Govt may reduce income tax exemptions, PM calls cabinet meeting today
ISLAMABAD (92 News) – The government is all set to present one thousand billion rupees mini budget as the cabinet is likely to reduce income tax exemptions granted.
According to the sources, the government is planned to present amendments to the budget in a National Assembly. A meeting has been called on Thursday (today), which will be chaired by Prime Minister Imran Khan, to discuss this.
As per sources, the government is likely to present mini-budget as to make significant amendment to Finance Bill 2018-19. The cabinet is expected to approve the Income Tax Ordinance Amendment, which will reduce tax exemptions granted by the previous government. This means more people will have to pay income tax again.
The sources said that the Custom Duty expected to increase by one per cent and The Federal Board of Revenue (FBR) proposed to impose new taxes worth Rs300 billion and increase the income taxes on salaried persons. Following this, the prices of more 400 things will be increased.
According to sources, the PML-N government had introduced tax exemption for annual income up to Rs1.2 million. The new government will reduce the slab from Rs1.2 million to Rs0.4 million. The proposal has been given to take the rate of income tax will sustain on the same level from June 30.
Meanwhile, the rate of fines will be increased for the tax defaulters. Ministry of Trade has prepared the tariff lines policy for mini-budget. The investment policy and new five-year trade policy is also likely to be presented by the government.
On Wednesday, the PTI-led government will make a significant amendment to the Finance Bill 2018-19 along with changes to the amnesty scheme introduced by the previous government.
A joint Parliament session is expected to be held on Monday evening. President Arif Alvi will address the session. Prime Minister Imran Khan had earlier issued directives to postpone they joint Parliament session by two days following the death of former prime minister Nawaz Sharif’s wife.