Pakistan: The Finance Supplementary (Amendment) Act, 2018

Income Tax: 

With the introduction of Finance Act, 2018, flat rate of 15% were imposed on income of individual including individual having business and this issubstantially lower than the rate of tax on business income for companies which is 29%. However to cover such a huge gap rate of tax for business individuals have been increased to 29% whereas salaried individuals rate of tax has been increased to 25%. Rate of tax for individual has been substituted as under: 

Business Individual

Salaried Individual

The rate of tax on banking transaction by non-filers has been increased from 0.4% to 0.6% under section 236P. 

The supplementary finance act seeks to withdraw exemption granted to provincial governors and federal ministers for rent free accommodation and free conveyance. 

Sales Tax 

The act seeks to provide exemption under sixth schedule to various medical equipment and LED bulbs. 

The act seek to reduce rate of tax on supply of LNG/ RLNG to 12% for supply to gas transmission and distribution companies. 

Further the newly elected Government through SRO 1265(i)/2018 has enhanced regulatory duties on various goods to cover the deficit in balance of trade of the Country. 

Through the Supplementary Act, rate of Federal Excise Duty has been enhanced as well on cigarettes to discourage the smoking within the country.

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