The 2004-2005 national budget for Pakistan introduced relief measures in the areas of income and sales tax. The budget also proposed some revenue and tax rationalization measures.
Pakistan’s budget introduced significant taxation relief.
The budget also tried to simplify some existing measures and included some tariff rationalization measures as well.
Income and sales tax relief acts introduced by the 2004-2005 Pakistan budget include:
A raise in the basic income level from 80,000 to 100,000 Rupees.
A withdraw on withholding tax for machinery import.
A proposition that retailers who generate annual turnover of up to 5 million rupees, are to pay 0.75% of their annual turnover as final tax.
The budget offered sales tax exemption provision for import of harvesters, tractors and bulldozers in order to provide support to the agricultural sector.
An introduction of reduced activation charges for cellular phones.
This budget proposed to abolish the turnover tax scheme.
The tax exemption limit was raised to 5 million rupees both for the manufacturing sector, and retail sector in order to promote SME’s.
Revenue Measures introduced by the 2004-2005 Pakistan budget include:
The budget proposed a levying of central excise duty for advertisements on cable and CCTV(Closed Circuit Television).
It also introduced a levy of central excise duty on the import of edible oil.
Tariff rationalization measures include:
Custom tax on the import of industrial raw materials was rationalized.
The budget introduced rationalization of custom duty structure in the automobile sector.