The report of the Resources Mobilization Commission was submitted to the Finance Minister. Photo: File
Islamabad: The Resources Mobilization Commission has recommended an advance tax on future profits of wealthy individuals, a minimum tax on the fair price value of all movable and immovable assets and levy of appropriate tax on exporters.
The Resources Mobilization Commission submitted its interim report on Saturday despite non-cooperation from the FBR. According to the commission, the FBR has not cooperated in providing access to relevant data, and has put up unreasonable obstacles and the FB RK’s subsidiary Pakistan Revenue Automation Limited also did not provide the required complete data.
Commission Chairman Ashfaq Tola submitted the interim report to Finance Minister Ishaq Dar, the commission has recommended the government to impose 5 percent tax on future profits of listed companies and 7.5 percent on profits of unlisted companies.
According to a statement issued by the Ministry of Finance, the Finance Minister appreciated the efforts of the Commission, considered its suggestions and agreed to reform business-friendly taxes in collaboration with other stakeholders.
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According to the sources, the commission has proposed to increase the tax rate on non-corporate culture from 1% to 8% to encourage corporate culture.
The Commission has also proposed to increase the tax on profits of export companies operating under the final tax regime, by increasing the dollar value of exporters who keep their earnings outside the prescribed period. It has also recommended to impose tax on the additional income earned.
The Commission has recommended that the current final tax regime for exporters be de-minimised, with the commission recommending a reduction in the rate of various taxes for wholesalers, distributors and retailers to 1 per cent and for other businesses to 4 per cent. Is.
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Similarly, the commission has proposed to increase the rate of withholding tax on commercial importers to 8 percent and to rationalize the minimum tax rate on the provision of various services, to prevent abuse of tax exemptions in the real estate sector. It is recommended that this exemption be given only to those owners who register their property in full.
The Commission has recommended amendment of Section 111 of the Income Tax Ordinance, so that tax can be levied on all declared benami assets, while the FBR cannot levy tax on more than a specified period.
Furthermore, while addressing the meeting regarding reforms in the energy sector, the finance minister said that it is the priority of the government to solve the problems of liquidity and efficiency of government-owned enterprises in the energy sector to increase the economic development of the country. .
The Finance Minister has directed the concerned authorities of petroleum division, needle companies and PSOs to make necessary efforts to improve their liquidity as soon as possible.
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