Finance and Revenue Tuesday recommended to reducing super tax besides rationalizing advance tax for non-filer.
The committee met here under the chairmanship of Senator Saleem Mandviwalla discussed and approved several tax proposals under Finance Bill 2023.
The body proposed to reduce the super tax to 7 percent from 10 percent on income above Rs 500 million besides charging tax at the rate of 6 percent on income between Rs 400 million to Rs 500 million and 4 percent on income between Rs 300 million to Rs 400 million.
Earlier, the FBR official said that the budget proposed super tax at the rate of 10 percent on income above Rs 500 million, 8 percent on income between Rs 400 million to Rs 500 million, and 6 percent on income between Rs 300 million to Rs 400 million.
The committee also suggested to increase the advance tax at the rate of 1 percent from 0.6 percent for non-filer persons on cash withdrawal from banks.
To encourage foreign remittance, the committee approved exemption of 2 percent tax on purchase of immoveable property for a non-resident individual holding Pakistan Origin Card (POC), National Identity Card for Overseas Pakistani (NICOP) and computerized National Identity Card (CNIC) acquiring immovable property through SBP notified FCA and NRVA accounts.
After detailed discussion, the committee also approved the limit of US $ 100,000 under unexplained income or Assets, it is a remittance from outside Pakistan through normal banking channels.
Senator Saadia Abbasi said that it was good for Pakistan that people invested in the country and also proposed that it was an income through proper banking channels so the word ‘unexplained income’ should be changed.
The body also approved the minimum tax on income of certain persons.
The committee approved the FBR proposal regarding recovery of liability outstanding under other law which includes empowering the commissioner to recover any outstanding liability under any other statute and law for the time being in force, in respect of any default.
The FBR official informed that it was a facility for department to recover any default payment.
In this regards the department referred the case to the FBR as the board commissioner has power to recover that amount.
Senator Mohsn Aziz, said that overall industry contribution in tax is 70 percent and remaining 30 percent is contributed by agriculture and real estate etc.
The committee also considered and approved the payment to non-residents which included if order is not passed within the period of thirty days (excluding the period for which the taxpayer sought any adjournment), the certificate shall automatically processed and issued by IRIS web portal.
The FBR officials proposed that direct exports under export facilitation scheme, 2021 to be reduced to 1 percent instead of higher rate of 4.5 percent on supplies adding that this facility also availed by those who add from July, 2023.
The committee approved the reduced rate of 1 percent to encourage exports of the country.
It also approved the establishment of international centre of tax excellence which was built by the FBR with the support of Asian Development Bank (ADB) whereas in order to encourage listed companies in Pakistan Stock Exchange (PSX) the body approved 1 percent tax on listed companies and 1.25 percent on all other companies.
The senate body deferred the proposal to charge 10 percent withholding tax on issuance of bonus shares by a company.
The meeting was attended by State Minister Aisha Ghaus Pasha , Senator Saadia Abbasi, Senator Mohsin Azia, Senator Dilawar Khan, Senator Zeeshan Khanzada, Chairman FBR, and offical of FBR, ministry of Finance, ministry of Law and SECP.
