Pakistan’s President, Dr. Arif Alvi signs the second Amendment of Tax Laws Ordinance, 2022 to collect 36 Billion in revenue through taxes.
According to reports, the President signed tax law ordinance to increase FED (Federal Excise Duty) by 36 Billion under the finance act of 2022. Arif Alvi gave ordinance approval on the advice of Prime Minister Shahbaz Sharif.
As per the presidential ordinance, also termed as “mini-budget”, a sales tax of 5% has been imposed on trader’s electricity bills worth 20,000 PKR and 7.5% tax on bills more than 20,000 PKR, per month. Through this new sales ordinance, the Government is expected to gain Rs 27 Billion tax amount.
FED on imported vehicles has also been increased through which the government can collect up to Rs 14 Billion tax. Besides, tax amendments are also imposed on the Tobacco industry aiming to collect Rs 36 Billion tax by increasing FEDs on tobacco and cigarettes.
Through all these taxes, the govt will be able to achieve tax target while increasing more revenues during the current fiscal year. However, the government exempted taxes on agriculture vehicles, machinery, agriculture diesel engine, and public transportations.
Tax Laws Ordinance, 2022 Amendments
- 5% tax on trader’s monthly electricity bill worth Rs 20,000
- 5% tax on trader’s monthly electricity bill more than Rs 20,000
- Taxes exempted on the agriculture industry
- New taxes imposed on imported vehicles
- Rs 36 Billion taxes imposed on the Tobacco industry
- CVT on commercial vehicles has been ended