Budget 2012-13: Tax relief to 15 sectors withdrawn

Pakistan

Budget 2012-13: Tax relief to 15 sectors withdrawn

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Tax exemption in 15 sectors will be withdrawn in the financial year 2012-13.

01 June,2012 04:00 pm

People earning 0.4 million will be exempted from tax whereas tax has been imposed on withdrawing Rs 50 thousand, rather than Rs 25,000, from the banks.Dunya News has got the details of budget 1012-13. It has been decided to exempt 15 departments from income tax, sales tax and customs duties. It has been recommended to exempt income tax on pencil, ink and note books.Apart from this, it has also been recommended to decrease the ratio of income tax by 6%, bringing down from 16% on raw material used in local industries. Recommendations have been made to exempt people earning Rs 0.4 million.It also has been recommended to cut customs duty on raw materials of 94 items and federal excise duty on livestock and insurance.Federal excise duty on Lubricants, cement and soft drinks has been proposed. The ratio of tax on importers has been recommended to be 3% rather 5 percent.About 10% tax would be imposed on annual income from Rs 0.4 million to Rs 0.7 million, 15% on income worth Rs 0.7 million to Rs 1.5 million, 20% on Rs 1.5 to Rs 2 million and 25% on Rs 2.5 million or more than that.t is worth mentioning that tax has been imposed on withdrawing Rs 50, 000 rather than Rs 25,000 from banks.