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New Rebates by Government Punjab


Federal Budget 2020-21 came into effect from today. On Tuesday, President Dr. Arif Alvi approved the Finance Bill for the financial year 2020-2021. After approval from the National Assembly, the Finance Bill was sent to the President for signature. On Tuesday evening, Dr. Arif Alvi ratified the Finance Bill. The President of Pakistan approved it under Article 75 of the Constitution, after which the budget presented by the government from July 1 has come into force across the country. In the June 29 session of the National Assembly, the Federal Minister for Industries and Production presented the Finance Bill for the next financial year 2020-2021 in the House for approval, which was passed by a majority vote.

The new fiscal year 2020-21 finance bill will take effect today, July 1 (Wednesday).

The Punjab government has given various concessions and exemptions in GST on services, construction services, property tax, entertainment tax, 4% tax on rider services (online taxi services) (ride-healing services) will also be implemented from today, stamp Due to the amendment in the Act 1899, the rate of various types of stamp duty has also been reduced from 5% to 1%. According to the Finance Bill, which will come into force from today (Wednesday), the rate of tax on health insurance, doctor's consultancy and hospitals, which was earlier 5 per cent, will be zero per cent from today. The tax rate on more than 20 services has been reduced from 16% to 5% including small hotels, motels, guest houses, wedding halls, lawns, venues, awning services and caterers, IT services, tour operators, gyms, property dealers, cables. Includes TV operators, treatment of textiles and leather, commission agents related to agricultural commodities, audit, accounting and tax consultancy services, photography and parking services. In the new financial year, property builders and developers will be taxed at Rs 50 per square foot and Rs 100 per square yard, respectively. Anyone who pays tax as property builders and developers will be tax deductible from construction services.

Consumers who pay cash at restaurants and beauty parlors will be charged 16%, while credit or debit card payers will be charged 5% general sales tax. In addition, by amending Clause G of sub-section (1) of section 70 of the Sales Tax Act, 2012, the period of imprisonment of defaulters with the permission of the Appellate Tribunal shall not exceed six months but shall also be applicable from today. For the new financial year, property tax has been paid in two installments and in case of full tax payment by September 30, 2020, taxpayers will get 10% rebate instead of 5% and full exemption on collection of surcharge for the financial year 2020-21. Will Entertainment tax rate has been reduced from 20% to 5%, all cinemas will be exempt from entertainment tax till June 30, 2021. According to the finance bill, the implementation of the new property tax valuation table has also been postponed for one year. In case of full payment of vehicle registration and token tax, 20% rebate will be given instead of 10% while special discount will be given in case of online payment under Punjab ePay portal. In the new financial year, the rate of stamp duty has been reduced from 5% to 1%.

The general sales tax rate on clubs including race clubs and their membership services and facilities will remain at 16%. In the new financial year, the Punjab Government will have the power to grant the Punjab Infrastructure Development Cess Act 2015 where it deems it appropriate and necessary to waive the payment of cess. Economists have said that the government has given a tax relief package of Rs 56 billion to various sectors in the budget. On the other hand, the federal government has reduced the utility of this relief by increasing the prices of petroleum products. He termed the extraordinary increase in petroleum prices after the budget as a mini-budget. Motorcycle prices have been increased. According to a report , the prices of various models of motorcycles have been increased by Rs. 1400 to 20 thousand which will be applicable from July 1. The increase comes after the company's budget for the new fiscal year.

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