Monitoring Desk
ISLAMABAD: The National Assembly (NA) on Wednesday approved the Rs50 per litre petroleum levy as the house passed the Finance Bill 2022-23.
The bill was passed after Minister of State for Finance Ayesha Ghous moved the house to levy Rs50 per litre on petroleum products during the next fiscal year. The levy has been a major demand of the International Monetary Fund (IMF).
However, Ghous said that the finance bill was not changed at the request of the IMF. “80 per cent of the amendments deal directly with taxes,” she said while adding that the taxes imposed targeted the “rich” to provide “relief to the poor”.
The minister also said the current policies were a result of the agreement the previous Pakistan Tehreek-e-Insaaf (PTI) government had finalised with the IMF. “We are only fulfilling our commitments,” she added.
Finance Minister Miftah Ismail however said that for the time being the levy stood at zero and there were no intentions to levy Rs50 yet, despite the lower house’s approval.
An amendment pertaining to taxes imposed on the salaried class was also approved. According to the amendment. For those earning Rs1.2 to Rs2.4 million, will now pay a fixed tax of Rs 15,000 plus an additional 12.5% of the amount exceeding Rs1.2 million. The tax rate for Rs2.4 million to Rs3.6 million is set at Rs136,000 and 20% of the amount over Rs2.4 million.
Those earning between Rs3.6 million to Rs6 million will have to pay Rs405,000 plus 25% of the amount exceeding Rs3.6 million. For income between Rs6 million to 12 million, the tax will be Rs1 million in addition to 32.5% of the amount exceeding Rs6 million. Where the taxable income exceeds Rs12 million, the tax is Rs2.9 million plus 35% of the amount exceeding Rs12 million.
Similarly, for those earning between Rs0.3 to Rs0.5 million, monthly a tax of Rs0.405 million will be applicable, in addition to the 25% tax to be paid on the amount exceeding Rs0.3 million. For individuals earning between Rs0.2 million and Rs0.3 million monthly this will stand at Rs0.165 million plus 20% on the amount exceeding Rs0.2 million. In the same manner, for those earning a monthly salary of Rs0.1 to Rs0.2 million, a tax of Rs15,000 plus 12.5% of the income exceeding Rs0.1 million will be imposed.
Furthermore, the assembly approved a “super tax” of 1 to 4% on annual income between Rs0.15 billion to Rs0.3 billion and 10% on annual income exceeding Rs0.3 billion.
Additionally, a 10% “super tax” will be levied on airlines, automobiles, beverages, cement, chemical, cigarette, fertiliser, steel, LNG terminal, oil marketing, oil refining, pharmaceutical, sugar and textile industries.
A levy was also imposed on imported mobile phones. Now, a tax of Rs100 will be levied against imported phones worth up to $30, Rs200 on mobile phones worth $30 to $100, and Rs600 on imported phones worth up to $200 will be imposed. While for imported mobile phones costing up to $350, a tax of Rs1800, for a $500 worth phone a tax of Rs4,000, for a $700 worth phone a tax of Rs8,000 will be imposed. Lastly, for imported mobile phones costing above $701, Rs16,000 will be levied.
A 10% super tax will also be levied on the banking sector in the financial year 2023. A provision was also passed regarding the collection of sales tax from traders through electricity bills.