Dar unveils relief ....
He said similarly, foreign direct investment will be facilitated which will help enhance the economic activity in the country.
He said our plan also envisages establishment special economic zones which will create job opportunities for youths.
The rate of withholding tax for services by print and electronic media is being enhanced from one per cent to 1.5 per cent and this will be treated as final tax in respect of income from these receipts.
The rate of withholding tax for commercial bills of electricity above twenty thousand rupees is being increased from existing 10 per cent to 12 per cent. There will be no change for industrial consumers.
The budgetary proposals envisage that an adjustable withholding tax at the rate of three per cent of the value of vehicle be collected by every bank or leasing company from non-filers at the time of lease. Withholding tax rate for nonfilers is being increased from fifteen to twenty percent on winning of prize bonds.
The Finance Minister pointed that zero rating of stationery items is open to misuse and announced withdrawal of the facility.
Similarly, he proposed that zero rating on preparations for infant use milk may be retained while zero rating on milk and fat-filled milk sold in retail packing is withdrawn.
Dar said the rate federal excise duty on cement at the rate of five per cent of the retail price is being replaced with fix rate basis at the rate of one rupee per kilogram.
The existing sales tax rate on mobile phones is being increased from the existing Rs500 to Rs1000 and from Rs1000 to Rs1500. The rate of tax on low category mobile will remain unchanged at Rs300.
The minister also announced increase in tax rate of about 23 paisa per cigarette for lower tier cigarettes and 55 paisa per cigarette for higher tier cigarettes. The rate of federal excise duty on aerated waters is being increased from the existing ten point five percent to eleven point five per cent.
He announced reduction of tariff slabs from five to four. The new general slabs will be three percent, 11 per cent, 16 per cent and 20 per cent.
From next year the two per cent and five per cent slabs will be merged in the new slab of three per cent.