Punjab To Continue With Tax Relief In Next FY For Businesses' Revival, Development

The Punjab government will continue with tax relief and incentive package in the next financial year by giving more than Rs 50 billion tax concessions during next fiscal year starting from July 1, 2021

LAHORE, (UrduPoint / Pakistan Point News - 14th Jun, 2021 ) :The Punjab government will continue with tax relief and incentive package in the next financial year by giving more than Rs 50 billion tax concessions during next fiscal year starting from July 1, 2021.

In his budget speech during Punjab Assembly session here Monday, Provincial Finance Minister Makhdoom Hashim Jawan Bakht said that under the tax concession/relief package, one percent ratio on stamp paper would be maintained by Punjab board of Revenue and the purpose of this concession worth Rs 40 billion was to encourage new investments in construction sector. Punjab Sales Tax ratio on more than 25 services (small hotels and guest houses, banquet halls/lawns and marquees, catering services, IT services, tour operators, gyms, property dealers, Rent A car service, cable tv operators, treatment of textile and leather, commission agents of agri produces, Auditing, accounting and tax consultancy services, photography and parking services etc.) would continue at of 5 percent instead of 16 percent during FY 2021-22.

Similarly, he added, Punjab Sale Tax ratio on 10 more services would be reduced to 5 per cent from 16 per cent during next FY. These services included beauty parlors, fashion designers, home chefs, architect, laundries and dry cleaners, supply of machinery, warehouses, dress designers and rental bulldozers etc.

The tax ratio on call centres would be decreased to 16 per cent from 19.5 per cent.

He said that since 16 per cent tax rate on cash payment and five per cent through credit card at restaurants during the current FY had substantially helped in documentation of economy, the five per cent tax rate through mobile wallet and QR code would continue in the next FY as well.

The property tax under Excise and Taxation Department could be paid in two installments in FY 2021-22, he said and asserted that in an effort to control environmental pollution, the sale/purchase of electric vehicles would be encouraged by giving 50 per cent and 75 per cent concession on registration fee and token fee, respectively.