Mian Mujtaba Stresses On Documented Economy

Punjab Finance Minister Mujtaba Shujaur Rehman said on Wednesday that in order to facilitate the documentation of the economy in Punjab, all services under the Punjab Revenue Authority (PRA) would be brought under the tax net

LAHORE, (UrduPoint / Pakistan Point News - 15th May, 2024) Punjab Finance Minister Mujtaba Shujaur Rehman said on Wednesday that in order to facilitate the documentation of the economy in Punjab, all services under the Punjab Revenue Authority (PRA) would be brought under the tax net.

Presiding over the fourth meeting of the Resource Mobilization Committee 2024-25 here, he added that the tax rate on all services included in the tax net should be uniform. The inclusion of exempt services in the tax net with a nominal rate would ensure the promotion of a documented economy. The facility of reducing rates on sales tax on services would continue for those paying through credit or debit cards. "We are well aware of the problems faced by farmers. A significant relief will be given to farmers in the next budget," he added.

The Provincial Minister informed the committee that the board of Revenue (BoR) was reviewing the tax rates after five years and a formula would be determined for changing tax rates under the BoR which would automatically increase tax rates after a certain period. He mentioned that stamp duty was a provincial tax, and the FBR rates were affecting the revenue collection.

Mian Mujtaba directed the Board of Revenue to rationalize the tax rate on stamp duty. He added that enforcement under the PRA had also affected revenue collection in the last five months, but hoped that PRA would achieve its target.

The Provincial Minister also directed the Additional Secretary Finance to bring the proposed amendments to the Punjab Revenue Authority Act 2012 for approval as soon as possible so that they could be implemented before the start of the new financial year. He said that all collections under PRA would be made fully online.

The meeting was also attended by Provincial Minister for Communication and Works Malik Sohaib Bharath , Provincial Minister for Transport Bilal Akbar Khan, Additional Secretary Finance, Member Board of Revenue, and the PRA Chairman. The Member Board of Revenue presented proposals for reviewing tax rates on agricultural land and stamp duty, while proposals for uniform taxation and promotion of a documented economy under PRA were also presented.